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Updated about 10 years ago on . Most recent reply

User Stats

203
Posts
93
Votes
Bryan R.
  • Tacoma, WA
93
Votes |
203
Posts

Interesting situation. VA loan with non-refundable earnest money?

Bryan R.
  • Tacoma, WA
Posted

I've got an interesting situation, looking for some creative contract terms and/or solutions. I purchased a house at auction. Subsequently I've received an offer from a buyer who wants to buy it as-is. The house is currently not financeable. It needs a little work to pass appraisal and underwriting - furnace repaired/replaced, few pieces of rotten trim, maybe a roof patch, septic pump per county requirements. 

The basics of the offer: VA loan, buyer to do all necessary repairs themselves at no cost to me.

Issues I see and would like to address:

1. Earnest money. I would like to get some form of non-refundable earnest money in case this deal goes sideways. VA amendatory clause makes that difficult. Anyone know a way around that in this situation?

2. Anti-Flipping regs. Normally not an issue but in this case proposed closing date would be less than 90 days and I will be unable to document repairs.

Other pitfalls I'm missing?

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