The Texas Short Sale Addendum is a form that must be attached to a contract for the sale of real estate when a short sale is being conducted in the state of Texas. A short sale is a real estate transaction in which the proceeds from the sale are not enough to cover the remaining balance on the loan. The Texas Short Sale Addendum outlines the agreement between the seller, buyer, and lender; it is designed to protect all parties involved in the transaction. The Addendum outlines the obligations of each party and typically includes an extension of closing date, a right of rescission, and the seller’s right to make repairs. There are two types of Texas Short Sale Addendum. The first is the “Standard Addendum” which is used for a normal short sale transaction. The second is the “Cooperative Short Sale Addendum” which is used when the lender agrees to accept less than the full amount due on the loan. The Texas Short Sale Addendum is an important step in the short sale process, as it helps to protect the interests of all parties involved. It is important to carefully read and understand the form prior to signing.