I was told $4500 as penalties so I figured I can squeeze that in the budget somehow.

FHA does give you added protections as the buyer, which a lot of sellers are not liking (namely, they want guarantees on purchase price regardless of appraised value, and FHA will allow you to walk without penalty if the home doesn't appraise).

In most cases, I send them a letter listing the violations and giving them 15 - 60 days to vacate, depending on circumstances, and the option to leave earlier and without penalty if they find something sooner.

I am kind of panicking because this property  was a full fledged flip project put (80k of rehab) and because luck was not on my side when i put it on market in March 2020(Covid 2020 Hit).I was on a hard money interest only loan with 12 % interest and refinanced into a 30yr fixed loan with 3 yr prepayment penalty (crappy conventional loan). 

If he has a full month deposit, I may tell him to get out by the end of June with no penalty.

@William Hinsche: 1) You need to have an attorney read over any mortgage the Seller is providing 2) The terms (pre-payment penalties etc) will dictate your ability (and timeline) to refi-out.

If the tenant has a health, safety etc. reason for leaving and provides some sort of document that is good enough for us to let them break the lease without penalty (most markets are still packed with potential tenants so you won't be out a bunch of money waiting to fill the space...especially if it was already month to month).

Hello,Has anyone purchase a home using the money from a QDRO, I just got divorce last month, I know that I can use the 401k QDRO money penalty free but not tax free… pros and cons, any advice?

Either reason doesn't change the fact that your directions should NOT have been ignored.Now that the error has been made, you have a choice to be cut-throat or reasonable.Cut-throat: you should end the relationship with the PMC because even if you get them to eat the costs, they'll resent you and it'll affect their service going forward.Reasonable: acknowledge even the best people/companies make mistakes and negotiate a fair penalty with them.

I'm looking outside of SC because we have a heft property tax penalty for homes that aren't primary residence, which is going to cut my CF too deep.