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 Louisiana Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal agreement that outlines specific terms and conditions when a property is sold as a short sale. This addendum is essential for both buyers and sellers as it clarifies the unique aspects of a short sale transaction in the state of Louisiana. One type of Louisiana Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is the "As-Is" Addendum. This type of addendum states that the property is being sold in its current condition, with no guarantees or warranties from the seller. It further emphasizes that the buyer is responsible for conducting a thorough inspection of the property before completing the purchase. Another type of Louisiana Short Sale Addendum is the "Approval Contingency" Addendum. This addendum specifies that the entire transaction is subject to the seller's lender's approval. It includes provisions that outline the buyer's obligations during the time of lender review, such as providing additional documentation and being patient during the process. The Louisiana Short Sale Addendum also includes important terms related to the negotiation and handling of the short sale. It outlines the key aspects, such as the purchase price agreed upon, any applicable contingencies, and the timeline for completing the sale. Additionally, it addresses the potential for the property to be sold in "as-is" condition and any repairs or credits that might be negotiated. Furthermore, the addendum highlights specific disclosures and obligations, such as the requirement for the seller to provide a hardship letter explaining their financial situation and reasons for pursuing a short sale. It may also state the seller's responsibility to continue maintaining the property and utilities until the sale is finalized. In summary, the Louisiana Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial legal document that outlines the unique terms and conditions related to short sale transactions in the state. It ensures clarity and protection for both buyers and sellers during the process.The Louisiana Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal agreement that outlines specific terms and conditions when a property is sold as a short sale. This addendum is essential for both buyers and sellers as it clarifies the unique aspects of a short sale transaction in the state of Louisiana. One type of Louisiana Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is the "As-Is" Addendum. This type of addendum states that the property is being sold in its current condition, with no guarantees or warranties from the seller. It further emphasizes that the buyer is responsible for conducting a thorough inspection of the property before completing the purchase. Another type of Louisiana Short Sale Addendum is the "Approval Contingency" Addendum. This addendum specifies that the entire transaction is subject to the seller's lender's approval. It includes provisions that outline the buyer's obligations during the time of lender review, such as providing additional documentation and being patient during the process. The Louisiana Short Sale Addendum also includes important terms related to the negotiation and handling of the short sale. It outlines the key aspects, such as the purchase price agreed upon, any applicable contingencies, and the timeline for completing the sale. Additionally, it addresses the potential for the property to be sold in "as-is" condition and any repairs or credits that might be negotiated. Furthermore, the addendum highlights specific disclosures and obligations, such as the requirement for the seller to provide a hardship letter explaining their financial situation and reasons for pursuing a short sale. It may also state the seller's responsibility to continue maintaining the property and utilities until the sale is finalized. In summary, the Louisiana Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial legal document that outlines the unique terms and conditions related to short sale transactions in the state. It ensures clarity and protection for both buyers and sellers during the process.
