2.5L engine replacement options

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I have an 05 2.5L SOHC. The timing slipped and all the intake values are stuck open. In addition a borescope shows that it looks like something has been rattling around in #1 taking divots out of the top of the piston head.
Options...
1) Pull heads and have a machine shop replace valves and guides? The piston head may be ok with some scaring
2) Get heads from a junk yard and just have them resurfaced?
3) Try to find a local engine
4) I see there are companies that sell low mileage engines direct from Japan. Any feedback on these?

I'm in California so any engine change needs to meet the emissions sticker requirement (can't change engine model, etc).
 
I would be looking for a lower mileage replacement motor with the same emissions legal numbers (proper year).
Based on the information you have provided about your current motor there is bound to be more un-seen damage internally, bent rods, lost of metal shavings that has damaged the bearings and such. You will probably be money ahead with an motor swap. I do not know if Rising Sun Motors is still in CA but if they are not there are other companies that import low mileage Japanese motors.
 

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