Did you apply the current rents toward your income to qualify?

You'll learn the same stuff, if not more, applying that money to a down payment on a property, and then you'll still have the property at the end, with the mentor program you'd have nothing.Anyway, I can recommend a couple of real estate specializing attorneys in Rhode Island I have used for multiple transactions, and will PM you their names/info.

Great job to all involved.

The decision you face is almost the same as the one I had about two years ago...right down to about the same dollars involved.

Because there is an entire short sale process involved that no one involved currently seems to understand, it would be best to bring this to a good short sale realtor, or attorney or negotiator to get it moving in the right direction. 

@Tim FosterYou can apply for a HELOC and you won't be charged interest on funds until it is withdrawn from the HELOC.Normally when you speak with a lender - he will ask you where the funds will come from.

I will tell you that you will need to learn some new skills and habits as well as getting the whole family involved. 

If from anyone other than your spouse, the IRA will need to be setup as beneficiary IRA and annual distributions based on your life expectancy will apply, so keep this in-mind when investing the beneficiary IRA in real estate. https://www.irs.gov/retirement-plans/plan-particip...

Also if you applied and were denied it would probably be a year before you tried again at which point the inquiry comes off your report

Based on this guys behavior, there was more than that involved.