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 Wisconsin Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used when buying or selling a property in Wisconsin under short sale conditions. This addendum serves as an extension or modification to the original purchase and sale agreement and includes specific clauses and provisions related to the short sale transaction. The purpose of this addendum is to address the unique circumstances and requirements of a short sale, which typically occurs when a homeowner is facing financial distress and is unable to sell the property for an amount that covers the outstanding mortgage balance. In a short sale, the lender agrees to accept a lower payoff amount than what is owed, allowing the property to be sold to a qualified buyer. Key provisions included in the Wisconsin Short Sale Addendum may cover important aspects such as: 1. Short Sale Approval: This clause outlines that the transaction is subject to the lender's approval and specifies the timeframe within which the approval should be obtained. It also typically requires the seller to diligently cooperate with the lender's requests and provides the buyer with the option to terminate the contract if approval is not received within the specified timeframe. 2. Deficiency Judgment Waiver: This provision states that the seller's lenders agree to waive their rights to pursue a deficiency judgment against the seller, meaning they cannot seek further payment from the seller for the remaining balance after the short sale is completed. 3. Seller's Representation: This clause requires the seller to provide accurate and complete information regarding their financial situation, as well as any liens or encumbrances on the property. It also addresses the seller's responsibility to continue maintaining the property until the closing. 4. Buyer and Seller Responsibilities: This section delineates the obligations of both the buyer and the seller throughout the short sale process. It may include requirements such as the buyer's commitment to proceed with the purchase if the lender approves the short sale and the seller agreeing to cooperate with necessary inspections and appraisals. Although there are no distinct types of Wisconsin Short Sale Addendum, the content may slightly vary depending on the specific details and conditions of the short sale transaction. It is essential for both buyers and sellers to consult with a qualified real estate attorney or agent who is well-versed in short sales to ensure that the addendum accurately reflects their respective interests and complies with Wisconsin laws and regulations.The Wisconsin Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used when buying or selling a property in Wisconsin under short sale conditions. This addendum serves as an extension or modification to the original purchase and sale agreement and includes specific clauses and provisions related to the short sale transaction. The purpose of this addendum is to address the unique circumstances and requirements of a short sale, which typically occurs when a homeowner is facing financial distress and is unable to sell the property for an amount that covers the outstanding mortgage balance. In a short sale, the lender agrees to accept a lower payoff amount than what is owed, allowing the property to be sold to a qualified buyer. Key provisions included in the Wisconsin Short Sale Addendum may cover important aspects such as: 1. Short Sale Approval: This clause outlines that the transaction is subject to the lender's approval and specifies the timeframe within which the approval should be obtained. It also typically requires the seller to diligently cooperate with the lender's requests and provides the buyer with the option to terminate the contract if approval is not received within the specified timeframe. 2. Deficiency Judgment Waiver: This provision states that the seller's lenders agree to waive their rights to pursue a deficiency judgment against the seller, meaning they cannot seek further payment from the seller for the remaining balance after the short sale is completed. 3. Seller's Representation: This clause requires the seller to provide accurate and complete information regarding their financial situation, as well as any liens or encumbrances on the property. It also addresses the seller's responsibility to continue maintaining the property until the closing. 4. Buyer and Seller Responsibilities: This section delineates the obligations of both the buyer and the seller throughout the short sale process. It may include requirements such as the buyer's commitment to proceed with the purchase if the lender approves the short sale and the seller agreeing to cooperate with necessary inspections and appraisals. Although there are no distinct types of Wisconsin Short Sale Addendum, the content may slightly vary depending on the specific details and conditions of the short sale transaction. It is essential for both buyers and sellers to consult with a qualified real estate attorney or agent who is well-versed in short sales to ensure that the addendum accurately reflects their respective interests and complies with Wisconsin laws and regulations.
