Conversions get very technical and can trigger specific requirements based on various property circumstances. 

So for most people, most circumstances, most situations, realistically your cash and rehab is held up for 2+ years. 

If you have a partnership structure or some other facts and circumstances around the loan that indicate you are extending it in the capacity of a trade or business, it will be considered ordinary income.Keep in mind that the tax rates will not differ between ordinary and passive income unless you sell the loan for a gain/loss.

Feels a bit like a Hail Mary given the circumstances though, and I am wondering if it makes the most sense to just lower the price should it come to that if nothing happens in the next couple of weeks.Thanks again for your input!

Just a really bad set of circumstances for the OP.

We don’t know all the circumstances, BUT, from the small amount of information in the OP, it does seem like the OP believes that to earn a commission the broker/agent needs to represent the buyer all the way through closing and that if the buyer terminates agreement before closing the agent no longer needs to be paid.  

Quote from @Carlos Ptriawan: In case anyone interested to find out how to see this problem from the bridge-lender side intellegently, these information from one of the lender is very informative:Loan Modifications We may amend or modify loans that involve other-than-insignificant payment delays and provide interest rate reductions and/or extend the maturity dates for borrowers experiencing financial difficulty based on specific facts and circumstances.

Scheduled to open in the summer of 2019, the $51 million, five- story, 267-unit development will be a large and distinctive presence on the east side of Water Street.- In the past five years, Mobile has experienced a 33% increase in manufacturing jobs compared with about 8% nationally.- McGowin Park developed a huge retail space in 2015 which consists of: 199,500- square-foot retail shopping center containing a future expansion area, five restaurant "pads" and 4.5 acres of outparcel development, and the west development consists of a 148,000-square-foot anchor store with an associated gas station, an 89,600-square-foot shopping center and 7.41 acres of outparcel area.

I often see $130k appraisals but I'm certain the property would maybe fetch $110k on a sale.It's an important distinction.

It is rural and 30 minutes outside of a major city, however, it does have a 20x30 shop that a tenant under the right circumstances might find desirable.