Source and Seasoning the Down Payment: Conventional lenders (for the most part) will require that you verify, that, for AT LEAST 60 days, you have had: either the funds in your account OR you have earned (maybe a bonus at work, business profits, ect) or are entitled to funds (retirement savings account, inheritance, award prizes, proceeds from the sale of an assett, ect) and can prove where you obtained those funds from to show they are not a new debt or ineligible funds (funds that can't be sources or borrower funds).As to the LTV/CLTV: you will not be able to have the agreement between you and your fathers friend recorded against the property at time of closing, because of the CLTV restrictions, you can borrower 60% from conventional financing and get a 15% 2nd mortgage from your fathers friend, but, this would not normally make sense to do since the 1st mortgage is willing to go to 75% anyway.

The only other option I cN  think of  is to file a small claims  and at the same time a lis pendes or whatever it is called to put a cloud on title so she cannt Grant a clear title until small claims is resolved.If you do not win in small claims she could possibly countersue for damages for impeding the sale.If you want to get revenge, do not pay the mortgage and pocket the rent.  

If they sue you, then you hire an attorney, but I think he'd have a hard time winning a suit to compel you to give earnest money on a house you aren't going to buy, even if he put something like that in the contract

#Winning. 

Congratulations on the first win, Spencer!

Thanks @Nathan Paisley RDPD is the best book so far but I'm starting Confessions of a Real Estate Entrepreneur: What It Takes to Win in High-Stakes Commercial Real Estate this weekend.

No one can say what the outcome of a bidding will be but I myself see it as a lost effort where even if I do win a bid it I will not get a property at a good enough price to make it worth the entire effort but its up to you if you really want to pursue this method of buying properties.

From my personal library, I would also add just a few:"How to Win Friends and Influence People"- Dale Carnegie.  

Perhaps you could get an investor to buy the condo at the loan balance through a contract for deed and get out of managing a no-win property from a distance.

I have 1 out of 2 chances of winning 100x the money.