change of financing-how does it affect me

[Account Closed]

My buyers signed a contract to pay cash for the house, and we were to close Friday (verbal agreement), originally on the 30th by contract.
The agent just called to say now they want to finance part of the purchase because they need to do repairs and don't have the extra if they pay all cash. She said she thought they would get a conventional loan, but he is retired military, so my guess would be VA loan, or even FHA.

How will that affect me, and will I have to put any money in, therefore reducing my net? How much?
And since there is this financing change, what are my options? Can I reject this change? Is this considered a new offer? Can I reject the contract without penalty?

At this point, I really don't know what to do.
My house was listed at the very low end of comps, and I even agreed to a reduction to sell it to them. If this new financing costs me money, I think I want to reject it. I listed mine at 119K, agreed to 115. With her commission and closing costs, I get about 110K The next closest one is listed at 124,900. It’s a little smaller, but has a few things mine doesn’t, including no neighbors to the west or south.

Thoughts? Ideas?
Thanks,
Ofgift

[J Scott]

I'm confused...

Did you originally have a written contract to sell (for cash) on June 30? And then they said that they'd pay cash and close on Friday?

If that's the case, at least in my state, contracts for real estate are only valid if they are in writing, so the verbal offer to close on Friday would be meaningless.

As far as switching from cash to financing, obviously that poses additional risk to the deal. But, ultimately, if there is no financing contingency in the contract, whether they pay cash or finance shouldn't matter to you -- AS LONG AS they can actually close. Of course, they can't ask for anything additional from you that isn't in the contract (closing costs, etc), but you can't really stop them from attempting to get financing if they can still close on time.

If they can't close by the 30th (or whatever is in the written contract), then you can keep their earnest money, but you probably don't have much recourse in the meantime.

In the future, for cash offers, get a LARGE earnest money deposit (at least 5-10%, if not more), get a quick closing (why drag it out if they're paying cash), and get a POF before you accept the offer.