Was appraiser for 15 years, have reviewed many fraudulent appraisals, appraiser is only interested in making lender and realtors happy to get more work.

If they want to redeem, it has to happen within those 120 days.During that time is a gamble for the investors who own them.

Basicaly your saying  put more in at a lower rate of return and then gamble on appreciation??  

As far as risks, I'd rather take the 10 years of certain cash flow with moderate appreciation over gambling on equity increases.

No, because a) that might be their luxury/vice item for all I know, which is 100% fine if it's viewed as a luxury item that they just really personally enjoy and gain happiness from (it's much less harmful than other vices, like drugs or gambling!)

Closing on the loan and Not revealing it in your loan app would be fraudulent.

It's a little bit of a gamble for both of you, but I think a fair one. 

Hopefully during that time the house appreciates (always a gamble and never guaranteed). 

That is a problem and I feel is a bit fraudulent.

if the second contractor's bid is accurate then that is evidence that the first is dishonest at best and fraudulent at worst.as far as your contract, if they stopped responding, is that at breach of the contract?