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.
Montgomery Maryland Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is a legally binding document that outlines the specific terms and conditions of a short sale transaction in Montgomery, Maryland. This addendum provides important details related to the purchase and sale of real estate properties under the short sale process. The purpose of the Montgomery Maryland Short Sale Addendum is to protect the interests of both the buyer and seller when engaging in a short sale transaction. It ensures that all parties involved are aware of the unique aspects and potential risks associated with purchasing a property through a short sale. The addendum covers various essential components, including the agreed price of the property, the duration of the short sale process, and the specific conditions and contingencies that need to be met for the sale to proceed successfully. Additionally, it outlines any special provisions that may be required for the transaction, such as lender approvals and inspections. Some common types of Montgomery Maryland Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate include: 1. Standard Short Sale Addendum: This is the most common type of addendum used in Montgomery, Maryland. It contains clauses and provisions that are typically required in any short sale transaction, providing a framework to guide the process. 2. Special Provisions Addendum: This addendum is utilized when there are unique circumstances or specific requirements that need to be outlined in the contract. This may include additional inspections, repairs, or specific terms related to the buyer or seller's obligations. 3. Financing Contingency Addendum: If the buyer is obtaining financing to purchase the property through a short sale, this addendum outlines the specific financing contingencies and conditions that need to be fulfilled before the sale can be completed. The Montgomery Maryland Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is a crucial document in any short sale transaction. It provides a clear understanding of the responsibilities and obligations of all parties involved, ensuring a smooth and successful sale.
