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 New Mexico Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that outlines the terms and conditions specific to short sale transactions in New Mexico. Short sales occur when the proceeds from the sale of a property are less than the outstanding mortgage balance, and the lender agrees to accept a reduced payoff. This addendum ensures that both the buyer and the seller are aware of the unique requirements and circumstances of a short sale transaction in New Mexico. It provides additional provisions to the standard contract to address the specific issues that may arise during this type of real estate transaction. There are various types of New Mexico Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, and they may differ depending on the parties involved or specific lender requirements. These addenda may include: 1. Buyer's Short Sale Addendum: This type of addendum outlines the buyer's responsibilities and obligations when engaging in a short sale transaction. It may include provisions related to the buyer's due diligence, approval period, and any required reports or disclosures. 2. Seller's Short Sale Addendum: Likewise, the seller's addendum enumerates their responsibilities during the short sale process. It may include disclosures of any known property defects, the seller's cooperation with the lender, and their obligations related to document provision. 3. Lender-Specific Short Sale Addendum: Some lenders may have their addenda tailored to their specific requirements. These addenda may include lender-specific provisions, disclosures, or timelines that both the buyer and seller must comply with. 4. Short Sale Addendum for Cash Buyers: This addendum might be utilized when the buyer intends to purchase the property with cash. It may outline any particular terms or conditions applicable to cash offers, such as expedited timelines or additional requirements. The New Mexico Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that protects the interests of both buyers and sellers during the challenging process of a short sale transaction. It is recommended for all parties involved to consult with a qualified real estate attorney or agent familiar with New Mexico laws and regulations to ensure compliance with all legal requirements and to protect their rights throughout the transaction.The New Mexico Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that outlines the terms and conditions specific to short sale transactions in New Mexico. Short sales occur when the proceeds from the sale of a property are less than the outstanding mortgage balance, and the lender agrees to accept a reduced payoff. This addendum ensures that both the buyer and the seller are aware of the unique requirements and circumstances of a short sale transaction in New Mexico. It provides additional provisions to the standard contract to address the specific issues that may arise during this type of real estate transaction. There are various types of New Mexico Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, and they may differ depending on the parties involved or specific lender requirements. These addenda may include: 1. Buyer's Short Sale Addendum: This type of addendum outlines the buyer's responsibilities and obligations when engaging in a short sale transaction. It may include provisions related to the buyer's due diligence, approval period, and any required reports or disclosures. 2. Seller's Short Sale Addendum: Likewise, the seller's addendum enumerates their responsibilities during the short sale process. It may include disclosures of any known property defects, the seller's cooperation with the lender, and their obligations related to document provision. 3. Lender-Specific Short Sale Addendum: Some lenders may have their addenda tailored to their specific requirements. These addenda may include lender-specific provisions, disclosures, or timelines that both the buyer and seller must comply with. 4. Short Sale Addendum for Cash Buyers: This addendum might be utilized when the buyer intends to purchase the property with cash. It may outline any particular terms or conditions applicable to cash offers, such as expedited timelines or additional requirements. The New Mexico Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that protects the interests of both buyers and sellers during the challenging process of a short sale transaction. It is recommended for all parties involved to consult with a qualified real estate attorney or agent familiar with New Mexico laws and regulations to ensure compliance with all legal requirements and to protect their rights throughout the transaction.
