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 Oregon Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a crucial document that addresses specific terms and conditions for properties involved in short sale transactions in Oregon. This addendum is designed to protect both the seller and buyer and ensure a smooth and transparent sale process. There are two main types of Oregon Short Sale Addendums to Contract for the Price, Purchase and Sale of Real Estate: 1. Standard Oregon Short Sale Addendum: This addendum includes essential clauses that outline the terms, conditions, and obligations of both parties involved in the short sale transaction. It covers aspects such as buyer's responsibility to conduct inspections, obtaining necessary permits, and compliance with local regulations. The addendum also covers the subject property's condition, disclosure of known defects, and various contingencies, such as the approval of short sale by the lender(s). 2. Customized Oregon Short Sale Addendum: In some cases, additional provisions may need to be included in the standard addendum to accommodate unique circumstances or requirements of the transaction. These customized addendums may address specific issues like liens, encumbrances, or conditions set forth by the lender(s). These addendums are tailored to meet the specific needs of the transaction and provide additional clarity to all parties involved. Additional relevant keywords for the Oregon Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate could include short sale process, short sale approval, lender's consent, waivers, buyer's due diligence, seller's disclosures, lien release, and closing timelines.
