In the end, it would "zero" out, because they way I see it, if you don't get your principal back, then you never received interest in the first place.  

When I tried to cancel at the end of the month I received a great deal of push back (they were trying to charge me for a full membership) and it got pretty ugly. 

I signed on with Real Estate Federal's lead service in December 2017, and as of now (Mar 3 2018) I have received no leads whatsoever for my $1950 initial investment with them.

So if I reduce the expenses to get the property cash flowing I will get penalized by the HUD who I am told will account for these reduced expenses thus reducing the Section 8 subsidies I receive, possibly cutting rental income by about 70% !!

Other than that, you could look into receiving financing from hard money lenders, banks, other people's self-directed IRAs and 401ks (as long as you are not a disqualifed person), or partner with others.

Do they receive the difference in sale price once the foreclosure auction/REO sale goes through?

You may also elect to take 50% bonus depreciation which will give you around $450K in the first year (according to the estimate you received), or you can do the regular accelerated depreciation, which can still give you a large deduction in the first year. 

This is in respect of an unsolicited bid received by the broker from a single party. 

I’ve received a few quotes hovering around 12k to replace 90 feet and it seems high.

We haven’t received a copy of the term notice signed by the seller for us to provide to our lawyer in order to receive our earnest money back.