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.
Maine Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used in real estate transactions in the state of Maine. This addendum is specifically drafted for short sale transactions, where the seller is in a financially distressed situation and the sale price of the property is less than the outstanding mortgage balance. The Maine Short Sale Addendum acts as an addendum to the standard purchase and sale agreement, outlining the specific terms and conditions related to the short sale process. It is essential for both parties involved, the buyer and the seller, to understand and agree to these terms before proceeding with the transaction. Key elements typically covered in the Maine Short Sale Addendum include: 1. Property Details: The addendum specifies the address and legal description of the property being sold. 2. Seller Representations: The seller must provide written representations regarding their financial hardship, the property's current condition, and any known defects or liens on the property. 3. Short Sale Approval: It is essential for the parties to understand that the sale is subject to the seller obtaining approval from their lender(s) for the short sale. The addendum may outline the timeframe within which the seller must obtain this approval. 4. Purchase Price: The addendum details the agreed-upon purchase price, which is typically lower than the outstanding mortgage balance, reflecting the property's market value. 5. Allocation of Closing Costs: The addendum addresses the allocation of various closing costs, such as title insurance, recording fees, loan payoff fees, and other customary expenses. These costs may be negotiated between the parties or in accordance with lender guidelines. 6. Buyer's Rights and Obligations: The addendum may outline specific conditions for the buyer, including the requirement to complete the purchase within a specified timeframe and provide additional documentation or forms if requested by the seller's lender. 7. Seller's Obligations: The addendum delineates the seller's obligations, such as cooperating with the short sale process, providing necessary financial documentation to the lender, and complying with lender approvals. Different types of Maine Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist based on specific circumstances or requirements set by participating lenders. It is important to consult with a real estate attorney or an experienced real estate agent to ensure that the addendum aligns with current regulations and meets the needs of both parties involved in the transaction.Maine Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used in real estate transactions in the state of Maine. This addendum is specifically drafted for short sale transactions, where the seller is in a financially distressed situation and the sale price of the property is less than the outstanding mortgage balance. The Maine Short Sale Addendum acts as an addendum to the standard purchase and sale agreement, outlining the specific terms and conditions related to the short sale process. It is essential for both parties involved, the buyer and the seller, to understand and agree to these terms before proceeding with the transaction. Key elements typically covered in the Maine Short Sale Addendum include: 1. Property Details: The addendum specifies the address and legal description of the property being sold. 2. Seller Representations: The seller must provide written representations regarding their financial hardship, the property's current condition, and any known defects or liens on the property. 3. Short Sale Approval: It is essential for the parties to understand that the sale is subject to the seller obtaining approval from their lender(s) for the short sale. The addendum may outline the timeframe within which the seller must obtain this approval. 4. Purchase Price: The addendum details the agreed-upon purchase price, which is typically lower than the outstanding mortgage balance, reflecting the property's market value. 5. Allocation of Closing Costs: The addendum addresses the allocation of various closing costs, such as title insurance, recording fees, loan payoff fees, and other customary expenses. These costs may be negotiated between the parties or in accordance with lender guidelines. 6. Buyer's Rights and Obligations: The addendum may outline specific conditions for the buyer, including the requirement to complete the purchase within a specified timeframe and provide additional documentation or forms if requested by the seller's lender. 7. Seller's Obligations: The addendum delineates the seller's obligations, such as cooperating with the short sale process, providing necessary financial documentation to the lender, and complying with lender approvals. Different types of Maine Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist based on specific circumstances or requirements set by participating lenders. It is important to consult with a real estate attorney or an experienced real estate agent to ensure that the addendum aligns with current regulations and meets the needs of both parties involved in the transaction.
