Just want to share an experience that I know is not new to this business.  I just had to go through it with a client the other day.  After months of working with lenders, we're on the second one now; and finally getting acceptance on the short sale we got down to doing insoections.

     If only sellers would disclose defects in properties, we could make life a whole lot simpler.  The defects that became horribly apparent upon a closer look, that being the professional inspector's job, not only blew the deal on this house, but on any others for the moment.  Why, do you ask?

     The financing was one of those 100% programs with Bank of America Acorn Program.  As of Friday last week all purchases had to be locked down with rates, addresses and contracts.  Well, we had all of that in place, but when the house fell apart, (literally from underneath) so did the financing.  As of Monday morning all new deals had completely new underwriting guidelines.  No more 100%, etc. etc.  The buyers' loan can not be transferred to a new property.

     So now we are back to square one.  Find financing, and finding a home.  I guess the good news is that they found out about the full extent of repairs before they owned it.  An extra $20K just isn't in order for repairs of the new abode at this time.  So continue doing those inspections, and please ask seller's to disclose the known problems, instead of trying to cover it up with bleach!