Here are some of my questions regarding the process:1) Does the JV wholesale contract need to go to the title company in order to ensure that my portion of the wholesale fee is guaranteed to be properly handled? 

There is not guarantee that it all works out, but with risk comes reward.

Keep in mind that the loan must be non-recourse, as disqualified person you are not allowed to provide a personal guarantee, most lenders/banks don't do these type of loans. 

They still look at your credit score for the guarantee of the loan.  

I GUARANTEE the IRS considers loan pay down as income and US citizens darn well better be paying income tax on it. 

Do that for 25 plus years and you’re almost guaranteed to be rich.

As a GP I'm not sure how much you will personally be investing, but a waterfall structure with hurdles would be your best bet as it would insure you passives a solid return while guaranteeing performance on your part.

The problem your friend faces is that a lot of traditional lenders won't work with borrowers towards a loan modification unless they are already not paying and then it's not guaranteed that they will anyway.

I know there's no guarantee I will win the house at auction, and I'd like to keep them from losing the house altogether.

In an assignment both parties will see how much you are making and I guarantee one or both will balk.