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 Oakland Michigan Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document used in real estate transactions that involve short sales in Oakland, Michigan. A short sale occurs when a homeowner sells their property for less than the amount owed on their mortgage. This addendum is designed to outline specific terms and conditions related to the short sale process. There are different types of Oakland Michigan Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, based on varying circumstances and requirements. Here are a few examples: 1. Standard Short Sale Addendum: This addendum is typically used for conventional short sale transactions in Oakland, Michigan. It includes pertinent clauses and provisions that outline the terms, responsibilities, and obligations of both the buyer and the seller. 2. FHA Short Sale Addendum: If the property in question has an FHA (Federal Housing Administration) insured mortgage, an FHA Short Sale Addendum may be required. This addendum includes additional provisions specific to FHA rules and regulations. 3. VA Short Sale Addendum: Similar to the FHA addendum, a VA (Department of Veterans Affairs) Short Sale Addendum is necessary when the property has a VA-backed mortgage. It adheres to specific requirements and procedures outlined by the VA. 4. Investor Short Sale Addendum: This addendum is used when the property is being sold by an investor or a homeowner who acquired the property through foreclosure or other investment strategies. It may contain provisions tailored to investor-related considerations. The Oakland Michigan Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate includes key elements to protect both the buyer and the seller. These elements may include: 1. Purchase Price: The addendum specifies the agreed-upon purchase price for the property. It often considers the outstanding mortgage balance and any other liens on the property. 2. Short Sale Approval: The addendum outlines that the sale is subject to the lender's approval as the seller seeks to sell the property for less than the mortgage balance. It clarifies that the buyer's offer is contingent upon the lender's acceptance of the short sale terms. 3. Seller's Financial Hardship: The addendum may require the seller to provide documentation and proof of their financial hardship which led to the need for a short sale. 4. Property Condition and Disclosures: The addendum may require the seller to disclose any known issues or defects with the property. It may also state that the property is being sold in "as-is" condition, meaning the buyer accepts the property without any guarantees or warranties. 5. Closing Timeline: The addendum should include a timeline for the completion of the short sale process, including contingencies, inspections, and any other relevant deadlines. It's crucial to consult a qualified real estate professional or attorney experienced in Oakland, Michigan short sale transactions for accurate guidance and the appropriate addendum version based on the specific circumstances.The Oakland Michigan Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document used in real estate transactions that involve short sales in Oakland, Michigan. A short sale occurs when a homeowner sells their property for less than the amount owed on their mortgage. This addendum is designed to outline specific terms and conditions related to the short sale process. There are different types of Oakland Michigan Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, based on varying circumstances and requirements. Here are a few examples: 1. Standard Short Sale Addendum: This addendum is typically used for conventional short sale transactions in Oakland, Michigan. It includes pertinent clauses and provisions that outline the terms, responsibilities, and obligations of both the buyer and the seller. 2. FHA Short Sale Addendum: If the property in question has an FHA (Federal Housing Administration) insured mortgage, an FHA Short Sale Addendum may be required. This addendum includes additional provisions specific to FHA rules and regulations. 3. VA Short Sale Addendum: Similar to the FHA addendum, a VA (Department of Veterans Affairs) Short Sale Addendum is necessary when the property has a VA-backed mortgage. It adheres to specific requirements and procedures outlined by the VA. 4. Investor Short Sale Addendum: This addendum is used when the property is being sold by an investor or a homeowner who acquired the property through foreclosure or other investment strategies. It may contain provisions tailored to investor-related considerations. The Oakland Michigan Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate includes key elements to protect both the buyer and the seller. These elements may include: 1. Purchase Price: The addendum specifies the agreed-upon purchase price for the property. It often considers the outstanding mortgage balance and any other liens on the property. 2. Short Sale Approval: The addendum outlines that the sale is subject to the lender's approval as the seller seeks to sell the property for less than the mortgage balance. It clarifies that the buyer's offer is contingent upon the lender's acceptance of the short sale terms. 3. Seller's Financial Hardship: The addendum may require the seller to provide documentation and proof of their financial hardship which led to the need for a short sale. 4. Property Condition and Disclosures: The addendum may require the seller to disclose any known issues or defects with the property. It may also state that the property is being sold in "as-is" condition, meaning the buyer accepts the property without any guarantees or warranties. 5. Closing Timeline: The addendum should include a timeline for the completion of the short sale process, including contingencies, inspections, and any other relevant deadlines. It's crucial to consult a qualified real estate professional or attorney experienced in Oakland, Michigan short sale transactions for accurate guidance and the appropriate addendum version based on the specific circumstances.
