Or just use private money. 

But, the seller will never close a sale until the buyer releases that claim and withdraws the affidavit because a new buyer's title company will not issue a title policy and the new buyer's mortgage lender will not make a mortgage loan.Its not worth doing in this case but when real money is involved it is pretty effective.

Owner carry financing, hard money for renovations, then refinanced into a long-term mortgage.

I am seeing a roommate who does not have pets.Cozy furnished 1 bedroom with living room and kitchen privileges, your own private bath and a shared refrigerator.

Once the rehab was done I refinanced out of the private loan into a conventional loan as a primary residence.

Need more details. ;-) The following is just general informationIt sounds as though the seller has an investment to sell, not his private home.

Even if I use a mortgage, most will not finance if it's not livable and where do you get the money for repairs. 

If you can cover your mortgage with rental income, it may be worth keeping it as it may appreciate over time. 

As a mortgage broker, I've got a 100% financing down payment assistance grant that allows for owner occupants to purchase a duplex.

Using mortgage debt at 6-7% on a refinance to pay off higher rate debt such as a credit card at 15-25% is a savings!