But, if there is enough money in it they ill sell the house.

After talking with my lawyer this week Ill decide whenever or not to write the lender a formal letter.

Ill sell one of our houses in Bitcoins hahaLets just wait for the price of Bitcoins to drop a little firstThanks

Ill go back to the drawing boards some. 

I plan to get something started here soon but in the meantime Ill just be getting info!

Are there any tax disadvantages to this approach, and is this Ill-conceived?

Anyone who proclaims otherwise is either ill-informed or of ill-intent.People using these forums are looking for some help and when it is about repairs or refurbishing, the information is normally worth considering.

If i don't take action, I'm devastated that ill be in the same spot i was at the beginning of this year.

Hey we will make it right but you need to do this.. and sure enough if someone stands to get the 40k they paid for an education they won't use or do not have the skill to use they will do say whatever it takes to protect their 40k.... same here I understand @Todd Fry  his motivation its purely self survival he probably got ill when he went through this property that was suppose to be this great investment with rehab etc etc..

Many times you can't tell whether a homeless person is just an ordinary person who has run into extraordinarily bad circumstances, whether s/he is mentally ill (sociopaths can be charming), or is a criminal.