In real estate, a short sale occurs when a bank or mortgage lender agrees to discount a loan balance due to an economic hardship on the part of the mortgagor (i.e., the seller). Circumstances determine whether or not banks will discount a loan balance. These circumstances are usually related to the current real estate market climate and the individual borrower's financial situation. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing.
This form is a sample of an Addendum to a standard real estate sales contract in order to incorporate the short sales provisions. This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
Salt Lake Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate serves as an essential document in real estate transactions involving short sale properties in the Salt Lake City, Utah area. This addendum outlines specific terms and conditions that are unique to short sale transactions, ensuring clarity and protection for both buyers and sellers involved. Here is a comprehensive description of what this addendum entails: 1. Purpose: The Salt Lake Utah Short Sale Addendum is designed to supplement the standard purchase and sale contract for real estate, addressing specific details and contingencies associated with short sales in the Salt Lake City area. 2. Price Negotiations: This addendum includes provisions for price negotiation, considering the intricacies of a short sale. It outlines the process by which the seller's lender approves the agreed-upon sale price and any potential adjustments that may arise. 3. Timelines: As short sales typically involve coordination with multiple parties, including lenders and foreclosure processes, this addendum establishes specific timelines for various stages of the transaction. This ensures that the buyer and seller are aware of important deadlines to adhere to throughout the process. 4. Contingencies: The addendum outlines contingencies that may arise in a short sale transaction, such as the requirement for seller's lender approval of the sale, title clearance, and any necessary repairs or inspections. These contingencies are crucial for protecting both parties and ensuring a smooth transaction. 5. Disclosure Requirements: The Salt Lake Utah Short Sale Addendum may require additional disclosures specific to short sales, providing buyers with essential information about the property's financial situation and potential risks associated with the transaction. Types of Salt Lake Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate: 1. Conventional Short Sale Addendum: This type of addendum applies to short sales involving conventional financing. It includes provisions and requirements outlined by standard lending practices, ensuring compliance with applicable regulations. 2. FHA Short Sale Addendum: When a short sale transaction involves a property financed with an FHA loan, this addendum is used. It includes specific provisions mandated by the Federal Housing Administration to facilitate the short sale process and protect both the buyer and seller. 3. VA Short Sale Addendum: For short sale transactions involving properties financed with VA loans, this addendum is required. It outlines provisions outlined by the Department of Veterans Affairs to enable the VA lender's approval and ensure a smooth transaction. In conclusion, the Salt Lake Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is an essential document tailored for short sale transactions in the Salt Lake City area. It details the specific requirements, contingencies, and timelines involved in purchasing short sale properties, safeguarding the interests of all parties involved in the transaction.Salt Lake Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate serves as an essential document in real estate transactions involving short sale properties in the Salt Lake City, Utah area. This addendum outlines specific terms and conditions that are unique to short sale transactions, ensuring clarity and protection for both buyers and sellers involved. Here is a comprehensive description of what this addendum entails: 1. Purpose: The Salt Lake Utah Short Sale Addendum is designed to supplement the standard purchase and sale contract for real estate, addressing specific details and contingencies associated with short sales in the Salt Lake City area. 2. Price Negotiations: This addendum includes provisions for price negotiation, considering the intricacies of a short sale. It outlines the process by which the seller's lender approves the agreed-upon sale price and any potential adjustments that may arise. 3. Timelines: As short sales typically involve coordination with multiple parties, including lenders and foreclosure processes, this addendum establishes specific timelines for various stages of the transaction. This ensures that the buyer and seller are aware of important deadlines to adhere to throughout the process. 4. Contingencies: The addendum outlines contingencies that may arise in a short sale transaction, such as the requirement for seller's lender approval of the sale, title clearance, and any necessary repairs or inspections. These contingencies are crucial for protecting both parties and ensuring a smooth transaction. 5. Disclosure Requirements: The Salt Lake Utah Short Sale Addendum may require additional disclosures specific to short sales, providing buyers with essential information about the property's financial situation and potential risks associated with the transaction. Types of Salt Lake Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate: 1. Conventional Short Sale Addendum: This type of addendum applies to short sales involving conventional financing. It includes provisions and requirements outlined by standard lending practices, ensuring compliance with applicable regulations. 2. FHA Short Sale Addendum: When a short sale transaction involves a property financed with an FHA loan, this addendum is used. It includes specific provisions mandated by the Federal Housing Administration to facilitate the short sale process and protect both the buyer and seller. 3. VA Short Sale Addendum: For short sale transactions involving properties financed with VA loans, this addendum is required. It outlines provisions outlined by the Department of Veterans Affairs to enable the VA lender's approval and ensure a smooth transaction. In conclusion, the Salt Lake Utah Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is an essential document tailored for short sale transactions in the Salt Lake City area. It details the specific requirements, contingencies, and timelines involved in purchasing short sale properties, safeguarding the interests of all parties involved in the transaction.
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
