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.
Franklin Ohio Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document specific to the state of Ohio that is used when buying or selling a property through a short sale. This addendum is aimed at outlining the terms and conditions that are unique to a short sale transaction in Franklin, Ohio. The purpose of the Franklin Ohio Short Sale Addendum is to protect the parties involved, namely the buyer, seller, and lender, by clearly defining the responsibilities, timelines, and contingencies pertinent to the short sale process. It ensures that all parties are aware of the specifics related to the property's sale as a short sale and helps reduce potential conflicts or misunderstandings. Key elements often covered in the Franklin Ohio Short Sale Addendum include: 1. Short Sale Approval: This section specifies that the sale is contingent upon the lender's approval. It outlines the necessary actions and timeframes required for obtaining the lender's consent before proceeding further. 2. Timeline and Deadlines: The addendum clearly defines crucial timelines, such as the date by which the short sale approval must be obtained, the closing date, and any other relevant milestones. All parties must comply with these deadlines to ensure a smooth transaction. 3. Purchase Price: The agreed-upon purchase price, commonly lower than the outstanding mortgage balance, is stated in this section of the addendum. It may also specify how any shortage will be dealt with that cannot be covered by the sale proceeds. 4. Contingencies: The addendum may include contingencies specific to short sales, such as the buyer's satisfaction with a third-party negotiation company's services, property inspections, or obtaining additional financing. 5. Seller's Representations: This section provides the seller an opportunity to disclose any known issues, defects, or encumbrances affecting the property. It helps the buyer make an informed decision and mitigates future disputes. 6. Release of Liability: The addendum may include a provision for the lender specifically releasing the seller from any remaining mortgage indebtedness and waiving any deficiency judgment. Different types of Franklin Ohio Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist based on the specific circumstances and negotiation terms of the short sale. Some variations may cover unique contingencies or additional provisions, such as escrow arrangements, responsibilities for settlement costs, or property condition disclosures. In conclusion, the Franklin Ohio Short Sale Addendum is a crucial document in a short sale transaction, providing clarity and protection for all parties involved. It outlines the terms, conditions, and requirements specific to Franklin, Ohio, ensuring compliance with local laws and regulations while facilitating a successful short sale.Franklin Ohio Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document specific to the state of Ohio that is used when buying or selling a property through a short sale. This addendum is aimed at outlining the terms and conditions that are unique to a short sale transaction in Franklin, Ohio. The purpose of the Franklin Ohio Short Sale Addendum is to protect the parties involved, namely the buyer, seller, and lender, by clearly defining the responsibilities, timelines, and contingencies pertinent to the short sale process. It ensures that all parties are aware of the specifics related to the property's sale as a short sale and helps reduce potential conflicts or misunderstandings. Key elements often covered in the Franklin Ohio Short Sale Addendum include: 1. Short Sale Approval: This section specifies that the sale is contingent upon the lender's approval. It outlines the necessary actions and timeframes required for obtaining the lender's consent before proceeding further. 2. Timeline and Deadlines: The addendum clearly defines crucial timelines, such as the date by which the short sale approval must be obtained, the closing date, and any other relevant milestones. All parties must comply with these deadlines to ensure a smooth transaction. 3. Purchase Price: The agreed-upon purchase price, commonly lower than the outstanding mortgage balance, is stated in this section of the addendum. It may also specify how any shortage will be dealt with that cannot be covered by the sale proceeds. 4. Contingencies: The addendum may include contingencies specific to short sales, such as the buyer's satisfaction with a third-party negotiation company's services, property inspections, or obtaining additional financing. 5. Seller's Representations: This section provides the seller an opportunity to disclose any known issues, defects, or encumbrances affecting the property. It helps the buyer make an informed decision and mitigates future disputes. 6. Release of Liability: The addendum may include a provision for the lender specifically releasing the seller from any remaining mortgage indebtedness and waiving any deficiency judgment. Different types of Franklin Ohio Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist based on the specific circumstances and negotiation terms of the short sale. Some variations may cover unique contingencies or additional provisions, such as escrow arrangements, responsibilities for settlement costs, or property condition disclosures. In conclusion, the Franklin Ohio Short Sale Addendum is a crucial document in a short sale transaction, providing clarity and protection for all parties involved. It outlines the terms, conditions, and requirements specific to Franklin, Ohio, ensuring compliance with local laws and regulations while facilitating a successful short sale.
