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 Kings New York Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial legal document that outlines the specific terms and conditions related to the purchase and sale of real estate in Kings County, New York, especially in the context of a short sale. This addendum is used when a homeowner is selling their property for less than the outstanding mortgage balance, requiring approval from the lender. This addendum serves as an attachment to the main contract and provides additional provisions to protect both the buyer and seller during the complex short sale process. It covers various aspects such as the purchase price, timeline, contingencies, and responsibilities of both parties involved. One type of Kings New York Short Sale Addendum is the "Standard Short Sale Addendum," which includes the essential terms and conditions required for a standard short sale transaction. It covers important clauses like the purchase price agreed upon, specific deadlines for lender approval, closing date, and obligations of the buyer and seller. Another type of Kings New York Short Sale Addendum is the "Contingency Addendum," which allows the buyer to include specific contingencies related to the short sale process. These contingencies can address issues like satisfactory property inspection, approval of financing, title clearance, and various other conditions necessary to protect the buyer's interests. Additionally, there may be variations of the addendum based on specific circumstances or parties involved, such as a "Bank-Approved Short Sale Addendum," which is utilized when the lender has already approved the short sale terms and the buyer and seller need to finalize the transaction accordingly. Overall, the Kings New York Short Sale Addendum is a vital legal instrument that ensures the smooth execution of a short sale transaction in Kings County, New York. It provides clarity and protection for both parties involved, helping to navigate the complexities of the real estate market while adhering to the regulations and requirements associated with short sales.The Kings New York Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial legal document that outlines the specific terms and conditions related to the purchase and sale of real estate in Kings County, New York, especially in the context of a short sale. This addendum is used when a homeowner is selling their property for less than the outstanding mortgage balance, requiring approval from the lender. This addendum serves as an attachment to the main contract and provides additional provisions to protect both the buyer and seller during the complex short sale process. It covers various aspects such as the purchase price, timeline, contingencies, and responsibilities of both parties involved. One type of Kings New York Short Sale Addendum is the "Standard Short Sale Addendum," which includes the essential terms and conditions required for a standard short sale transaction. It covers important clauses like the purchase price agreed upon, specific deadlines for lender approval, closing date, and obligations of the buyer and seller. Another type of Kings New York Short Sale Addendum is the "Contingency Addendum," which allows the buyer to include specific contingencies related to the short sale process. These contingencies can address issues like satisfactory property inspection, approval of financing, title clearance, and various other conditions necessary to protect the buyer's interests. Additionally, there may be variations of the addendum based on specific circumstances or parties involved, such as a "Bank-Approved Short Sale Addendum," which is utilized when the lender has already approved the short sale terms and the buyer and seller need to finalize the transaction accordingly. Overall, the Kings New York Short Sale Addendum is a vital legal instrument that ensures the smooth execution of a short sale transaction in Kings County, New York. It provides clarity and protection for both parties involved, helping to navigate the complexities of the real estate market while adhering to the regulations and requirements associated with short sales.
