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.
Los Angeles California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document that outlines specific terms and conditions related to a short sale transaction in Los Angeles, California. This addendum is typically added to the standard purchase agreement and customized to suit the unique requirements of a short sale. In a short sale addendum, several relevant keywords may be included to ensure clear communication and a thorough understanding of the terms between the buyer, seller, and lender. These keywords may include: 1. Short sale: Refers to a real estate transaction where the borrower sells the property for less than the outstanding mortgage debt, with the lender's approval. 2. Addendum: An additional document that modifies or adds specific terms to the existing contract. 3. Contract: The legally binding agreement between the buyer and seller, outlining the terms and conditions of the real estate transaction. 4. Purchase price: The agreed-upon amount that the buyer will pay for the property. 5. Sale price: The final amount at which the property will be sold after negotiations and approval from the lender. 6. Real estate: Refers to the property being bought and sold, including land and any improvements on it. 7. Lender: The financial institution or entity that holds the mortgage on the property being sold. 8. Terms and conditions: The specific clauses and provisions that govern the agreement, such as the timeline, contingencies, and responsibilities of each party. Different types or variations of the Los Angeles California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist based on the parties involved and any additional agreements made. Some common variations may include: 1. Multiple lien addendum: In cases where there are multiple lien holders, this addendum clarifies their roles, responsibilities, and disbursement of proceeds from the short sale. 2. Investor addendum: If the buyer is an investor, this addendum may include additional terms related to the buyer's intentions, restrictions, and required disclosures. 3. Contingency addendum: If there are specific contingencies involved in the short sale transaction, such as the approval of a third party or obtaining clearances or permits, this addendum may outline the necessary conditions. It's important to consult with a real estate attorney or professional specializing in short sales in Los Angeles, California, to ensure all necessary and relevant terms and conditions are included in the addendum, based on the unique circumstances of the transaction.Los Angeles California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document that outlines specific terms and conditions related to a short sale transaction in Los Angeles, California. This addendum is typically added to the standard purchase agreement and customized to suit the unique requirements of a short sale. In a short sale addendum, several relevant keywords may be included to ensure clear communication and a thorough understanding of the terms between the buyer, seller, and lender. These keywords may include: 1. Short sale: Refers to a real estate transaction where the borrower sells the property for less than the outstanding mortgage debt, with the lender's approval. 2. Addendum: An additional document that modifies or adds specific terms to the existing contract. 3. Contract: The legally binding agreement between the buyer and seller, outlining the terms and conditions of the real estate transaction. 4. Purchase price: The agreed-upon amount that the buyer will pay for the property. 5. Sale price: The final amount at which the property will be sold after negotiations and approval from the lender. 6. Real estate: Refers to the property being bought and sold, including land and any improvements on it. 7. Lender: The financial institution or entity that holds the mortgage on the property being sold. 8. Terms and conditions: The specific clauses and provisions that govern the agreement, such as the timeline, contingencies, and responsibilities of each party. Different types or variations of the Los Angeles California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist based on the parties involved and any additional agreements made. Some common variations may include: 1. Multiple lien addendum: In cases where there are multiple lien holders, this addendum clarifies their roles, responsibilities, and disbursement of proceeds from the short sale. 2. Investor addendum: If the buyer is an investor, this addendum may include additional terms related to the buyer's intentions, restrictions, and required disclosures. 3. Contingency addendum: If there are specific contingencies involved in the short sale transaction, such as the approval of a third party or obtaining clearances or permits, this addendum may outline the necessary conditions. It's important to consult with a real estate attorney or professional specializing in short sales in Los Angeles, California, to ensure all necessary and relevant terms and conditions are included in the addendum, based on the unique circumstances of the transaction.
