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 District of Columbia Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that forms an integral part of the real estate transaction process. This addendum specifically relates to short sales within the District of Columbia, providing necessary details, protections, and obligations for both the buyer and seller involved in such transactions. As the District of Columbia has its specific laws and regulations governing real estate procedures, this addendum ensures compliance with the local rules and adds additional provisions to address the unique circumstances of a short sale. Keywords: District of Columbia, Short Sale Addendum, Contract, Price, Purchase, Sale, Real Estate There might be variations or types of the District of Columbia Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate based on the specific requirements or circumstances. Some potential types include: 1. District of Columbia Short Sale Addendum for Residential Properties: This variation of the addendum is designed specifically for residential properties within the District of Columbia. It may include clauses regarding the buyer's inspection rights, financing contingencies, and any applicable local disclosures, among other relevant details. 2. District of Columbia Short Sale Addendum for Commercial Properties: This type of addendum is tailored to short sales of commercial properties within the District of Columbia. It may include considerations for zoning regulations, environmental assessments, and any specific obligations related to commercial real estate transactions. 3. District of Columbia Short Sale Addendum for Condominiums: Condominium properties often require additional provisions due to their unique ownership structure. This addendum may address issues related to condominium association assessments, board approvals, and any specific disclosure requirements for condominium sales in the District of Columbia. 4. District of Columbia Short Sale Addendum for Cooperative Apartments: Cooperative apartment sales differ from traditional real estate transactions. This addendum may include clauses that pertain to cooperative board approvals, transfer fees, and any restrictions specific to cooperative apartment sales in the District of Columbia. In all types of District of Columbia Short Sale Addendums, it is essential to consult with a qualified real estate attorney or agent to ensure compliance with local laws and regulations and to protect the interests of both parties involved in the transaction.
