Forms Tell of a Complex Market
Short Sale Addendum
This is an addendum to the □ Residential Purchase and Sale Agreement □ Other _______________________________________________________________________
(“Agreement”) dated ______________ on property known as ______________________
______________________________________________________ (“Property”) between
_______________________________________________________________(“Seller”),
and ____________________________________________________________(“Buyer”).
Short sale listing: Broker has advised Seller that the amount of money necessary to pay in full all loans and other debt obligations that are secured by a lien(s), including any IRS liens, on the Property as well as Broker commissions and other costs of sale may exceed the current market value of the Property. Accordingly, in order to sell the Property, Seller may be required to: (1) deposit his/her own funds into escrow, (2) obtain the agreement of secured Lender(s) or creditor(s) to accept, as payment in full, less money than they are owed (Short Sale), and/or (3) pay back some or all of the shortage after the sale is complete. Broker has advised Seller that other options, such as, but not limited to, negotiating a modification of existing loans/liens, refinancing, bankruptcy, foreclosure, or deed in lieu of foreclosure may be more appropriate for Seller.
The Forms Tell About a Complex Market
No doubt the
Where’s our short sales addendum they ask? A short sale is where the house being sold is worth less on the market than the owner owes in mortgage balance or to lien holders. This home is in foreclosure, can my client sell it before the public sale date? My client must sell their home before than can take advantage of the sold buyer’s market: how do contingent sales work, again?
Classes now proliferate to teach agents the ins-and-outs of short sales, how to understand the foreclosure process, and how to navigate contingent sales where a home must be sold so a buyer can trade up.
Yes, we still see the occasional multiple offer and even once in awhile dust off the escalator clause form, but the forms agents more commonly request these days reflect a market if not stamped then pock marked with a national trend. And these forms – short sales, contingent sales, sale of home in mortgage foreclosure – are the most complex in our industry and call for the highest degree of professional care.
Now, more than ever the public needs the best trained, experienced professionals. Given today’s complex market, that would be good form.
Thank you for your kind attention.
