There may be a way to mediate your risk and recover your testing costs and remediation expenses. 

I did the work myself, and re mediating the termites and repairing the damage cost under $1,000. 

Could you have the brother who is not in jail to help mediate with this?

Thanks for the advice.Still didn't open yet a US account because I'm investing with a partner (also lives abroad), and after consulting with a lawyer and CPA it makes sense that my partner and I form an LLC for the property, which means the account I open won't be under my name personally (but we will open an account in the States).I'm not sure how much I like the idea of moving money through a British bank, doesn't it raise costs adding another mediator in the process?

You might also want to check if their is a binding mediation clause in the contract.

Otherwise, mediation or court after closing would likely be the next option. 

If it goes further most standard lease agreements have a mediation clause to avoid court.

My thinking is that hiring a lead certified contractor to handle the mediation of Lead should be hired solely for the gut job, and separate GC company should be brought in for systems and finishing touches. 

I have attached photos of what I would consider pertinent parts of my purchase and sale contract regarding realtor liability and mediation, as well as the part on risk of loss/insurance that reads something like if there is damage that is returned to it's former condition prior to sale, the Purchaser can accept that or has the option to terminate the contract... as I was not made aware of the damage taking place, I never had the option to terminate the contract, or accept if the condition was returned to it's original form.I emailed my closing attorney and I'm waiting to hear back, as well as waiting to hear back from my realtor as they were going to contact the seller's realtor to discuss this.Is this damage something I definitely should have been informed of?

My last eviction in Massachusetts took 5 months for them to move via the court, left the place in shambles and was granted a repayment plan by a mediator of $ 50 per month till balance is paid off....