Re: do i need to use foam?
Boat didn't always sit indoors prior to you getting it apparently
Do all you can to do a complete & thorough rebuild, then take care of it. Store it covered, bow up, drain plug out and you'll be doing everything you can to keep it from ever getting waterlogged foam again. Should significantly decrease the chances of rotted wood below decks.
Depending on where you boat, when you sink it, you are required to recover it. At no small cost.....
But keeping the people, that have trusted you w/ their well-being, safe is of primary importance. That includes something to hang on to when the siht hits the fan. A boat floating upright & level, although full of water, is much easier to find & gives the former passengers something to hang on to, then separate people bobbing around individually.