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.
Collin Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legally binding document used in real estate transactions within Collin County, Texas. This addendum is specifically designed for short sale transactions, which typically occur when a homeowner is facing financial distress and is unable to sell their property for the full amount owed on their mortgage. In such cases, the lender agrees to accept a lower sales price to mitigate their losses. The Collin Texas Short Sale Addendum to Contract outlines various terms and conditions specific to short sale transactions in Collin County. It helps protect both the buyer and the seller's interests by establishing a clear understanding of the sale's unique dynamics. Some of the key elements that might be covered in this addendum include: 1. Property Information: The addendum identifies the property being sold, including the legal description and address. 2. Purchase Price: This section states the agreed-upon purchase price, reflecting the reduced amount accepted by the lender. It may also include any additional costs or expenses, such as closing costs or seller concessions. 3. Short Sale Approval: The addendum stipulates that the transaction is contingent upon the lender's approval of the short sale. The buyer and seller understand that the lender has the final say on whether the sale can proceed. 4. Seller's Representations: The seller is required to disclose all known defects, damages, or issues related to the property, as well as any pending legal actions, liens, or encumbrances that may affect the sale. 5. Buyer's Right to Inspections: The addendum may grant the buyer the right to conduct inspections within a specific timeframe. This allows them to assess the property's condition and determine if any repairs or modifications are necessary. 6. Closing and Escrow: The addendum details the anticipated closing date, which may be subject to change based on the lender's approval timeline. It also outlines the responsibility for escrow, title, and recording fees, providing clarity on these financial aspects. It's important to note that while the general framework of the Collin Texas Short Sale Addendum to Contract remains consistent, variations may exist based on individual circumstances or parties involved. Different types of addenda may also exist depending on the specific requirements established by lenders or local governing bodies. Understanding the intricacies of the Collin Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is vital for all parties involved in a short sale transaction. Seeking legal advice or consulting with a real estate professional experienced in these matters can help ensure a smooth and successful transaction.Collin Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legally binding document used in real estate transactions within Collin County, Texas. This addendum is specifically designed for short sale transactions, which typically occur when a homeowner is facing financial distress and is unable to sell their property for the full amount owed on their mortgage. In such cases, the lender agrees to accept a lower sales price to mitigate their losses. The Collin Texas Short Sale Addendum to Contract outlines various terms and conditions specific to short sale transactions in Collin County. It helps protect both the buyer and the seller's interests by establishing a clear understanding of the sale's unique dynamics. Some of the key elements that might be covered in this addendum include: 1. Property Information: The addendum identifies the property being sold, including the legal description and address. 2. Purchase Price: This section states the agreed-upon purchase price, reflecting the reduced amount accepted by the lender. It may also include any additional costs or expenses, such as closing costs or seller concessions. 3. Short Sale Approval: The addendum stipulates that the transaction is contingent upon the lender's approval of the short sale. The buyer and seller understand that the lender has the final say on whether the sale can proceed. 4. Seller's Representations: The seller is required to disclose all known defects, damages, or issues related to the property, as well as any pending legal actions, liens, or encumbrances that may affect the sale. 5. Buyer's Right to Inspections: The addendum may grant the buyer the right to conduct inspections within a specific timeframe. This allows them to assess the property's condition and determine if any repairs or modifications are necessary. 6. Closing and Escrow: The addendum details the anticipated closing date, which may be subject to change based on the lender's approval timeline. It also outlines the responsibility for escrow, title, and recording fees, providing clarity on these financial aspects. It's important to note that while the general framework of the Collin Texas Short Sale Addendum to Contract remains consistent, variations may exist based on individual circumstances or parties involved. Different types of addenda may also exist depending on the specific requirements established by lenders or local governing bodies. Understanding the intricacies of the Collin Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is vital for all parties involved in a short sale transaction. Seeking legal advice or consulting with a real estate professional experienced in these matters can help ensure a smooth and successful transaction.
