I just don't want to one day sell the house and realize that I really didn't make any money because I was using a false estimate for my ROI. 

My state I.D is NV and my residency is at my mothers home since 2008 that she deeded to me so I am not sure how they have all this false information unless my aunt gave them false documentation and information.

What holds people back is FEAR (False Evidence Appearing Real).

You already have the backround take what you have learned and make it work, I think most people have fear I believe I read it in unlimited power yrs ago and something to the nature of those four letters stands for false evidence aint real.

They claimed that the house was fine and they would never sell us a house in a slumlord/drug area (both of them were false).

Most people are very quick to dismiss spending that much as an absurd amount to pay for something you can learn elsewhere but there are many niche areas (finance, notes, restructuring, even negotiation techniques) with one little tidbit that can easily make you an extra $2000 in a deal let alone the $200000 you make off that one idea over a lifetime.

If either of those is false, then you should probably walk.

If/when a claim happens everything will be looked at and if false or misleading statements were made on the application that is grounds for denying the claim.

It comes across as asking for advice on how to get away with taking out a loan under false pretenses.

@John Hannah   its what is taught in yellow letter school... nothing more nothing less.. very few of those that send those letters can actually Pay cash in the strict sense.. but the sellers don't know that.. they just believe it.. its false advertising most of the time frankly.. but its unregulated buyer beware industry so really anything goes.