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.
The Arkansas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legally binding document designed to address specific requirements and conditions related to short sale transactions in the state of Arkansas. This addendum is utilized when a seller is attempting to sell their property for an amount less than the outstanding mortgage balance, with the lender's approval. It serves as a supplementary agreement to the main purchase and sale contract, outlining the unique terms that apply to short sale transactions. Some important keywords relevant to the Arkansas Short Sale Addendum include: 1. Short Sale: This refers to a real estate transaction where the property is sold for less than the outstanding mortgage balance. 2. Addendum: An additional document that modifies or adds specific terms to an existing contract. 3. Price: The agreed-upon amount for which the property will be sold in the short sale transaction. 4. Purchase and Sale: The legal agreement between the buyer and seller for the transfer of property ownership. 5. Real Estate: Property consisting of land and buildings. 6. Contract: A legally binding agreement between two or more parties. 7. Lender: The financial institution that holds the mortgage on the property being sold in a short sale. 8. Mortgage: A loan secured by property, typically used to finance the purchase of real estate. There may not be different "types" of Arkansas Short Sale Addendum, but the content within the addendum can vary depending on the specific requirements of the lender and the circumstances of the short sale. Different lenders may have their own specific addendum forms, but the overall purpose remains the same — to address the unique terms and conditions of a short sale transaction. When utilizing the Arkansas Short Sale Addendum, it is crucial to consult with a real estate attorney or a qualified professional familiar with the specific regulations and requirements in Arkansas.
