It would be a reasonable alternative to waiting to see what government can come up with, although I think there is some issue with getting banks to agree that private insurance will cover the government mandated flood insurance requirement.

Banks and the Government, will not allow a flood of shadow inventory to be released all at once to kill the market.

When you reject the application you must give a clear reason for the rejection and that reason had better be in line with your documented policies in case some government or activist group decides to conduct a sting operation on you.

The BK rules while governed by Federal law also have state law requirements.

They can help you find buyers and sellers, teach you on the local laws and regulations. 

I am just not too familiar with the business aspect and do not want to break any laws or regulations but need to ensure that before the 5 month mark the lender is paid off or else the interest rate hikes up.

If so, you it will that kicks you into a Level 2 Alteration per the IEBC, which is the governing code on your project. 2.

@Jorge Guadian It is time for you to learn your state landlord tenant regulations.

Appraisers are so regulated, especially in the case of doing bank appraisals, that sometimes were aren't that accurate.

It's ideal to have both licenses as I use to, however resent regulations now prevents you from having both.