Negotiate with them calmly and with respect.Tell them you are sorry that you did not follow standard procedures for approval of work to be done and will be careful not to do it in the future.Offer to pay a one time penalty of say $1,000 dollars (which is way,way cheaper than the potential $5k to 10k you will shell out to a lawyer and court fees.Show some remorse and ask what you can do to demonstrate good faith and they might let you skate by without having to destroy the work you have already done.

Certainly haven't demonstrated any appreciation yet that I've seen. 

But must be verified by 60 day history, and must be a gift with no requirement to pay back.Reserve Requirements 3-4 Unit owner occupied properties must have 3 months PITIThree (3)- and Four (4)-Unit Property The maximum mortgage amount for the three (3) - and four (4)-unit properties is limited, so that the ratio of the monthly mortgage payment, divided by the monthly net rental income does not exceed 100%, regardless of the occupancy status.Livable Conditions The property must demonstrate the following characteristics: A continuing and sufficient supply of safe and potable water under adequate pressure and of appropriate quality for household uses.Sanitary facilities and a safe method of sewage disposal.

If you are indeed looking for a deal, demonstrate how you will fund, when you are able to fund and what you will do after funding.Plan your work, then work your plan.

That gives them an incentive (money) to invest their time in you and it demonstrates that you are serious.

Then you can at least demonstrates to prospective landlords that you are working on paying off the debt.  

I advise anyone interested in either purchasing with a renovation loan or refinancing that they ask lots of questions to give the consultant they are speaking with an opportunity to demonstrate their knowledge and competency (or lack thereof) and to confirm that the lender they represent has the infrastructure to provide these products well.

If you do a cash out refi immediately before you sell what are you demonstrating as your intent?

They came out to meetups regularly, did their own research also, talked to lots of investors, and demonstrated a true interest in expanding their knowledge.

I couldn't have asked for a better demonstration.