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Head Repair vs. New/Rebuilt Engine 2002 Focus SOHC "The Grenade Engine"

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Got desperate to buy a car quick after about 3 or 4 were sold out from under me (typical CL $1500 - $2500 car market).

Bought a 2002 Focus SE SOHC with the Split Port motor. This link pretty much says it all: https://www.google.com/search?sourceid=chrome&ie=UTF-8&q=complaints+focus+SOHC+engine

Head gasket blew after 2000 miles, all the coolant disappeared within roughly 300 miles. I knew it was leaking a little and was keeping an eye on it. I've never had a head gasket problem and every time a car overheated on me in the past the dashboard temp gauge would warn me, but apparently that doesn't always happen, for many reasons, with head gasket issues.

I hadn't met my new mechanic when I bought the Focus (good one finally...I think). He tested my engine compression and told me it appeared my bottom end was ok at the moment. He said I would need an entire Gasket Kit and a Remanufactured Cylinder Head or have mine resurfaced, but he suggested the Reman.

He knew all about the valve seat issues and exploding pistons (hence, the title) on the SOHC and said those were more common than the head gasket. We were about to get into specifics, but then he said he wouldn't do it unless I insisted. Said 3 out of 5 flood damaged cars he did had engines fail within a few thousand miles. Apparently, any coolant in the bottom end could have resulted in the steel bearings developing "hot spots". He said the car could last forever or fail within 300 miles, no way to know without seeing the bearings directly. I also saw some internet posts suggesting oil analysis and all kinds of things. I have three options:

1. Buy Ebay Aftermarket cylinder head that is stronger than OEM, meets AERA specifications and fixes valve seat problems. Buy head gasket kit. Do timing and water pump while in there. If I did this I would put in some kind of anti wear oil I guess, no idea which is best though (mobil 1 15-50 or high mileage 10w-40?)

Cost: $300 Labor, $300-450 parts

2. Engine swap - Less labor than rebuild, engine still has design flaw on valve seats without swapping the head.

Cost: $ 500 labor, $1450 for 37k engine (these are hard to find because they fail so much. Lots of SOHC Focus with good body blown engine).

3. Engine Rebuild - Best if (BIG if) done perfectly from what I can gather. New head, all gaskets, cams, rods, pistons, rings, bearings, etc.

Cost: $600-800 parts, no idea on labor, I'm guessing at least $1000.

What to do? Thinking about doing the head and just telling someone what I did to the engine and seeing if I can sell it. Right now it isn't worth much more than scrap because these fail so much no one needs this as a parts car either.
 
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Had a buddy had one blow and he sold it to the mech to to a engine swap on his own time
Tough spot its a 10 yr old car to me it would have to be pretty good shape to be worth it IMO I'd buy a Saturn S series from that age and move on
 
You really didn't specifically say, but sort of inferred that this is a flood damaged car..?

Personally I would try to avoid dumping money into it if at all possible. I'm surprised you can't find a new motor, try looking up north where cars rust away in 10 years or less.
 
I would not dump any money into a flood damaged car with a pos engine. If you were in the 1500-2500 range when you bought it, just buy another car that isn't a total piece of crap instead of putting that money back into the focus.
 
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