and implying that you would offer cash, then figure out financing (hard money, friend, relative, lottery winnings) before closing.

It was a win win win situation.

Wayne, does your response mean its somewhat of a bait and switch - or just that I could possibly win the bid but not win the property?

I agree with emphasizing the pool. 

Is the REO bid deposit forfeited if you do not win the bid or if your winning bid is rejected (min not met)?

Coming from my back ground as a physician, it is important to me that all parties are treated fairly, openly, and the deal is a win win for all. 

These folks are friends of the family and we are looking for a win-win.The title company has the P&S agreement and is performing the title search at this point.

From what I know and hear about the silicon valley there will probably be 30 bidders and the house will sell for far more than ask.. good luck  let us know what the winning bid is if its public

In my opinion that was your 1st mistake, " He who helps plan the battle never battles the plan" from how to win friends and influence people by Dale Carnegie, a must read.The above means you sit down with the trades individually and discuss there part and ask them what is the best way to move forward and as efficiently as possibly, they will tell you how to develop the schedule and plan, this dose not mean you do and agree with everything they suggest, this give them a say and respect and its there idea, so they think.I have done a few projects and I have never needed signed contracts with the trades, theirs more to managing projects then nuts, screws and wood, you are in the people management 1st and the trades are running there own business to make money, trust me that comes 1st in there minds.Mike

She emphasizes, like anyone should, on people's needs before the big profit.