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 Maricopa Arizona Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that outlines important details related to a short sale transaction in Maricopa, Arizona. Short sales occur when a homeowner is in financial distress and sells their property for less than what is owed on the mortgage. This addendum is designed to protect the interests of both the buyer and the seller during this unique real estate transaction. The main objective of the Maricopa Arizona Short Sale Addendum is to clearly establish the terms and conditions of the purchase agreement between the buyer and the seller. It covers specific aspects related to the short sale process, such as the purchase price, buyer's due diligence period, seller disclosures, and possible contingencies. This addendum provides legal protection to both parties involved, ensuring a smooth and fair transaction. There might be different types of Maricopa Arizona Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate. These variations would generally depend on factors such as the complexity of the short sale, lender requirements, and any unique circumstances involved in the transaction. Some common types include: 1. Basic Short Sale Addendum: This type outlines the fundamental terms and conditions required for a standard short sale transaction in Maricopa. It covers the purchase price, escrow timeframe, buyer's rights to inspections, and seller disclosures. 2. Contingency Addendum: This addendum focuses on specific contingencies that need to be addressed during the short sale. It may include clauses related to the seller obtaining lender approval, buyer's ability to secure financing, or necessary repairs requested by the buyer. 3. Lender-Specific Addendum: In some cases, the lender involved in the short sale process might require additional documentation or specific clauses to be included in the addendum. This type of addendum ensures compliance with the lender's guidelines or policies. Regardless of the specific type, the Maricopa Arizona Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is an essential document that protects the interests of both buyers and sellers in a short sale transaction. It is recommended to consult with a qualified real estate agent or attorney to ensure that all necessary details are incorporated into the addendum, enabling a transparent and successful real estate transaction.The Maricopa Arizona Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that outlines important details related to a short sale transaction in Maricopa, Arizona. Short sales occur when a homeowner is in financial distress and sells their property for less than what is owed on the mortgage. This addendum is designed to protect the interests of both the buyer and the seller during this unique real estate transaction. The main objective of the Maricopa Arizona Short Sale Addendum is to clearly establish the terms and conditions of the purchase agreement between the buyer and the seller. It covers specific aspects related to the short sale process, such as the purchase price, buyer's due diligence period, seller disclosures, and possible contingencies. This addendum provides legal protection to both parties involved, ensuring a smooth and fair transaction. There might be different types of Maricopa Arizona Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate. These variations would generally depend on factors such as the complexity of the short sale, lender requirements, and any unique circumstances involved in the transaction. Some common types include: 1. Basic Short Sale Addendum: This type outlines the fundamental terms and conditions required for a standard short sale transaction in Maricopa. It covers the purchase price, escrow timeframe, buyer's rights to inspections, and seller disclosures. 2. Contingency Addendum: This addendum focuses on specific contingencies that need to be addressed during the short sale. It may include clauses related to the seller obtaining lender approval, buyer's ability to secure financing, or necessary repairs requested by the buyer. 3. Lender-Specific Addendum: In some cases, the lender involved in the short sale process might require additional documentation or specific clauses to be included in the addendum. This type of addendum ensures compliance with the lender's guidelines or policies. Regardless of the specific type, the Maricopa Arizona Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is an essential document that protects the interests of both buyers and sellers in a short sale transaction. It is recommended to consult with a qualified real estate agent or attorney to ensure that all necessary details are incorporated into the addendum, enabling a transparent and successful real estate transaction.
