I recommend putting in so much work that you can convince yourself that you truly want to walk this path, longerm.

People are walking away from six-figure deposits they’ve made over time.

I think you have a pretty reasonable case here to walk away without losing your EMD, especially if the seller knew about this and chose not to disclose - that alone should suffice.

Don't walk alone. 

You need to walk through it.Good luck!

Purchase price: $710,000 Cash invested: $158,000 We purchased this newly renovated 3 BR, 2 BA home a short walk from the beautiful beach on Emerald Isle.

I walked the property but it was full of tenants stuff so hard to see much of the walls and what not.

We currently have around 175K in equity in our house we are willing to access some of it utilizing a HELOC but we want to get connected with investors that can help us walk through this! 

Please, someone tell me I'm not the crazy one for walking away from deals like this.

This way they walk away, while your client gets the property and the loan.Your question was a bit unclear, because if the property is distressed from the loan... why would you want to assume the loan?