If her loan is an FHA loan they will for sure not take a loss.

During our rehab we converted the house back to having a garage, but we were screwed whether we did this or not. at $185/sqft, 300sq/ft is around $55,000 in value loss.

. $$$$..It costs so much to get a room, and/or spring for a guarantee in spending of cocktails or food from the attendees.

Also consider retaining an attorney to draft a lease that you can reuse.I am very sympathetic to your troubles and your loss, but I also believe you bear some of the responsibility in not protecting yourself.

With a 5% vacancy loss that's $68,536.8 (and I usually underwrite to 90% to be safe), 50% expenses (general rule of thumb) would give you $34,268.40.

  ( I am buying this for profit or loss and I am a principal in the transaction and a licensed agent in this state)  simple and never once had a seller balk at it.but any way each his own....

Most the time, the bank buys them back and puts them back on market within a few weeks and will sell them for a loss sometimes. 

- $11,349Total loss- - $3,549I had to replace the ac and the furnace they were17yrs old. $6500 if it wasn't for that i would have a profit of over $3000.

It's best to pair this with something that mitigates the financial loss to the charity like a significant whole life insurance policy. 

But it does give food for thought.