Are there any special circumstances to refinance a home in a revocable trust? 

There can be insinuating circumstances that can justify not occupying the property such as a job transfer or a life changing circumstance, but technically the bank requires you to occupy it when you say you’re getting an owner occupied loan.

Given the circumstances, perhaps John's approach would be the best solution for multiple reasons.

Or what do you do in these circumstances?

Big range, but there are a lot of influencing circumstances.3-Yes, typically a private lender will command a higher interest rate. 7-10% is not unheard of.

My question is-  given these circumstances and the unknown implications of an eviction moratorium extension and/or drawn out process, should I go ahead an reinstate/assume the senior loan since whatever I pay out of pocket would just be reducing what my lender pays off when I finance it?

This agent is def not that busy that they'll charge $500 upfront fees.Are there any circumstances where this fee can be refundable, even if I signed a contract that says otherwise? 

You then have a payment to him for $110,000 price - $10,000 down leaves $100,000 @ 6% is $600 a month plus tax and insurance closed through escrow with a title report and recording the transaction, there will be a note and a mortgage drawn up by escrow on a 30 year fixed due in 6 months (which is far too short of a time, you need a year at least, preferably more time on the owner financing if you are going to flip, to cover unforeseen circumstances and rehab time, sales time and any change in market time, but I digress again).

It makes sense to look at the circumstances behind the numbers.

I think more information would help us give advice on your circumstances.