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.
Orange California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document that is used in real estate transactions in Orange, California, specifically for properties involved in a short sale. This addendum provides additional clauses and provisions to the standard contract, addressing the unique circumstances and requirements of a short sale transaction. The Orange California Short Sale Addendum includes key elements specific to short sales, such as: 1. Purchase Price: This section outlines the agreed-upon purchase price for the property, considering it is being sold as a short sale. It often includes terms related to the lender's approval and the buyer's acknowledgment of the property's distressed condition. 2. Approval of Lender: Since the seller is unable to cover the entire loan amount with the sale proceeds, the lender's approval is crucial. This addendum specifies that the sale is contingent upon the lender's approval and allows provisions for extending the contract timeline to accommodate the lender's decision-making process. 3. Short Sale Negotiation Agent: In some cases, a short sale negotiation agent is involved to assist the seller in communicating with the lender and facilitating the sale. The addendum may specify the broker's/agent's role and obligations throughout the process. 4. Documentation and Disclosures: The addendum may require the seller to provide various documents and disclosures related to the short sale, such as financial statements, hardship letters, and authorization to release financial information to the lender. 5. As-Is Condition: It is common for short sale transactions to be sold in "as-is" condition, meaning that the seller is unwilling or unable to make any repairs or improvements to the property. The addendum may include a clause stating that the buyer accepts the property in its current condition. Different variations or additional types of Orange California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist, depending on the specific requirements of the parties or the lender involved. These variations may include specific provisions regarding earnest money deposit, escrow instructions, title clearance, closing costs, or offer expiration dates. It is important to consult with a real estate professional or attorney familiar with Orange, California's specific regulations and practices ensuring that the Short Sale Addendum is correctly drafted and meets all legal requirements.Orange California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document that is used in real estate transactions in Orange, California, specifically for properties involved in a short sale. This addendum provides additional clauses and provisions to the standard contract, addressing the unique circumstances and requirements of a short sale transaction. The Orange California Short Sale Addendum includes key elements specific to short sales, such as: 1. Purchase Price: This section outlines the agreed-upon purchase price for the property, considering it is being sold as a short sale. It often includes terms related to the lender's approval and the buyer's acknowledgment of the property's distressed condition. 2. Approval of Lender: Since the seller is unable to cover the entire loan amount with the sale proceeds, the lender's approval is crucial. This addendum specifies that the sale is contingent upon the lender's approval and allows provisions for extending the contract timeline to accommodate the lender's decision-making process. 3. Short Sale Negotiation Agent: In some cases, a short sale negotiation agent is involved to assist the seller in communicating with the lender and facilitating the sale. The addendum may specify the broker's/agent's role and obligations throughout the process. 4. Documentation and Disclosures: The addendum may require the seller to provide various documents and disclosures related to the short sale, such as financial statements, hardship letters, and authorization to release financial information to the lender. 5. As-Is Condition: It is common for short sale transactions to be sold in "as-is" condition, meaning that the seller is unwilling or unable to make any repairs or improvements to the property. The addendum may include a clause stating that the buyer accepts the property in its current condition. Different variations or additional types of Orange California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may exist, depending on the specific requirements of the parties or the lender involved. These variations may include specific provisions regarding earnest money deposit, escrow instructions, title clearance, closing costs, or offer expiration dates. It is important to consult with a real estate professional or attorney familiar with Orange, California's specific regulations and practices ensuring that the Short Sale Addendum is correctly drafted and meets all legal requirements.
