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 San Jose California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document that outlines specific terms and conditions related to a short sale transaction in the city of San Jose, California. When engaging in a short sale, which refers to the sale of a property for an amount less than what is owed on the mortgage, it is crucial to have a comprehensive addendum to the contract. This addendum is designed to protect both the buyer and the seller, ensuring a smooth and transparent transaction. The San Jose California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate typically includes the following key elements: 1. Property Information: This section includes the address, legal description, and parcel number of the property being sold. Ensuring accuracy in documenting the property details is essential for a successful transaction. 2. Purchase Price and Terms: The addendum stipulates the agreed-upon purchase price and the terms of payment between the buyer and the seller. It is vital to clearly state any contingencies or additional financial considerations related to the short sale. 3. Seller's Representations and Disclosures: Sellers are required to provide accurate information regarding the property's condition, any known defects, pending litigation, or other relevant disclosures. This section aims to promote transparency between the parties involved. 4. Buyer's Inspection Contingencies: Buyers may include contingencies in the addendum, allowing for a thorough inspection of the property before finalizing the purchase. This clause protects the buyer's interests by ensuring they have an opportunity to assess the condition of the property. 5. Lender Approval: In a short sale, the seller's mortgage lender must approve the transaction. The addendum outlines the necessary steps to seek this approval, including requirements for submitting financial information and documentation. 6. Closing and Escrow: This section establishes the timeline for the closing of the transaction and the necessary provisions for the escrow process. It may include details such as the date of possession, proration of property taxes, and allocation of closing costs. It is important to note that there may be variations or different types of San Jose California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate. These variations could depend on factors such as the involvement of multiple lenders, the property's unique circumstances, or specific seller or buyer requirements. To ensure compliance with local regulations and best practices, individuals engaging in a short sale transaction should consult with a qualified real estate attorney or professional familiar with San Jose's real estate market and regulations.The San Jose California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document that outlines specific terms and conditions related to a short sale transaction in the city of San Jose, California. When engaging in a short sale, which refers to the sale of a property for an amount less than what is owed on the mortgage, it is crucial to have a comprehensive addendum to the contract. This addendum is designed to protect both the buyer and the seller, ensuring a smooth and transparent transaction. The San Jose California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate typically includes the following key elements: 1. Property Information: This section includes the address, legal description, and parcel number of the property being sold. Ensuring accuracy in documenting the property details is essential for a successful transaction. 2. Purchase Price and Terms: The addendum stipulates the agreed-upon purchase price and the terms of payment between the buyer and the seller. It is vital to clearly state any contingencies or additional financial considerations related to the short sale. 3. Seller's Representations and Disclosures: Sellers are required to provide accurate information regarding the property's condition, any known defects, pending litigation, or other relevant disclosures. This section aims to promote transparency between the parties involved. 4. Buyer's Inspection Contingencies: Buyers may include contingencies in the addendum, allowing for a thorough inspection of the property before finalizing the purchase. This clause protects the buyer's interests by ensuring they have an opportunity to assess the condition of the property. 5. Lender Approval: In a short sale, the seller's mortgage lender must approve the transaction. The addendum outlines the necessary steps to seek this approval, including requirements for submitting financial information and documentation. 6. Closing and Escrow: This section establishes the timeline for the closing of the transaction and the necessary provisions for the escrow process. It may include details such as the date of possession, proration of property taxes, and allocation of closing costs. It is important to note that there may be variations or different types of San Jose California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate. These variations could depend on factors such as the involvement of multiple lenders, the property's unique circumstances, or specific seller or buyer requirements. To ensure compliance with local regulations and best practices, individuals engaging in a short sale transaction should consult with a qualified real estate attorney or professional familiar with San Jose's real estate market and regulations.