Sorry for the somewhat lengthy post but I wanted to share my story at a high level.

Thanks for the lengthy replies.  

@Ethan Jones- yes indeed, that is a great thread, but also very lengthy and mostly geared toward the platform sponsor perspective. 

They would have to go through a lengthy process including votes and such to get the money to pay off the lien.  

(It’s gonna be pretty lengthy so settle in or save it for later.)

Everything I've read mentions this as a good way to start a conversation and the house looked run down so I stopped and asked the owners if they had considered selling their house.After a hearing a very lengthy story about this gentleman's life he said "yes he wanted to sell" and would take considerably less than market value, he knew the house needed work.

Sorry I can't offer you any advice particular to your situation, but I do recall another rather lengthy thread about someone else that tried to recover money from a guru.

I'm leery of the 203k streamline because I've heard its lengthy and difficult for DIYers. 

Those include changes to the lengthy and complex recertification process in place today, burdensome owner-occupancy requirements, and limits on the types of property insurance that are considered acceptable coverage under FHA’s rules.NAR has worked closely with the Department of Housing and Urban Development to push for changes to FHA condo policy, and NAR President Chris Polychron recently testified before Capitol Hill to bring attention to potential changes, including those related to recertification and owner-occupancy requirements.

I have a lengthy Legal Opinion, from my seasoned Legal Team regarding this matter.