Sorry to be harsh, but you knew (in capital letters) that the seller does not have the capacity to repay the debt and you were even thinking of asking if it made sense to loan them money secured by the property?

That's a pretty harsh statement that I hope, in a more lucid moment, you'll retract.  

Sorry if this sounds harsh but I'm genuinely curious what the assurances you're getting from the local authorities look like. 

Is it in a state where winters are harsh? 

Same thing with Chemical Bank up here they are slow and delay the process.

If the well is dry you are drilling deeper, if the well is not making water like it use to it could just be screen is clogged with minerals like iron or calcium and would need a chemical treatment to open the screen along.  

I'm based in Beaumont & have a similar background in engineering and work in the chemical industry as well.

Sometimes just draining the pool is enough to solve some chemical issues.

My initial thought is to clean with a mold killing chemical and then watch it.

All of the experts tell me if a house was treated with chemicals more than say 20-30 years ago it is unlikely you will ever have termites again because of the chemical that was used.I guess they are talking about Chlordane.