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 Oklahoma Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document used when dealing with short sale transactions in the state of Oklahoma. This addendum contains specific clauses and provisions that are specifically tailored to protect the interests of both buyers and sellers in these unique real estate transactions. One type of Oklahoma Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is the Standard Short Sale Addendum. This addendum is commonly used in most short sale transactions and covers the basic terms and conditions typically associated with these types of sales. It includes provisions regarding the purchase price, financing, inspections, property condition, and other important considerations. Another type of Oklahoma Short Sale Addendum is the Contingency Addendum. This addendum is typically used when a buyer wants to make their purchase offer contingent upon the successful negotiation and approval of the short sale by the lender or lien holder. It provides provisions that allow the buyer to cancel the contract if the lender does not approve the short sale. The Oklahoma Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate includes important language regarding the timeline and process for obtaining lender approval. It typically outlines a specific timeframe for the seller to provide necessary financial documents to the lender and allows the buyer the right to extend the closing date if needed. The addendum also addresses potential issues that may arise during the short sale process. It often includes provisions regarding the seller's responsibility for any outstanding liens or encumbrances on the property, as well as protections for the buyer in case the property does not appraise for the agreed-upon purchase price. Furthermore, the Oklahoma Short Sale Addendum may include provisions related to the distribution of sale proceeds. This ensures that the funds from the sale are appropriately distributed to the necessary parties, such as the seller's mortgage lender, any subordinate lien holders, and closing costs. Overall, the Oklahoma Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is a vital document that helps streamline and protect the interests of both buyers and sellers in short sale transactions. It ensures that all parties involved are aware of the unique aspects and potential challenges associated with these types of deals, providing a framework for a successful and well-defined transaction process.The Oklahoma Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document used when dealing with short sale transactions in the state of Oklahoma. This addendum contains specific clauses and provisions that are specifically tailored to protect the interests of both buyers and sellers in these unique real estate transactions. One type of Oklahoma Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is the Standard Short Sale Addendum. This addendum is commonly used in most short sale transactions and covers the basic terms and conditions typically associated with these types of sales. It includes provisions regarding the purchase price, financing, inspections, property condition, and other important considerations. Another type of Oklahoma Short Sale Addendum is the Contingency Addendum. This addendum is typically used when a buyer wants to make their purchase offer contingent upon the successful negotiation and approval of the short sale by the lender or lien holder. It provides provisions that allow the buyer to cancel the contract if the lender does not approve the short sale. The Oklahoma Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate includes important language regarding the timeline and process for obtaining lender approval. It typically outlines a specific timeframe for the seller to provide necessary financial documents to the lender and allows the buyer the right to extend the closing date if needed. The addendum also addresses potential issues that may arise during the short sale process. It often includes provisions regarding the seller's responsibility for any outstanding liens or encumbrances on the property, as well as protections for the buyer in case the property does not appraise for the agreed-upon purchase price. Furthermore, the Oklahoma Short Sale Addendum may include provisions related to the distribution of sale proceeds. This ensures that the funds from the sale are appropriately distributed to the necessary parties, such as the seller's mortgage lender, any subordinate lien holders, and closing costs. Overall, the Oklahoma Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is a vital document that helps streamline and protect the interests of both buyers and sellers in short sale transactions. It ensures that all parties involved are aware of the unique aspects and potential challenges associated with these types of deals, providing a framework for a successful and well-defined transaction process.
