How to Protect Buyer from Pre-Settlement Expenses in an "As-Is" Sale?

How to Protect Buyer from Pre-Settlement Expenses in an "As-Is" Sale?

When representing a buyer who is getting involved with a foreclosure, or any other type of transaction which claims as-is, or seller will not make any repairs, or U&O is the responsibility of the buyer, how do you protect the funds that will be spent before settlement occurs? 

For example: You get your buyer under a contract with a foreclosed property. During the escrow period, the lender steps in and says some existing termite damage needs to be repaired, and the Township steps in and says the front walk way needs to be resurfaced. What happens when the buyer drops some serious cash to correct the issues but STILL doesn't end up making settlement? Does all that cash go down the drain? Is there anyway to protect against it?