California Appraised Value Versus Home Sale Price

California VA home loans, VA mortgage involves a lot of rules for all sales contracts include language referred to as the VA escape clause. It is an escape clause of the borrower, the appraised value to the sale price of the property when it comes down to buying a private home, is the legal means of walking away.
In particular, the Department of Veterans Affairs, the VA Lender's Handbook, Chapter Nine;
Sales contract for the purchase of NOV (notice Value) signed by the veteran, "must be included in the contract, or to the item to be replaced.
"It is clear that the provisions of any other agreement, however, that the penalty should not have any serious money confiscated or contract or otherwise, or the value of the excess of the purchase price, you are obliged to complete the purchase of the property described in the agreed Veterans reasonable value of the property determined by the Department of Interior. buyer, however, the Department of  Veterans Affairs was established by the amount of the reasonable expenses in connection with the consummation of this agreement and continue to have the privilege and option. (Authority: 38 USC 501, 3703 (c) (1)) "
What does this mean?
First of all, the value of which is estimated selling price of the borrower has the right to cancel the sale without penalty. In such cases, the borrower may be required to forfeit the money.
Second, the escape clause, regardless of the original contract signed by the buyer and the seller entered is valid and enforceable. "Sales contract for the purchase of NOV (notice Value) before the veteran is signed, it must be included in the contract, or changes in the following paragraph ...", it is the state language of the
In many cases the value of the borrower's purchase contract was signed after the notice will be viewed. In such cases, the borrower is no longer able to purchase the property value has appreciated the decision and the home. First, the kind of appreciation for those who did not, even though the selling price of a home assessed at a higher value of the borrower and the seller is free to sign a contract stating that the last line of escape, said.
Estimated selling price less the value of the borrower's pocket the difference (which can not be funded), but would be willing to pay the sales are not automatically canceled.