How do you save a deal under contract when your funding backs out?

[Victor Oden]

Hello everyone,

I have a home under contract in Portland, Oregon. It is a major fixer, but the property is on a double lot, attractive for a developer or fix and hold investor. My goal was to fix and flip, but my gap lender and then my lender backed out. How can I save the deal or at least, get my earnest back after my 10 day inspection period? I've been looking for a new gap lender, but everyone is saying their money is already in use.

[William Sing]

Hey Victor, this is a tight situation to be in! If this is an off-market deal I'd check if there are any contingencies in the contract. If you have a financing contingency you might be able to save the earnest money. If not, I'd talk to the seller about getting additional time to secure a lender.