Don't have much advice but having been through the college application process with my daughter, you have my sympathy. This is a stressful process even when you aren't dealing with a special situation.

Am I understanding the situation correct and if she got into the honors program at this university then you wouldn't need to move?

I suggest you check ALL the details for her applications. For most of my daughters applications, the application needed to be in on ONE particular date. (varied from end Nov - mid Feb) But there was another 2-6 weeks for all the final documentation to be received. For example my daughter was applying to art schools and often the portfolio wasn't required for an additional month after the application.

Good Luck and hang in there.