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.
Travis Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used in real estate transactions involving short sales in Travis County, Texas. This addendum serves as an important agreement between the buyer and seller, outlining specific terms and conditions related to the property's purchase and sale. The Travis Texas Short Sale Addendum to Contract addresses the unique circumstances of a short sale, which occurs when the proceeds from the sale fall short of the outstanding mortgage balance owed by the seller. This addendum is crucial to protect the interests of both parties involved and ensure a smooth and fair transaction. The content of the Travis Texas Short Sale Addendum may vary depending on the specific agreement and the needs of the parties. However, it typically includes the following key elements: 1. Purchase Price: This section outlines the agreed-upon price for the property, which is often lower than the outstanding mortgage balance. 2. Closing Costs: The addendum may address who will be responsible for covering various closing costs, such as title insurance, escrow fees, and property taxes. 3. Contingencies: It is common for the addendum to include contingencies that must be met for the sale to proceed. These may include obtaining necessary approvals from the lender, securing financing, or completing a satisfactory inspection. 4. Disclosure of Property Condition: The addendum may require the seller to disclose any known defects or issues with the property to the buyer. This ensures transparency and allows the buyer to make an informed decision. 5. Approval by Lender: As the property is being sold for less than the outstanding mortgage balance, the lender's approval is crucial. The addendum will specify the timeline and process for obtaining this approval. 6. Surplus Funds Distribution: In case the sale generates funds exceeding the mortgage balance, the addendum may outline how these surplus funds will be handled — typically guidelines for disbursing them to the seller or towards outstanding liens. It is important to note that there may be variations or additional elements in different types or versions of the Travis Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate. These variations may arise from specific county or lender requirements, attorney modifications, or other factors unique to the transaction. To ensure compliance with local laws and regulations, it is strongly advised to consult a qualified real estate attorney or professional knowledgeable in short sales and local real estate practices when drafting or executing the Travis Texas Short Sale Addendum.Travis Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used in real estate transactions involving short sales in Travis County, Texas. This addendum serves as an important agreement between the buyer and seller, outlining specific terms and conditions related to the property's purchase and sale. The Travis Texas Short Sale Addendum to Contract addresses the unique circumstances of a short sale, which occurs when the proceeds from the sale fall short of the outstanding mortgage balance owed by the seller. This addendum is crucial to protect the interests of both parties involved and ensure a smooth and fair transaction. The content of the Travis Texas Short Sale Addendum may vary depending on the specific agreement and the needs of the parties. However, it typically includes the following key elements: 1. Purchase Price: This section outlines the agreed-upon price for the property, which is often lower than the outstanding mortgage balance. 2. Closing Costs: The addendum may address who will be responsible for covering various closing costs, such as title insurance, escrow fees, and property taxes. 3. Contingencies: It is common for the addendum to include contingencies that must be met for the sale to proceed. These may include obtaining necessary approvals from the lender, securing financing, or completing a satisfactory inspection. 4. Disclosure of Property Condition: The addendum may require the seller to disclose any known defects or issues with the property to the buyer. This ensures transparency and allows the buyer to make an informed decision. 5. Approval by Lender: As the property is being sold for less than the outstanding mortgage balance, the lender's approval is crucial. The addendum will specify the timeline and process for obtaining this approval. 6. Surplus Funds Distribution: In case the sale generates funds exceeding the mortgage balance, the addendum may outline how these surplus funds will be handled — typically guidelines for disbursing them to the seller or towards outstanding liens. It is important to note that there may be variations or additional elements in different types or versions of the Travis Texas Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate. These variations may arise from specific county or lender requirements, attorney modifications, or other factors unique to the transaction. To ensure compliance with local laws and regulations, it is strongly advised to consult a qualified real estate attorney or professional knowledgeable in short sales and local real estate practices when drafting or executing the Travis Texas Short Sale Addendum.
