Honda Accord 2004 - Replacing Engine
 

I have been told that my 2004 Honda Accord needs a new engine. I went too long without an oil change, and the car stalled. When checked, the oil just about touched the tip of the dipstick. After adding more oil, the mechanic said that the oil was black (mentioned something about carbon) and that I would need a new engine.
He said he could get a new one from a junkyard (with 70,000 miles, - my current mileage is 138,000).

Is this the only choice I have? Can the engine oil be flushed/drained before going this route?

Also, if replacing the engine is my only choice, what are the questions I need ask the mechanic? What do I need to know? Can I ask for a warranty? Are there any papers/information that I should note down before and after engine replacement?

Also, what does this do to the car's resale value?

If the engines not knocking I would try to save it. Take it to a mom and pop shop and get a second opinion