TLC means Tender Loving Care, it's a very nice way to say that the home isn't in the best condition, but with a little bit of TLC it can be made into a real nice looking home. They don't feel it'll meet FHA or VA appraisal standards, and since it's a short sale I bet the seller isn't willing to put any of their money in to fix it up to meet FHA or VA appraisal standards. It also looks like a law firm is involved handling it, and time is money for lawyer's, so with a hard money purchase it'll cut down the difficulties a buyer would have with the appraisal portion since hard money lenders aren't as particular about the condition of the property as FHA or VA financing, or even regular conventional financing.
One thing the seller may not realize is that the home could be purchased with a "rehab" type mortgage like FHA's 203k rehab loan program or Fannie Mae HomeStyle Renovation loan program, but those programs take a little bit extra time and involve more variables all due to the "construction approval" portion of the loan, and so again maybe the seller's law firm doesn't want to mess around with buyers who have those types of mortgages.
Find a realtor and they will help you through the process. Good luck!
Probably not possible to buy for a bargain if they're planning to flip it after they get an approval at a lower sale price.
Do you have a Realtor helping you? If not, you're welcome to sign up for a free ListingBook account on my website and you can get automatic updates of "true" bargains, bank owned listings.
All the best,
Alma Rose Kee, PA
Future Home Realty