Escrow Holdback is the answer.
Yes, the requirement of repairs prior to closing should have been expressed prior to contract. We have a plan where you put your funds with bids to repair the home at the title company and with our Underwriters. Once approved you close in 30days. Closing day the realtors and sellers are paid in full. You then have 15 days after the closing to get the job done. Once my appraiser verifies the job is complete and has taken pictures to confirm we are done! I can do this not only on foreclosures but any resale home in TEXAS. Hope this helps future buyers. AP