Question 1 & Explain Answer Please

A buyer contracts without contingency to purchase a home for $800,000 and the seller accepts. The house is appraised at $700,000 and the lender agrees to make an 80% loan-to-value loan. The earnest money deposit of $16,000 is in an escrow account. Which outcome is correct if the buyer cannot provide the additional $224,000 needed to close?

A - The contract is voidable because the property is not worth the sales price. B - The seller can cancel the contract and keep the earnest money deposit. C - The seller will adjust the sales price. D - The lender will cover the difference.

Question 2

A buyer is purchasing a bank-owned property. The broker explains the type of deed she will be receiving only promises that the bank has the right to sell the property and that they have not encumbered it. What type of deed will the buyer most likely receive?

A - special warranty B - general warranty C - trustee's deed D - deed in lieu