Your lender setup their loan application incorrectly as a purchase if it was a refinance the costs wouldn't be 132k which is assuming a purchase price of 120k plus a payoff and closing costs which is how the cost total arrived at 132k.The cost should instead say about 13k and new loan to be 84k for a net of 71k proceeds to borrower approximately. 

The seller insists that the lease is incorrect and that I owe him this money and that the deposit dispute is between him and the tenant and has nothing to do with me.  

Let's say you divide your NOI by YOUR made up purchase price + whatever you want to incorrectly add to it and let's say you come out with 10% crap rate. 

Yes, there are con artists, liars, cheats, crooks and others who attempt to borrow under false pretense regardless of laws and penalties.I've given a lot of information out here, there are gold nuggets of financing matters scattered in thousands of posts, too much really, but most of it is here.We also have hundreds of real estate investors here who have done some form of financing, Realtors, commercial guys who throw out comments and advice in financing and most are incorrect.

@Colin Perry , let me correct something that @Kenneth Bell has stated incorrectly.

Sounds like the drain guy has been out before for this issue and said it looks like the pipe was replaced but done incorrectly or incompletely.

RealtyTrac has the property identified correctly as AUCTION (Trustee sale) but the opening bid is incorrect.

I've done a little bit of research on investment clubs in the area and it seems like all the numbers are disconnected or incorrect (I tried calling a club in Orange County and ended up talking to a very lonely lady about how she gets calls for the club all the time, about how her husband was an engineer, and she's an amateur magician hahaha) if you can give me valid numbers and locations for local clubs I'd greatly appreciate it!

There were/are BP members who hold themselves out as Crowdfunding experts (time has shown that was incorrect) and officers from iFunding that posted and talked-up about deals being funded.  

If EWilliams didn't do that, then he's listing the ARV incorrectly, it should be FMV instead.