While in some areas any fine may not be a big deal, being forever bared from conducting any business with HUD or with any HUD related program can be a long term loss.

I think the best option for Karin is to conduct find an investor to borrow the money from and do the rehab.Loan: $90,000Points: $3,600Interest: $6,750 (15% for 6 months)Current Mortgage Payments $3600 ( Rehab: $80,000Holding Cost $1800 ($300/mo for 6 months)Total Spent: $95,750Cash needed $5,750BACKENDSelling price: $279,000 Commissions: $16,740 Closing costs: $5,580 Net from sale: $256,680 Loan payoff: $215,000 Cash invested: $5,750 Profit: $39,530

Not to say there aren't investors here in Ag areas and may have extensive knowledge in Ag subjects, just that most RE investing just won't plow very well here, IMO.

It's because they don';t know how to conduct business that they seem to think they need "More protection".

I have done very extensive rehabs so I am not scared of them.

I'd be able to replenish the funds used for this purchase fairly quick (less than a year).I've never done a fix and flip and I've never bought a home that needs extensive renovation.

Even if there's only a little time left (eg 2 weeks or less), you could ask your lead to ask for an extension.

Many academicians have extensively studied and authored articles discussing the workings and failings of the US deposit insurance system.

:An extension request made, if so was it granted?

If you are obtaining the loan with the intent to conduct business, then watch out.As to agreeing to 10K in damages, if it was a property I was going to buy and a great deal, it probably won't bother me.