Don’t just stop at “they say.”Also, write letters to your local papers and other media about the city’s refusal to delist properties. 

My mortgage lender said they aren't able to do this and sent a letter saying it's not possible.

Like a letter of intent?

His attorney wrote a letter explaining the boundary was “old and established” and had become the new legal boundary years ago. 

@Frank ArjunYou can get an attorney to send a demand letter to get the information.

I was hoping to structure a deal that involves paying the seller every month and then a balloon payment in 5 years (when I can get an 80% LTV cash out refinance to put a mortgage on the property without having to put any money down because I'll have built up at least 20%).

I suspect at the dollar amount you invested most attorneys would say its not worth it. you could send in a sabor rattler letter for a few hundred bucks and see if that gets you anywhere.Keep in mind these guys are not unique this has happened to many many syndication of MF Just read the threads on BP..

  $800 per month for 12 months, $9,600 extra cash and profit for sending some letters out. 

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Private money lending offers the ability to structure deals in ways traditional lenders won’t, such as faster closings and tailored terms like interest-only payments or balloon payments.