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 King Washington Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that outlines the terms and conditions specific to a short sale transaction involving real estate properties in King Washington. This addendum is designed to protect both the buyer and the seller by clearly defining the responsibilities and obligations of each party. There are several types of King Washington Short Sale Addendums, each designed to address specific aspects of the short sale process. Some key variations include: 1. King Washington Short Sale Addendum for Price Negotiation: This addendum focuses on determining the agreed-upon purchase price of the property. It includes provisions for the buyer to conduct an appraisal or inspection to ensure the property's value aligns with the offered price. 2. King Washington Short Sale Addendum for Financing Terms: This addendum primarily outlines the buyer's financing arrangements. It specifies the type of loan, interest rate, and other relevant financial terms agreed upon between the buyer, seller, and any involved lenders. 3. King Washington Short Sale Addendum for Closing and Timeline: This addendum specifically addresses the timeline and closing process of the short sale transaction. It may include provisions for extensions, contingency deadlines, and other necessary details to ensure a smooth and timely completion. 4. King Washington Short Sale Seller Contribution Addendum: This addendum focuses on defining the seller's contribution towards the short sale process. It addresses any potential costs or fees that the seller may agree to cover, such as outstanding liens or repairs required for the property. Being well-versed in these addendum types is essential for all parties involved in a short sale transaction in King Washington. Buyers and sellers should carefully review and understand the specific addendum relevant to their situation, seeking professional assistance if necessary, to ensure compliance with local regulations and a successful outcome to the transaction.The King Washington Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that outlines the terms and conditions specific to a short sale transaction involving real estate properties in King Washington. This addendum is designed to protect both the buyer and the seller by clearly defining the responsibilities and obligations of each party. There are several types of King Washington Short Sale Addendums, each designed to address specific aspects of the short sale process. Some key variations include: 1. King Washington Short Sale Addendum for Price Negotiation: This addendum focuses on determining the agreed-upon purchase price of the property. It includes provisions for the buyer to conduct an appraisal or inspection to ensure the property's value aligns with the offered price. 2. King Washington Short Sale Addendum for Financing Terms: This addendum primarily outlines the buyer's financing arrangements. It specifies the type of loan, interest rate, and other relevant financial terms agreed upon between the buyer, seller, and any involved lenders. 3. King Washington Short Sale Addendum for Closing and Timeline: This addendum specifically addresses the timeline and closing process of the short sale transaction. It may include provisions for extensions, contingency deadlines, and other necessary details to ensure a smooth and timely completion. 4. King Washington Short Sale Seller Contribution Addendum: This addendum focuses on defining the seller's contribution towards the short sale process. It addresses any potential costs or fees that the seller may agree to cover, such as outstanding liens or repairs required for the property. Being well-versed in these addendum types is essential for all parties involved in a short sale transaction in King Washington. Buyers and sellers should carefully review and understand the specific addendum relevant to their situation, seeking professional assistance if necessary, to ensure compliance with local regulations and a successful outcome to the transaction.
