It's important to do this to avoid misunderstandings and to protect both you and the person lending you the money.One way to determine the terms of a private money loan is to look at the terms of a similar loan from a traditional lender.

I would guess that the overwhelming reason you lost several bids is because your bids were not the highest.But if you are asking for closing costs and it is not common in your area to ask for closing costs or most other buyers are not asking for them, then it is possible the seller could misunderstand your offer and accept a lower one.

Insurance also doesn’t protect you from misunderstandings, especially those made in writing and email.

Not sure if there’s something I’m misunderstanding, but if you have the equity for a refi then you have the equity for a HELOC as they are both based on appraised value.

Thanks for the links, by the way.The whole debate comes from a very common misunderstanding, common even among CPAs who are not real estate specialists.

@Brett Robison maybe I’m misunderstanding you but it doesn’t seem super clear to me.

What am I overlooking, misunderstanding, or just plain dumb on?

Don’t misunderstand what I am saying here.

I HAD AN ACCEPTED OFFER per Josh M and you reneged PLAIN and SIMPLE there was no misunderstanding or miscommunication mistake as you tried to put it. 

Otherwise a lot of detail gets lost in all of the "where to's and what for's" and serious misunderstandings make attorneys rich.