The hard thing about an engine you know has been badly abused is the damage internally could be worse than normal. For instance, if the rings have built up carbon they could take out a cylinder badly enough it couldn't be honed and re-ringed (scrap). If the recently replaced timing chain has only 35k miles on it and there truly is sign its worn again, that soon, that would be hard to do and could be a sign of really, really bad internal state of affairs.
Is there any sign of oil consumption between oil changes? If not, that would speak well to the state of the cylinders.
Perhaps shop around for a used engine at lower cost (how much of that $12k quote is his labor and parts, and how much was the cost to procure the used engine?).
Another idea, for how to decide whether to rebuild or replace, is to do what Iconic suggested and send an oil sample for analysis, and also have your mechanic take photos of your engine with a valve cover off, and of the timing chain tensioner visible through the inspection cover. Share those here for review.
Note that a good condition FJ, purchased for $9.5k + $12k engine replacement is still a reasonable price, all things considered, so long as you plan to run it for some time.
Norm
Is there any sign of oil consumption between oil changes? If not, that would speak well to the state of the cylinders.
Perhaps shop around for a used engine at lower cost (how much of that $12k quote is his labor and parts, and how much was the cost to procure the used engine?).
Another idea, for how to decide whether to rebuild or replace, is to do what Iconic suggested and send an oil sample for analysis, and also have your mechanic take photos of your engine with a valve cover off, and of the timing chain tensioner visible through the inspection cover. Share those here for review.
Note that a good condition FJ, purchased for $9.5k + $12k engine replacement is still a reasonable price, all things considered, so long as you plan to run it for some time.
Norm