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.
A Guam Short Sale Addendum to the Contract for the Price, Purchase, and Sale of Real Estate is a legal document that outlines additional terms and conditions specific to a short sale transaction in Guam. This addendum serves as an extension to the original contract, providing valuable information for all parties involved in the real estate deal. 1. Purpose: The Guam Short Sale Addendum is primarily designed to address the unique aspects and considerations associated with a short sale transaction. It aims to protect the interests of both the buyer and the seller by establishing clear guidelines for the sale. 2. Key Contents: a. Seller's Representation: This section requires the seller to disclose that the property is being sold in a short sale, confirming the financial hardship that qualifies them for this type of transaction. b. Lender Approval: The addendum specifies that the buyer's offer is subject to the approval of the seller's mortgage lender. It outlines the process and timeline for obtaining this crucial approval. c. Buyer's Acknowledgment: The buyer acknowledges the possibility of delays or potential complications due to the short sale process, agreeing to extend the closing date if necessary to obtain lender approval. d. Acceptance of Lender's Terms: In case the lender approves the short sale, this section confirms that the buyer and seller agree to abide by all terms and conditions set forth by the lender. This includes any changes to the sales price, repairs, or other conditions. e. Supplemental Addendum: If there are additional provisions or conditions specific to the property or lender's requirements, a supplemental addendum may be attached to further define the obligations and responsibilities of the parties involved. 3. Types of Guam Short Sale Addendum: While there may not be specific variations of the Guam Short Sale Addendum, the content may vary depending on the circumstances of the transaction, lender requirements, and negotiation between the buyer and seller. However, the key elements mentioned above generally remain consistent. In conclusion, the Guam Short Sale Addendum to the Contract for the Price, Purchase, and Sale of Real Estate plays a vital role in documenting the unique terms and conditions surrounding a short sale transaction in Guam. It protects the interests of all parties involved, ensuring a transparent and smooth real estate transaction while adhering to the legal requirements specific to Guam's real estate practices.
