+2 votes
asked in FHA Loans by
I am in the middle of the loan process with Cross Country Mortgage Brokerage in Schaumburg.  I get a condition that needs realtors, sellers, and my signature and is called FHA AMENDATORY Clause. I asked my loan officer at least 5 times what a FHA AMENDATORY Clause means. I get different answers every time . I asked a processor from the Walden street branch of the the Cross Country Mortgage branch and the processors tells me that I need to talk to my loan officer. She says she cannot tell me because only licensed loan officers are allowed to explain it. I then reseached Cross Country Mortgage and they had the worst reviews. I think nobody at the Walden street branch in Schaumburg Illinois knows what the FHA AMENDATORY CLAUSE is. Can someone explain to me what the FHA AMENDATORY CLAUSE IS and is it supposed to be a secret?

1 Answer

+1 vote
answered by (40.3k points)
FHA Amendatory Clause is a form that buyers, sellers, buyers realtors and sellers realtors all sign. The main purpose is to protect the home buyer that the real estate contract can be canceled if the FHA Home Appraisal does not come at the real estate purchase price. All earnest moneys to the home buyers needs to be return. This form is mandatory on all FHA Loans.