Predatory Lending... what should I do about it?

So my husband and I found an amazing home that needs to be rehabbed. Totally unlivable, needs new foundation etc. We love it. It's in a great area we want to invest in. However, they will not accept a 203k, then the listing agent says- but I will privately fund the loan for you. WTF?! The house is bank owned. The only thing I can think of is that the bank has to sell the house for over 150 to make back their money... and because the house won't appraise at that, they can't go through FHA. However, how can a bank (of all places) sell a house for more than it is worth (in another banks eyes?) Additionally, my agent is being dodged by everyone trying to find out who holds the title to the house and get a straight answer as to why they will not accept a 203k. They keep saying, "I will have to call you back."

I love this house and neighborhood and would pay the appraisal value and go through the 203k. The house has been on the market for 2 years- maybe more. It was foreclosed, went auction, didn't sell, was listed for sale, the listing expired (or something like that)... I am basically chasing these people down to sell me the house.

I have called the real estate commission in my state to file a complaint. What else can I do? The broker won't even call my agent back.... but mostly I am furious that the listing agent said he would finance the private loan. Am I wrong to feel this way?

Thank you in advance.