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 York Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document specific to New York that is used when buying or selling a property through a short sale. It is an additional agreement that modifies certain terms and conditions of the original contract to accommodate the unique circumstances of a short sale transaction. A short sale occurs when a homeowner is unable to repay their mortgage, and the lender agrees to accept a lower payoff amount than the total owed on the loan. The Short Sale Addendum is designed to protect both the buyer and the seller by outlining specific requirements and terms that are necessary for the successful completion of a short sale transaction in New York. Key provisions typically included in the New York Short Sale Addendum may include: 1. Seller Representation: The addendum may require the seller to confirm that they have sought advice from an attorney or professional, and that they have provided the lender with all relevant information and documents necessary for the short sale approval process. 2. Acceptance of Short Sale Approval: It is common for the addendum to state that the purchase of the property is contingent upon the seller obtaining written approval from the lender to proceed with the short sale. 3. Closing Date Extension: Acknowledgement that the closing date may need to be extended due to the lender's approval process or other unforeseen circumstances related to the short sale. 4. Buyer's Rights: The addendum may outline specific rights for the buyer, such as the ability to conduct inspections, obtain the necessary financing, and review all relevant short sale documents before proceeding with the purchase. 5. Closing Costs and Expenses: The addendum may address how the costs and expenses related to the short sale, such as title fees, attorney fees, and any unpaid utility bills, will be allocated between the buyer and the seller. It is important to note that there may be different variations or types of the New York Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, depending on the specific requirements of lenders, local regulations, or agreements between the parties involved. The content of the addendum may differ based on the unique circumstances of each short sale transaction. Buyers and sellers engaging in a short sale transaction in New York should consult with an experienced real estate attorney or professional to ensure that the necessary addendum is prepared and executed correctly. This will help protect their interests and ensure compliance with applicable laws and regulations.The New York Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document specific to New York that is used when buying or selling a property through a short sale. It is an additional agreement that modifies certain terms and conditions of the original contract to accommodate the unique circumstances of a short sale transaction. A short sale occurs when a homeowner is unable to repay their mortgage, and the lender agrees to accept a lower payoff amount than the total owed on the loan. The Short Sale Addendum is designed to protect both the buyer and the seller by outlining specific requirements and terms that are necessary for the successful completion of a short sale transaction in New York. Key provisions typically included in the New York Short Sale Addendum may include: 1. Seller Representation: The addendum may require the seller to confirm that they have sought advice from an attorney or professional, and that they have provided the lender with all relevant information and documents necessary for the short sale approval process. 2. Acceptance of Short Sale Approval: It is common for the addendum to state that the purchase of the property is contingent upon the seller obtaining written approval from the lender to proceed with the short sale. 3. Closing Date Extension: Acknowledgement that the closing date may need to be extended due to the lender's approval process or other unforeseen circumstances related to the short sale. 4. Buyer's Rights: The addendum may outline specific rights for the buyer, such as the ability to conduct inspections, obtain the necessary financing, and review all relevant short sale documents before proceeding with the purchase. 5. Closing Costs and Expenses: The addendum may address how the costs and expenses related to the short sale, such as title fees, attorney fees, and any unpaid utility bills, will be allocated between the buyer and the seller. It is important to note that there may be different variations or types of the New York Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, depending on the specific requirements of lenders, local regulations, or agreements between the parties involved. The content of the addendum may differ based on the unique circumstances of each short sale transaction. Buyers and sellers engaging in a short sale transaction in New York should consult with an experienced real estate attorney or professional to ensure that the necessary addendum is prepared and executed correctly. This will help protect their interests and ensure compliance with applicable laws and regulations.
