Need Advice on Septic Issue on My 1st Flip!

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Hello BP,

I just closed on my 1st flip property that was a Fannie Mae foreclosure and this deal moved quickly because we bid on it back in February and lost out but then it popped up back on the market last month so we made offered asking price with cash on a quick closing. There is no public sewage on the street we purchased on either. We had an idea there was an issue with the septic tank, and put aside money in the budget for repairs, but didn't have it inspected until post closing (lesson learned). Today we learned that it is a HUGE issue because there is no leech bed and it drains out of the hill in the back yard! So we are now looking at a $20k+ repair that totally blows our budget. And that is probably the best case scenario. Additionally we've learned that we may run into major issues with the township on this if we do repair it.

I am looking for advice on alternate options to deal with this problem. Our main goal was to fix & flip this home but that now seems impossible. We did a hard money loan to purchase/renovate the property with a 12 month term. 

Any advice/guidance is very much appreciated!

TJN