Clearly, each person has their unique circumstances and decisions of this size should be taken in context, with lots of deliberation and discussion (for all i know, I could be eating my words on this topic 12 months from now!).

would definitely consult an attorney as this is a very unique situation. 

Some are variable APR and some are fixed, some have interest only repayments during the first 10 years, and then jumps up to fully amortizing over the next 20 years. 

Get them to purchase a money order OR there are programs out there that partner with popular convenience stores where for a small fee they can bring a cash payment and their unique code, and that payment is sent to you as an eCheck.

A demand feature permits the lender to require early repayment of the loan.If the demand feature is checked "yes," the lender can require that you immediately pay the entire loan balance (principal and interest) at any time.

Is the home being appraised a pretty unique property?

Now more than ever, quality, unique and individual design, and location are so importanf for a builder to close a sale.

Sure he can take a loan, and then he re-pays with dollars that have been taxed, and then when he later withdraws those same dollars, they are taxed yet again ...

You could be faced with paying or trying to negotiate the repayment of ALL past due maintenance fees from the original owner; the owner that was actually foreclosed upon.

The goal ends up being quite personal, and unique to your situation.