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.
Houston Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document designed to address the specific considerations and terms associated with purchasing a property through a short sale in Houston, Texas. A short sale occurs when the sale price of a property is lower than the outstanding mortgage balance, and the lender agrees to accept the sale proceeds as full satisfaction of the debt. The Houston Texas Short Sale Addendum to Contract contains essential provisions and conditions that protect both the buyer and the seller during the transaction. These provisions include: 1. Purchase Price: The addendum outlines the agreed-upon purchase price for the property, which is typically lower than the current market value due to the short sale circumstances. This section also clarifies that the purchase price is subject to the lender's approval and may be adjusted if necessary. 2. Lender Approval: This clause emphasizes that the transaction is contingent upon obtaining the lender's approval for the short sale. It specifies a deadline by which the lender's approval must be obtained and states that failure to obtain approval allows either party to terminate the contract. 3. Additional Contract Provisions: The addendum may include additional provisions specific to the short sale transaction, such as requiring the seller to provide documents and information necessary for the lender's approval or allowing the buyer to conduct inspections within a designated period. 4. Closing and Closing Costs: The addendum should address the closing date, considering the time required for lender approval. It may also allocate the responsibility for certain closing costs between the buyer and the seller, such as prorated property taxes, title insurance, or HOA fees. 5. Seller's Representations: This section requires the seller to disclose any known issues, defects, or liens on the property, ensuring that the buyer is aware of potential risks before completing the purchase. In terms of different types of Houston Texas Short Sale Addendum to Contract, there may be variations that arise in response to individual circumstances or preferences. These could include addendums specific to residential properties, commercial properties, or specific issues such as multiple lien holders or additional lender requirements. Ultimately, the Houston Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that protects the interests of both buyers and sellers involved in a short sale transaction in Houston, Texas.Houston Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document designed to address the specific considerations and terms associated with purchasing a property through a short sale in Houston, Texas. A short sale occurs when the sale price of a property is lower than the outstanding mortgage balance, and the lender agrees to accept the sale proceeds as full satisfaction of the debt. The Houston Texas Short Sale Addendum to Contract contains essential provisions and conditions that protect both the buyer and the seller during the transaction. These provisions include: 1. Purchase Price: The addendum outlines the agreed-upon purchase price for the property, which is typically lower than the current market value due to the short sale circumstances. This section also clarifies that the purchase price is subject to the lender's approval and may be adjusted if necessary. 2. Lender Approval: This clause emphasizes that the transaction is contingent upon obtaining the lender's approval for the short sale. It specifies a deadline by which the lender's approval must be obtained and states that failure to obtain approval allows either party to terminate the contract. 3. Additional Contract Provisions: The addendum may include additional provisions specific to the short sale transaction, such as requiring the seller to provide documents and information necessary for the lender's approval or allowing the buyer to conduct inspections within a designated period. 4. Closing and Closing Costs: The addendum should address the closing date, considering the time required for lender approval. It may also allocate the responsibility for certain closing costs between the buyer and the seller, such as prorated property taxes, title insurance, or HOA fees. 5. Seller's Representations: This section requires the seller to disclose any known issues, defects, or liens on the property, ensuring that the buyer is aware of potential risks before completing the purchase. In terms of different types of Houston Texas Short Sale Addendum to Contract, there may be variations that arise in response to individual circumstances or preferences. These could include addendums specific to residential properties, commercial properties, or specific issues such as multiple lien holders or additional lender requirements. Ultimately, the Houston Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that protects the interests of both buyers and sellers involved in a short sale transaction in Houston, Texas.
