Also, realize that if it does get to FC auction, you may get outbid and will get back only the $25K UPB plus your expenses, the borrower gets the overages and the winning bidder gets the home.

I have a dream to be able to work with people in a selfless manner in order that all who are involved wins. 

I would bet they made real sacrifices to make that trip possible and you don't know what happens afterward.  

My plan is to use private money to get the work done in under 8 weeks, and then refi.My question comes in at the refi part- is there a creative manner to refinance so that I pay the lender back their 50K (plus interest) but still benefit from the 0% interest - or is the best bet to borrow enough monies to pay for the purchase and Reno?

Finally, Please share wins and losses in low income areas.

If I have to make a bet between you and other people, I'll place my bet on you 99% of the time. 

Its better to walk away from a deal than to take any deal which could turn bad.I usually track how many deals I'm making and how many I win.

I also understand that a single family homes have a better chance at appreciating, but am hesitant to trust the appreciation we have been seeing to continue over the next few years which again takes me back to a safer bet in condos.Scott

Betting on appreciation is something that may never come to fruition and now you've wasted all of that time and money for what?

If they decide to move in fear of losing their voucher, it will be a win win situation for both of us.