The FHA/VA Amendatory & Escape Clause is a lender document that each party in the transaction must sign stating that the mortgage being applied for is the only loan being financed on the property; there are no “secret” loans or down-payment sources being made under the table. The Escape Clause – in layman’s terms – notifies all parties that if the appraised value comes in LOWER than the agreed to purchase price, that the buyer is under no obligation to move forward with the purchase.
Keeley Wagner is a licensed Realtor with The Connors Group at Windermere Group One and a former Licensed Closing Agent. Check out http://www.aprilconnors.com for more information.
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