If you decide to do a HELOC or a refi, and cash is tight, you could see negative cash flow for a while.

It's tight for sure.

After the deadline to send the Signed Termination Notice has passed - I would think you would be on firm Legal Grounds to proceed with your new folks.

@Wellington PalmaMany accountants are busy with the 4/15 deadline around the corner.

The guy talking is Vishen Lakhiani and after watching the video I bought his book. light mayo and relish but i can go raw if the grocery budget is tight that month

You could re-frame to include doors and partition it off but most garages built like this will be pretty tight if you add a wall if you have a 2 car garage. 

It's very possible that they determined they did not have legal authority to excercise a contract due to a problem with their transfer from the foreclosure having to be corrected/re-done.I would try to sit tight and make sure the listing agent knows you still want the property.

If you don't have the DP, it really going to be a tight deal. 

We have an extremely tight budget as we are doing this as a favor to a friend, not as a money maker.

Aside from the fact that I'm going to get fined on not paying it in time (and since their deadlines are so short, I don't see how I can ever get out of that cycle yet), any ideas how to pay it?