The seller has a $80,000 private mortgage on the property. 

But what if I find an amazing deal, that no one else wants or maybe other people have their eyes on another property, and I know I can make a nice profit flipping it, but I don't have the cash there.Should I ask for private money BEFORE the auction, and then just return it if I don't get anything?

Try looking elsewhere, look for hard money lenders or mortgage brokers with private money investors that loan out money from their 401k's looking for higher returns.

I am looking at financing with Phyllis Brown a private lender.  

I am obviously not up to speed on private lending.  

Private money, hard money then refinance (risky), have seller take back note.I'm no expert though I'm sure there are other ways.

Are you an experienced rehabber/ builder, who has more deals than you can fund yourself? How many deals have you had to pass up because your capital is all tied up, or you do not have enough capital available when a g...

Also, labor is inexpensive (if somewhat less reliable than a larger MSA), and I recently reviewed the 20-year plan for Kennedy Space Center which I believe shows some very promising possibilities for private investment in the aerospace business.

I'm brand new to REI and I want to use private money to do rehabs and flips in the Tri Cities, TN area.  

I'll private message you some information. :)