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 Virgin Islands Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a vital legal document that contains specific provisions applicable to short sale transactions in the Virgin Islands. This addendum is crucial in outlining the terms and conditions unique to short sale deals, safeguarding the interests of both buyers and sellers involved. The Virgin Islands Short Sale Addendum provides a comprehensive framework for the negotiations and execution of a short sale transaction in the territory. This contract addendum must be carefully reviewed and understood by all parties involved, including the buyer, seller, and real estate agents or attorneys representing each side. It ensures compliance with local laws and regulations while addressing the specific challenges and requirements of a short sale. The key features typically covered in the Virgin Islands Short Sale Addendum may include, but are not limited to, the following: 1. Purchase Price: This section outlines the agreed-upon purchase price for the property, which is typically subject to lender approval. It addresses potential adjustments based on lender requirements and appraised value. 2. Seller Motivation: The addendum may require the seller to provide necessary documents and information promptly, assisting with the efficient processing of the short sale transaction. 3. Lender Approval: The document acknowledges that the sale is contingent upon the lender's approval, as short sale transactions involve the consent of the lender holding the mortgage. The addendum may outline the timeframe within which the seller must obtain the lender's acceptance. 4. Disclosure of Multiple Offers: In situations where the seller may receive multiple offers, this section may require the seller to disclose the existence of such offers, enabling the buyer to make an informed decision. 5. Short Sale Specialist: The addendum may specify whether the seller is working with a short sale specialist or attorney to assist in the negotiation and processing of the short sale. 6. Closing and Escrow: The document outlines the timeframe and procedures for the closing of the transaction, including the allocation of costs and fees associated with the sale. It may also address potential delays and extensions due to lender approval. While there may not be different types of Virgin Islands Short Sale Addendum, its content can be customized to address the specific circumstances and requirements of each short sale transaction. This allows for flexibility and adaptation to various scenarios, safeguarding the interests of both buyers and sellers in the Virgin Islands real estate market.
