Va Loan House
In selling my house, I have a buyer with a VA Loan. Do I have to sign a VA Amendatory/Escape Clause?
I am looking for anyone that has had this experience, and/or someone with a legal background with this experience. As the seller, I don’t think I have to sign the Clause, but please stear me right if I am wrong. I appreciate the help!
FHA requires it as well.
HUD Amendatory Clause
An amendatory clause must be part of the sales contract when the borrower has not been informed of the appraised value by receiving a copy of the form HUD-92900.5B, Conditional Commitment/DE Statement of Appraised value or VA-CRV BEFORE signing the sales contract. Many State Real Estate Commissions proclaim property sales contracts that either contain the amendatory clause language in the contract itself or in anFHA financing addendum. If the sales contract contains the required language (which essentially gives the borrower an “escape” clause if the property does not appraise for at least the sales price), this disclosure is not necessary. This Clause is in Calyx POINT and is named “FHA Amendatory Clause.” References: HUD Handbook 4155.1 Rev-5, Chg 1, ¶ 3-4; HUD Mortgagee Letter 96-37 (7/16/96).
http://209.85.173.104/search?q=cache:pfE0IIJoUW8J:www.1stmortgages.com/downloads/fhadisclosureguide.pdf+Amendatory+Escape+Clause&hl=en&ct=clnk&cd=5&gl=us