I would run away from any agent/realtor or any other sales professional that attempted to pull such a fast one. 

I would get out of that property as quickly as you can and go put your money to work in a good property, otherwise your just extending the loss and pain.While I'm not an attorney, and I'm not giving legal advice, It's very common for bad properties to attempt to make things look nicer than things really are, as they want out.

If I understand it, he would be responsible for any financial loss incurred by you but you would be responsible to make a reasonable attempt to mitigate that loss (ie, get the place rented) as much as possible.   

I am both out of the area and blind, so not only am I looking to cover my butt, but to borrow some experienced “eyes” to help me complete the process.After reading a couple of blogs here, I’ve seen the term, “cooperative lease option deals”, if that helps you understand what I am attempting to accomplish.Any suggestions on finding a good lawyer, and for interviewing them would be appreciated!

The more business you do with a single financial entity, them more flexible/accommodating they will attempt to be.  

So this entire post came down to my landladies brother holding a personal vendetta, and attempting to cause problems.

Hi @Darren Finney,I'll make an attempt to explain IRR.

They could go the extra mile and attempt to speak with the prior owner if they're up for it.

I get that strategy if your attempting to wholesale a deal but it doesn't make sense when your inquiring with a wholesaler.  

Attempts have also been made at a few local banks but it turns out these banks have their own bank-specific lending rules that do not allow the refi.Thanks!