Appraisal subject to repairs

[Kelly Madden]

My husband and I are buying a VA foreclosure with a conventional loan (cash would have been nice, but wasn’t an option at the time). The appraisal came back subject to repairs and the VA contract states that no repairs will be made by the seller and the buyer will have to escrow repairs. The lender won’t escrow repairs having to do with wood rot and roof issues. The contract also states that the buyer is not to make the repairs and the VA will cancel the contract if the find out. Our inspection period ended yesterday, of course. What are our options here? Help, please! I need your creativity!