@Kevin IzquierdoI do agree with the notion of transforming a dining area into a bedroom for increased profits ,but it will not always work.

These are the biggest factors in transforming a property. 

Thanks for your thoughtful comments and genuinely entertaining write-up of what must be a terribly frustrating situation!

Genuinely Curious. 

Would I have to purchase as my Primary Residence and then resell to my company when I am ready to move and make the transformation?

It is so helpful and refreshing to be a part of group of people who are genuinely invested in the success of others, especially newbies like myself!

I'm very curious to learn about local opportunities, as well, as I genuinely have a lot of faith in the future of the economy and desirability of this place, even if I do end up starting my search farther from home.

Be genuinely interested in their life and listen for "change" in their life or their friends/family.

There is tons of information, and it seems that everyone genuinely wants to help each other.

If there was any genuine fraud, the borrower should have definitive proof of this and can find remedy through the legal system, if there was any.The other thing your neighbor could do is to request a loan modification, if that would change his mind regarding letting the property go.