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 Nevada Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used in real estate transactions specifically in Nevada. This addendum is designed to address the unique aspects and considerations that arise during a short sale transaction. A short sale occurs when a homeowner sells their property for less than the outstanding mortgage balance owed to the lender. This addendum helps streamline the process by explicitly outlining the terms and conditions agreed upon by all parties involved. Key features of the Nevada Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate include: 1. Purchase Price: This section specifies the agreed-upon purchase price for the property. It may reflect the property's market value, taking into account any outstanding liens or encumbrances. 2. Sale Approval: The addendum typically requires that the transaction be subject to the lender's approval. This is because in a short sale, the lender must agree to accept less than the owed amount on the mortgage. 3. Contingencies: The addendum outlines any additional contingencies specific to the short sale transaction. These may include the seller's ability to obtain the necessary third-party approvals or releases of personal liability. 4. Timeframes: The addendum establishes specific timeframes for various stages of the short sale process, such as submission of documentation, lender response, and closing. This helps ensure that the transaction moves forward in a timely manner. 5. Seller Contributions: This section addresses any agreements or limitations on seller contributions towards closing costs or other expenses related to the transaction. It is important to note that different types of Nevada Short Sale Addendums may exist, depending on the specific circumstances of the transaction. For instance, there may be variations for commercial properties, residential properties, or even different addendums tailored to different lenders' requirements. Real estate professionals should carefully review the applicable Nevada regulations and consult with legal experts to ensure compliance with the state's requirements and to utilize the correct version of the addendum most suitable for the particular short sale transaction. In conclusion, the Nevada Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document in short sale transactions. It helps clarify the terms and conditions agreed upon by the buyer, seller, and lender, ensuring a smoother and more transparent process.The Nevada Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used in real estate transactions specifically in Nevada. This addendum is designed to address the unique aspects and considerations that arise during a short sale transaction. A short sale occurs when a homeowner sells their property for less than the outstanding mortgage balance owed to the lender. This addendum helps streamline the process by explicitly outlining the terms and conditions agreed upon by all parties involved. Key features of the Nevada Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate include: 1. Purchase Price: This section specifies the agreed-upon purchase price for the property. It may reflect the property's market value, taking into account any outstanding liens or encumbrances. 2. Sale Approval: The addendum typically requires that the transaction be subject to the lender's approval. This is because in a short sale, the lender must agree to accept less than the owed amount on the mortgage. 3. Contingencies: The addendum outlines any additional contingencies specific to the short sale transaction. These may include the seller's ability to obtain the necessary third-party approvals or releases of personal liability. 4. Timeframes: The addendum establishes specific timeframes for various stages of the short sale process, such as submission of documentation, lender response, and closing. This helps ensure that the transaction moves forward in a timely manner. 5. Seller Contributions: This section addresses any agreements or limitations on seller contributions towards closing costs or other expenses related to the transaction. It is important to note that different types of Nevada Short Sale Addendums may exist, depending on the specific circumstances of the transaction. For instance, there may be variations for commercial properties, residential properties, or even different addendums tailored to different lenders' requirements. Real estate professionals should carefully review the applicable Nevada regulations and consult with legal experts to ensure compliance with the state's requirements and to utilize the correct version of the addendum most suitable for the particular short sale transaction. In conclusion, the Nevada Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document in short sale transactions. It helps clarify the terms and conditions agreed upon by the buyer, seller, and lender, ensuring a smoother and more transparent process.
