Such rip offs really need to be reported and often money is recovered.

If you lose it, it is not such a large amount that you cannot recover.

BTW, I'm not interested in the Fannie Mae program where you can get 70% of your PURCHASE price back at < 6 months - I need to get traditional financing where we recover 70% of APPRAISED value, as that's a big part of our equity play since we're buying distressed, rehabbing, then holding for rent. 

I want to hit the ground running once I am fully recovered

I just wrote my first post - went to preview - and then lost it - don't know how to recover although it's showing that I started a post.

For example, if you were suing on mold that you discovered in the property, you should get a real estate attorney and have him or her prepare an affidavit that a mold remediation expert can put forward about the damages the mold caused in the property and why the previous owner knew, should have known or was deliberately unaware of the mold to your detriment.My state also allows attorneys fees on improper disclosure, meaning you can go really hard on these sorts of actions if you're going to recover, because the attorney can get paid $10,000 of attorneys' fees even if your recovery is only $4,000, for example. 

But, the problem is that in order to execute a BRRRR properly, you need to have so many skills and know so many aspects of the process that it can be completely overwhelming to someone who is brand new and it is very easy to make huge mistakes from which it may be too hard to recover.

smart man.... that was my plan if i couldn't find another answer. i know they will negotiate, just don't understand why they wouldn't do a partial release to recover most of the money. i've tried twice but i get the feeling i'm just dealing with lazy, underpaid government employees manning the phone at the comptroller's office.

The loss they are taking on the flipping business is basically a years worth of profits on their core business, so not hard to recover from. 

Though that recovered by 2012, the time was lost.