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 Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legally binding document that is essential in the process of buying or selling a property in Santa Clara, California. This addendum is specifically designed to address the unique considerations and conditions that arise in a short sale transaction. A short sale occurs when a property is sold for an amount less than the outstanding mortgage balance owed by the homeowner. It is typically used as an alternative to foreclosure and requires the lender's approval. To navigate this complex process, the use of a Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is highly recommended. The content of the addendum will vary based on the specific circumstances of the short sale transaction, but some typical elements may include: 1. Purchase Price: The addendum will outline the agreed-upon purchase price for the property. This price usually takes into account the outstanding mortgage balance, any liens, and the market value of the property. 2. Short Sale Approval: This section will detail the responsibilities and timelines associated with obtaining the lender's approval for the short sale. It may include requirements for providing necessary documentation, communicating with the lender, and obtaining a written short sale approval letter. 3. Buyer's Contingencies: The addendum may outline specific contingencies that protect the buyer's interests during the short sale process. These may include provisions for property inspections, financing contingencies, and the right to terminate the contract in case of a failure to obtain short sale approval. 4. Seller's Obligations: This section will specify the seller's responsibilities, such as cooperating with the lender, providing necessary financial information, and making required disclosures. It may also outline the consequences of the seller's failure to fulfill these obligations. 5. Closing and Escrow: The addendum may include provisions related to the closing and escrow procedures specific to short sale transactions. This may include deadlines for completing the transaction and requirements for the release of funds. It is important to note that the Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate can have different variations depending on the specific circumstances or the preferences of the parties involved. For example, there may be specific addendums designed for commercial properties, residential properties, or condominiums. In conclusion, the Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document when engaging in a short sale transaction in Santa Clara, California. It provides a framework to address the unique considerations and conditions associated with this type of real estate transaction, ensuring that all parties involved are protected and that the process moves forward smoothly.The Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legally binding document that is essential in the process of buying or selling a property in Santa Clara, California. This addendum is specifically designed to address the unique considerations and conditions that arise in a short sale transaction. A short sale occurs when a property is sold for an amount less than the outstanding mortgage balance owed by the homeowner. It is typically used as an alternative to foreclosure and requires the lender's approval. To navigate this complex process, the use of a Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is highly recommended. The content of the addendum will vary based on the specific circumstances of the short sale transaction, but some typical elements may include: 1. Purchase Price: The addendum will outline the agreed-upon purchase price for the property. This price usually takes into account the outstanding mortgage balance, any liens, and the market value of the property. 2. Short Sale Approval: This section will detail the responsibilities and timelines associated with obtaining the lender's approval for the short sale. It may include requirements for providing necessary documentation, communicating with the lender, and obtaining a written short sale approval letter. 3. Buyer's Contingencies: The addendum may outline specific contingencies that protect the buyer's interests during the short sale process. These may include provisions for property inspections, financing contingencies, and the right to terminate the contract in case of a failure to obtain short sale approval. 4. Seller's Obligations: This section will specify the seller's responsibilities, such as cooperating with the lender, providing necessary financial information, and making required disclosures. It may also outline the consequences of the seller's failure to fulfill these obligations. 5. Closing and Escrow: The addendum may include provisions related to the closing and escrow procedures specific to short sale transactions. This may include deadlines for completing the transaction and requirements for the release of funds. It is important to note that the Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate can have different variations depending on the specific circumstances or the preferences of the parties involved. For example, there may be specific addendums designed for commercial properties, residential properties, or condominiums. In conclusion, the Santa Clara California Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document when engaging in a short sale transaction in Santa Clara, California. It provides a framework to address the unique considerations and conditions associated with this type of real estate transaction, ensuring that all parties involved are protected and that the process moves forward smoothly.
