Can someone explain this to me? I've never dealt with an FHA, and now understand why many people shy away from them.

Basically, I have the seller of vacant land. Buyer has had one issue after another. Have had to change lenders, and have also decided to purchase a modular home along with the land. I've received this amendatory clause today, after I found out the appraisal came in $500 below. They've supposedly agreed to pay the difference out of pocket.

Any input?

It's simply put that the buyer can back out of the contract without losing their earnest money if the appraised value comes out less than the selling value.