Question

You may want to skip all the intermediate steps and go straight to a new or used engine.

I would carefully inspect the rest of the car in case it is not worth fixing.

Are you saying there is likely more internal damage?

What do you think? You have seen the car but by your word the damage is worse than expected. Don't drop 5 grand into it only to find the "frame" is bent.

If the chain came off and the engine rotated you are looking at the possibility of bent valves.

That's my problem. I bought the car, bought airbags and a complete front clip. I'm deep already. Now finding this damage is insult to injury.

I have bought numerous salvage cars from across the country. This's is the first time I have been mis-led by a dealer. I know it's possible and I have been lucky in the past. But its dealers like this one that shouldn't be in business. My bad. Car has less then 10k on it and I do most of the repairs. Even with that I am upside down. Anyone need a front clip?

It sound like a huge damage - you might want to re-sell it out at a loss rather than working on it till no end.