I have a problem, and I'm not sure how best to resolve it. Hopefully you guys will have some ideas. Apologies in advance for the long post.

I switched from Sprint to Verizon in December 2012. I got a Moto Razr Maxx HD. Loved the phone. I average about 4 years before upgrading phones. However, about a month after I got my phone I tried to use the hotspot with encryption. Worked fine. However, when I turned the phone off and later powered it on again I could not get the phone to allow any device to connect to it if either encryption were enabled or if I tried to limit the number of devices that could connect. After several hours with several different tech support agents the only solution they could find was to reboot the phone in to the service menu and clear the cache. I often have to turn my phone off at work so this was a minor annoyance. I decided to live with this flaw. On October 4th, however, I shattered the screen on my phone. I felt I had no choice but to send the phone to Motorola for repair. I figured that as long as they were replacing the screen they might as well fix the hotspot issue. And that, my friends, is the problem.

Motorola's repair facility has had my phone since October 9th. Their customer service agents can't tell me anything about the repair other than "It's on the repair line". Last week they claimed the repair was on a "back line", meaning it was being QC'd and would ship to me no later than today. So I waited it out. Today they told me that the phone repair had never been completed and the phone was still on the repair line. Today they offered me a refund of my purchase price ($199, as I was a new Verizon customer). I really don't want a new phone, I want them to fix my phone. However, they won't even guess about when my phone might actually be repaired and returned to me. This is unacceptable to me. Frankly, my belief is if they haven't been able to fix the hotspot by now they aren't going to be able to fix it...ever.

I called Verizon after hanging up with Motorola to see what they had to say on the issue. Verizon's CS was outstanding as it always has been for me. They contacted Motorola, who told them something Motorola did not tell me: if I can find another new Razr Maxx HD at a retailer they will refund me the entire purchase price of the phone instead of the $199 I paid. The Verizon agent told me she asked the question literally 5 times to ensure Moto's CS agent meant what he said. I'm uncomfortable relying on this assertion from Moto because Moto did not share this option with me when I asked how much they would refund me. I even walked them through the scenario to explain why a refund of only what I paid for the phone when it will now cost me 5x that amount is unacceptable and they agreed this wouldn't make me whole but it was that or wait for my phone.

An interesting aside to this story: Moto told me they won't do a warranty repair if there's non-warranty damage to the phone. So if, hypothetically, my screen were minimally cracked and I only wanted a warranty repair on some other part of the phone they wouldn't do it unless I were to pay them to fix the crack as well. I thought that was a little harsh, but that didn't bother me too much. Interestingly, though, it's just the reverse when it comes to repairing the phone: they fix the warranty issue first, and if they can't fix the warranty issue they'll just say they can't fix the phone and they won't fix the non-warranty issue. Verizon got them to admit they haven't been able to fix the hotspot issue so they haven't even looked at repairing the screen yet. (I don't know how this can be true; the screen literally puts tiny glass shards in your finger if you run your finger across it.)

Neither Verizon nor Motorola have replacement Razr Maxx HD phones they can send me. I believe the phone is already out of production, so I'm not counting on either of them having one to send me ever.

So for now it looks like my options are:
1. Buy a new Moto Razr Maxx HD (assuming I can even find one) and pray Moto will honor their claims to Verizon that they'll refund me the full purchase price of the second/new phone (a COA I'm not comfortable with);
2. Buy a used Moto Razr Maxx HD (assuming again I can even find one) and pray it doesn't have any of the myriad issues people on the popular phone forums have reported over the last year (no more comfortable than option 1 and I'm probably out some money);
3. Get my phone back from Motorola only to send it to Verizon, pay the $299 fee for returning a damaged phone and see what they'll offer me from there (I don't like the unknown aspect of this course of action or being without a phone for yet another couple weeks);
4. Take the refund and buy some other phone (I don't like this option because one, I liked the model I had; and two, I'm probably out another $200-$500 that I'd shouldn't be out as a matter of principle. Although I've only done cursory homework, I don't see a phone on Verizon's site that I'd be willing to pay another $200 for over the model I have now anyway);
5. Wait on Motorola to repair my phone or decide they can't and then have them offer me no other option besides the one they're offering me now with the $199 refund -and be without a cell phone for however long it takes them to give up.

Although I've owned a cell phone since 1998 I've never had a repair or warranty issue. I'm really at a loss as to how to proceed here. Your advice is much welcomed and appreciated, guys.