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.
San Diego, California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is an important legal document designed to address specific terms and conditions related to short sale transactions in the real estate market. A short sale occurs when a homeowner sells their property for less than the balance owed on the mortgage. This type of addendum is commonly utilized in San Diego, California, where the real estate market is dynamic and fast-paced. It provides a framework for both the buyer and the seller to navigate the intricacies and unique aspects of a short sale transaction. The San Diego, California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate typically includes various essential clauses, such as: 1. Identification of Parties: This section clearly identifies the buyer, seller, and any legal representatives involved in the transaction. 2. Purchase and Sales Terms: This clause outlines the terms and conditions of the agreement, specifying the purchase price, deposit amount, financing arrangement, and any contingencies related to the short sale. 3. Seller's Representation and Warranties: This section ensures that the seller provides accurate and complete information regarding the property's condition, title, and potential liens. 4. Buyer's Responsibilities: This clause outlines the buyer's obligations, including property inspection, due diligence, and adherence to contractual timelines. 5. Approval Contingency: San Diego short sale addendums often include a contingency stating that the transaction is subject to the approval of the seller's lender(s). This allows the seller time to negotiate with their lender for the short sale. 6. Default and Remedies: This clause specifies the consequences of default by either the buyer or seller, as well as the available remedies. 7. Closing and Escrow: This section sets forth the closing date and the terms under which the escrow will be handled. It is important to note that there may be different types or variations of short sale addendums specific to the prevailing laws and local practices within the San Diego, California real estate market. Some additional variations may incorporate clauses related to mortgage insurance, negotiation with second lien holders, or possible tax implications. In conclusion, the San Diego, California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a significant legal document, tailored to address the complexities of short sale transactions. This addendum provides clarity, protection, and a structured framework for both buyers and sellers involved in these types of real estate transactions.San Diego, California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is an important legal document designed to address specific terms and conditions related to short sale transactions in the real estate market. A short sale occurs when a homeowner sells their property for less than the balance owed on the mortgage. This type of addendum is commonly utilized in San Diego, California, where the real estate market is dynamic and fast-paced. It provides a framework for both the buyer and the seller to navigate the intricacies and unique aspects of a short sale transaction. The San Diego, California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate typically includes various essential clauses, such as: 1. Identification of Parties: This section clearly identifies the buyer, seller, and any legal representatives involved in the transaction. 2. Purchase and Sales Terms: This clause outlines the terms and conditions of the agreement, specifying the purchase price, deposit amount, financing arrangement, and any contingencies related to the short sale. 3. Seller's Representation and Warranties: This section ensures that the seller provides accurate and complete information regarding the property's condition, title, and potential liens. 4. Buyer's Responsibilities: This clause outlines the buyer's obligations, including property inspection, due diligence, and adherence to contractual timelines. 5. Approval Contingency: San Diego short sale addendums often include a contingency stating that the transaction is subject to the approval of the seller's lender(s). This allows the seller time to negotiate with their lender for the short sale. 6. Default and Remedies: This clause specifies the consequences of default by either the buyer or seller, as well as the available remedies. 7. Closing and Escrow: This section sets forth the closing date and the terms under which the escrow will be handled. It is important to note that there may be different types or variations of short sale addendums specific to the prevailing laws and local practices within the San Diego, California real estate market. Some additional variations may incorporate clauses related to mortgage insurance, negotiation with second lien holders, or possible tax implications. In conclusion, the San Diego, California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a significant legal document, tailored to address the complexities of short sale transactions. This addendum provides clarity, protection, and a structured framework for both buyers and sellers involved in these types of real estate transactions.
