You will sleep better at night.

Although a letter to the lender explaining what happened with supporting documents should make you sleep better and its always better to be proactive of course.Mortgage fraud is real.. and there are plenty that go to jail for it believe me.. but that's not YOU.. you just had a life experience change that is verifiable and real. the guys and gals that get rung up .. do this as a scheme and get caught then they get fried. 

I should be able to disconnect and turn off my phone for a good night sleep.

Just pass the cost onto your tenants and sleep like a baby. lol

My wife and I sleep on the second floor.

Otherwise weigh if you used these or other options  you could sleep at night if you did buy now then consider going for it. 

Easiest solution to this problem and it's guaranteed to make your life easy and you will sleep well at night; get a few reccomendations for a local real estate attorney.

In the case of the eviction I mentioned, I don't think that person was savvy enough to track down my personal residence through all my layers of protection and it made it easier for me to sleep at night.

Get friends and family involved, tell them you'll handle reno and self manage, etc.A big part of this and gaining trust will be your history and if you eat, sleep RE 24/7.As a mortgage broker it took a while for family and friends to believe my advice was sound after starting in the industry. 

The Mexican fisherman said, “I sleep late, fish a little, play with my children, take siestas with my wife, Maria, stroll into the village each evening where I sip wine, and play guitar with my amigos.