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.
Sacramento, California Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is a legal document specifically designed for parties involved in a short sale transaction in the Sacramento area. A short sale occurs when a homeowner sells their property for less than the outstanding mortgage balance, with the lender's approval. In such cases, a Short Sale Addendum is crucial as it outlines the terms, conditions, and provisions unique to these types of transactions. There are different variations of the Sacramento, California Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate. These variations may differ in terms of the specific clauses and requirements that need to be addressed. Some potential types or versions of the Sacramento Short Sale Addendum may include: 1. Standard Sacramento Short Sale Addendum: This is a commonly used version that includes the essential terms and conditions for the short sale transaction in Sacramento. It covers crucial aspects such as the purchase price, buyer's responsibilities, seller's disclosures, lender approvals, and other necessary provisions. 2. Sacramento Short Sale Addendum with Contingencies: This variation includes additional contingencies or conditions that must be met for the sale to proceed successfully. For example, it may require the buyer to secure financing or obtain certain inspections before finalizing the transaction. 3. Sacramento Short Sale Addendum for Investor Buyers: This type of addendum caters specifically to buyers who intend to purchase the property for investment purposes. It may include clauses related to rental agreements, property management, or other provisions relevant to investors. 4. Sacramento Short Sale Addendum with Tax Implications: This version may focus on addressing potential tax implications of the short sale transaction. It could include clauses addressing any potential tax liabilities, obligations, or requirements to ensure both parties are aware of their responsibilities. Regardless of the type or version used, the overarching purpose of the Sacramento, California Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is to establish clear and binding guidelines for the short sale transaction. This addendum protects both the buyer and the seller by ensuring that their rights, obligations, and expectations are explicitly outlined and agreed upon.Sacramento, California Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is a legal document specifically designed for parties involved in a short sale transaction in the Sacramento area. A short sale occurs when a homeowner sells their property for less than the outstanding mortgage balance, with the lender's approval. In such cases, a Short Sale Addendum is crucial as it outlines the terms, conditions, and provisions unique to these types of transactions. There are different variations of the Sacramento, California Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate. These variations may differ in terms of the specific clauses and requirements that need to be addressed. Some potential types or versions of the Sacramento Short Sale Addendum may include: 1. Standard Sacramento Short Sale Addendum: This is a commonly used version that includes the essential terms and conditions for the short sale transaction in Sacramento. It covers crucial aspects such as the purchase price, buyer's responsibilities, seller's disclosures, lender approvals, and other necessary provisions. 2. Sacramento Short Sale Addendum with Contingencies: This variation includes additional contingencies or conditions that must be met for the sale to proceed successfully. For example, it may require the buyer to secure financing or obtain certain inspections before finalizing the transaction. 3. Sacramento Short Sale Addendum for Investor Buyers: This type of addendum caters specifically to buyers who intend to purchase the property for investment purposes. It may include clauses related to rental agreements, property management, or other provisions relevant to investors. 4. Sacramento Short Sale Addendum with Tax Implications: This version may focus on addressing potential tax implications of the short sale transaction. It could include clauses addressing any potential tax liabilities, obligations, or requirements to ensure both parties are aware of their responsibilities. Regardless of the type or version used, the overarching purpose of the Sacramento, California Short Sale Addendum to Contract for the Price, Purchase, and Sale of Real Estate is to establish clear and binding guidelines for the short sale transaction. This addendum protects both the buyer and the seller by ensuring that their rights, obligations, and expectations are explicitly outlined and agreed upon.
