To bet on "yeah they said there gonna do that buuuuut" seems a bit Pollyanna. 

Local credit union or bank is the best bet.

Look back at the title history of properties in cheap markets or and I bet you’ll  see many of them have changed hands every few years. 

My point is the refi might not make sense at that rate, not sure because the credit and LTV will effect the cost, but willing to bet you can do MUCH better in costs elsewhere. 

I think focusing on cutting all costs and hustling is your best bet.

You bet.

For confidentiality reasons, last names were turned to initials, but should anyone like to talk with these investors, we can connect them with you. 

I'm ready to grit my teeth and ride this out betting that the tenant will drop it, OR that the claim will not move forward because he will not be able to "serve" me (I live in Portugal). 

You’ll build experience and equity without betting everything on one complicated play.

Personally, I think sticking with lighter neutrals is usually the safest bet for flips since it appeals to the widest pool of buyers.