Buyer switched to FHA loan

[Chad M.]

We listed our home as cash or conventional only. accepted offer for conventional. 5 days later we found out from the appraiser they are getting an FHA loan. Do we have any legal action we can take. This is not the only issue we have had with these buyers. We wanted to cancel on our end about 3 days in but didn't leave a back door out.

[Patrick Britton]

@Chad M. you could have a good case.  like someone here said, it depends on your contract.  I've had to deal with some shady agents in my career, and things always worked out when I brought it to the attention of my managing broker who in turn brought it to the attention of the other agent’s managing broker.

There's only one reason why someone would be getting an FHA appraisal and that is if they're using the FHA program itself. There are so many things additionally deficient with FHA loans that frankly, I think you have very good cause to get their earnest money. Clearly, the buyers and likely their agent are trying to pull a fast one which is the same as fraud.