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 Tennessee Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a legal document that outlines the specific terms and conditions associated with a short sale transaction in the state of Tennessee. This addendum is crucial in ensuring a smooth and transparent process between the buyer, seller, and the mortgage lender involved in the short sale. There are different types of Tennessee Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate depending on the specific requirements and agreements involved in the transaction. These can include: 1. Standard Tennessee Short Sale Addendum: This addendum includes the basic terms and conditions for a short sale, such as the agreed-upon purchase price, the responsibilities of each party, and the timeline for completing the transaction. 2. Tennessee Short Sale Addendum with Contingencies: This type of addendum includes additional contingencies that must be satisfied for the short sale transaction to proceed. These contingencies may involve the approval of the mortgage lender, the completion of a home inspection, or the buyer securing financing. 3. Tennessee Short Sale Addendum with Seller Contributions: This addendum includes provisions for seller contributions to cover certain expenses associated with the short sale, such as unpaid property taxes, outstanding liens, or closing costs. 4. Tennessee Short Sale Addendum with Pre-Approval: This type of addendum is used when the seller has already received pre-approval from their mortgage lender for a short sale. It outlines the specific terms and conditions of the pre-approved short sale, including the acceptable purchase price and any lender requirements that must be fulfilled. In summary, the Tennessee Short Sale Addendum to Contract for the Price, Purchase and Sale of Real Estate is a critical legal document that helps facilitate a short sale transaction in Tennessee. It ensures that all parties involved are aware of their responsibilities and rights, and it helps protect the interests of the buyer, seller, and mortgage lender.
