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 Missouri Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document used in real estate transactions specifically related to short sales in the state of Missouri. This addendum provides detailed provisions and terms that are crucial when buying or selling a property involved in a short sale process. The Missouri Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is designed to protect both the buyer and the seller by outlining important terms and conditions unique to short sale transactions. This contractual addendum ensures transparency and clarity in the transaction, as well as mutually agreed-upon guidelines to facilitate a successful sale. Keywords: Missouri, short sale, addendum, contract, price, purchase, sale, real estate. Different types of Missouri Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate may include: 1. Missouri Short Sale Addendum for Residential Real Estate: This specific addendum applies to residential properties involved in short sale transactions in Missouri. It covers all aspects related to residential real estate, including terms regarding single-family homes, townhouses, condominiums, and duplexes. 2. Missouri Short Sale Addendum for Commercial Real Estate: For commercial properties involved in short sale transactions, this addendum holds provisions that address the unique aspects and considerations of such transactions. It covers aspects specific to commercial real estate, such as office buildings, retail spaces, industrial properties, and land. 3. Missouri Short Sale Addendum for Farm and Agricultural Real Estate: This addendum applies to properties classified as farm or agricultural land engaged in short sale transactions. It encompasses specific terms, provisions, and considerations for properties such as farms, ranches, vineyards, and agricultural land. 4. Missouri Short Sale Addendum for Multi-unit Properties: This type of addendum focuses on properties with multiple units involved in short sale transactions. It covers aspects related to the sale of duplexes, triplexes, apartment complexes, and other residential or commercial properties with multiple units. By utilizing the appropriate Missouri Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate, both buyers and sellers can protect their interests and ensure a smooth and legally compliant transaction in the fluctuating and complex world of short sale real estate.
