You can try salvage yards and stuff, but your best bet might be a jdm engine from japan. They have them all over ebay, I don't know what kind of quality to expect, but browse around there and see if you see anything you like. I just got mine running with a jdm, and apart from the wiring harness problems and the heater hoses (both opposite due to right hand drive), it is a very strong running engine, also had the original plugs in it, which means only 40-50,000 miles.
I got mine private party, so had no idea what condition it was in, but for $400 for the whole car and engine, couldn't pass that up.
Did they give you an amount you owe them for the work up to now?
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'88 Supra Targa 5 speed w/ '90 7M-GTE 
Currently Running Good  
For Sale: Light blue body parts, Blue interior parts all from '90 supra targa turbo manual.
Also for sale: R154 trans, brake pedal, master cylinder, booster, abs actuator, sensors, abs ecu, driveshaft, 3.90 lsd rear end, radiator, wiring, speedo cable, 8 saw blade wheels, '88 ecu, relays, cruise control actuator (bad cable), empty fuel tank, etc....
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