Short Sale Addendum

Downloads: 173

The short sale addendum is put into practice when selling a property for less than what is owed on the mortgage. In order to achieve this, the seller should first obtain the bank’s approval for a short sale instead of going through the foreclosure process. The benefit of a short sale to the lender, as opposed to foreclosure, is that they can avoid the hassle of repossessing the property and carrying out an auction which can be a time-consuming procedure that can cost them more money in the end. The advantage of this type of sale to the seller is that it is less harmful to their credit as they can evade the negative impact of foreclosure and possible bankruptcy. The form will require the seller & purchaser’s information, amount of days in which the seller has to provide the buyer with the bank’s approval, and the number of days from the time of delivering the notice that the closing must occur. After inserting all the essential details, both the seller(s) and buyer(s) must sign the addendum on the indicated lines. (This is to be included with the real estate purchase agreement executed for the transfer of the property.)

Banks that Offer Short Sale Addendums