Lessons learned on what TO DO and what NOT TO DO!
First of all, don't do it! Now that was the easy part. Second of all, DON'T DO IT!
Always do the due diligence prior to submitting a contract and don't use RD for the loan. I knew better then trying to get a foreclosed, as is, property to close with an RD loan. But trust me, it wasn't my idea nor my guidance.
An RD loan is the most difficult to use when dealing with repairs on a home in good shape, let alone a property that needs some TLC. Even though the home appraised well above the sale price, RD continued to be the beast of burden and the APPRAISER was no help. The first appraisal made no mention of some items, so when we thought we were finished, in comes another appraiser from the same company and rips the house a new ars and acted like a contractor. Lesson learned, if you don't think it needs to be repaired, REPAIR IT!
DO use a good lender that knows the "finer" details of an RD loan and has the CLIENTS best interest in mind and not be so focused on getting a loan, but the best loan for the entire deal. RD wasn't and isn't the loan of choice and to top it off, the client even turned around and said, "Jeez Mike, if I knew it was like this, I would have done FHA or something else".
Foreclosures and Short Sales require the buyers to be prepared to come out of pocket for repairs, no matter what the loan product is and they also need to be aware that there is a heavy risk involved with spending money on something that's never guaranteed to close.