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 Hawaii Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document specific to the state of Hawaii that is used when dealing with short sale transactions in the real estate market. This addendum is crucial for both buyers and sellers involved in the process, as it outlines key terms and conditions related to the short sale transaction. One type of Hawaii Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is the Standard Addendum. This addendum provides a general framework for the short sale process and includes important clauses related to the sale price, purchase terms, and contingencies. It also specifies that the transaction is subject to the lender's approval. Another type of addendum commonly used in Hawaii is the Financial Approval Addendum. This addendum provides specific details related to the buyer's financial approval process, including the timeframe for obtaining a loan commitment and the buyer's responsibilities in obtaining such approval. Other variations of the Hawaii Short Sale Addendum may exist depending on the specific requirements set by the lender, the property type, or other unique circumstances. These variations may include additional clauses or provisions specific to the particular short sale transaction. When drafting or reviewing a Hawaii Short Sale Addendum, it is crucial to pay close attention to the terms and conditions outlined within the document. Key elements that should be covered include the agreed-upon purchase price, any applicable contingencies or inspection periods, disclosures related to the property's condition, and the buyer's responsibilities regarding due diligence. Buyers should ensure that the addendum includes provisions protecting their interests, such as contingency clauses that allow them to withdraw from the transaction if the lender's approval is delayed or if the property does not meet their expectations after inspection. Sellers, on the other hand, must pay attention to deadlines specified within the addendum and ensure compliance with lender requirements to avoid potential delays or complications in the short sale process. In summary, the Hawaii Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial legal document used in short sale transactions within the state. It is important for both buyers and sellers to understand the specific terms and conditions outlined in the addendum, as it can greatly impact their rights and obligations throughout the transaction process.
