Your Buyer Will Need to Sign The Seller’s Specific Short Sale Addendum

The Short Sale Addendum

Short SaleEven as Birmingham, Alabama short sales continue to be a significant part of the real estate landscape, they are still a mystery to the vast majority of buyers as well as some real estate agents.

Off the top, both short sale buyers and short sale sellers should know that there are certain requirements that must be met by the seller’s bank.

The seller’s mortgage company (bank) has their own short sale addendum that all parties (buyer, seller, listing agent and selling agent) will need to sign.   But in addition to the bank’s addendum, I always have buyers sign a short sale addendum upfront.  It doesn’t matter whether I am the listing agent or the buyer’s agent, all buyers and their agents must sign this addendum.   This addendum will include, but not be limited to the following:

  • Offer will not be submitted to seller or seller’s mortgage company without a pre-approval letter or proof of funds
  • Purchaser, seller and agents acknowledge that the short sale closing date (requested on offer to purchase) of ______________ cannot be guaranteed due to the nature of the short sale processes.

Please note that:  The short sale process is complex and involves many different parties who must  all agree to take a loss on an outstanding debt (i.e., investors, additional lienholders, and mortgage insurance).  This leads to a longer timeline than a traditional home sale and can take months to complete if approved by the bank.

  • All parties understand that the listing price of $_____ has (__)   has not (___) been pre-approved by the seller’s mortgage company.
  • Purchaser understands that seller has the right to reject any lender approval that does not guarantee that the seller will be relieved of future undue financial hardship including but not limited to the request for cash contribution at closing and/or deficiency judgment or promissory note.
  • Purchaser understands that although seller may accept offer, the seller’s mortgage company must must also be on board with the terms negotiated by the seller and buyer.
  • This is an AS-IS purchase. Seller will not make repairs.
  • All parties understand that the mortgage company may order a BPO or appraisal and will not guarantee a turnaround time.
  • Additional addenda may be required by lender.

Why the Addendum?

You may be wondering why I employ such an addendum.  Well the reason is very simple, I think every buyer should understand these basic precepts of the short sale process.  If I am the listing agent, I want to make sure that the short sale buyer is aware of these contingencies just in case they are working with an agent that may not be knowledgeable about short sales or an agent that doesn’t want to “frighten” a potential buyer aware.

The short sale process is complex enough without everyone being on the same page from the beginning.

My motto is simple:  Put All Your Cards on the Table When it Comes to Real Estate Transactions

Whether you’re looking to buy real estate your sell your existing property, call or send me and email today, so we can discuss how I can best serve your Birmingham-Hoover Metro area real estate needs!

Exceptional Service Because You Deserve It!

Charita H. Cadenhead
Birmingham Alabama Realtor®
(205) 527-1112 – Direct
(800) 496-7431 – Fax

Comments or questions are welcome.

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  1. 4 beds, 2 baths
    Home size: 1,808 sq ft
  2. 2 beds, 2 baths
    Home size: 1,290 sq ft
  3. 2 beds, 3 baths
    Home size: 1,406 sq ft
  4. 4 beds, 3 baths
    Home size: 2,357 sq ft
  5. 3 beds, 2 baths
    Home size: 979 sq ft
  6. 3 beds, 3 baths
    Home size: 2,080 sq ft
  7. 3 beds, 3 baths
    Home size: 1,708 sq ft
  8. 2 beds, 3 baths
    Home size: 1,346 sq ft
  9. 1 bed, 1 bath
    Home size: 733 sq ft
  10. 3 beds, 3 baths
    Home size: 1,472 sq ft
  11. 3 beds, 2 baths
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  12. 3 beds, 2 baths
    Home size: 1,790 sq ft
  13. 2 beds, 2 baths
    Home size: 1,915 sq ft
  14. 4 beds, 3 baths
    Home size: 2,000 sq ft
  15. 4 beds, 3 baths
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  16. 2 beds, 3 baths
    Home size: 1,410 sq ft
  17. 2 beds, 2 baths
  18. 4 beds, 2 baths
    Home size: 1,914 sq ft
  19. 4 beds, 3 baths
    Home size: 2,406 sq ft
  20. 2 beds, 2 baths
    Home size: 1,492 sq ft
  21. 2 beds, 3 baths
    Home size: 1,430 sq ft
  22. 7 beds, 5 baths
    Home size: 3,263 sq ft
  23. 4 beds, 5 baths
    Home size: 3,661 sq ft
  24. 3 beds, 2 baths
    Home size: 1,224 sq ft
  25. 3 beds, 2 baths
    Home size: 1,387 sq ft
  26. 2 beds, 1 bath
    Home size: 955 sq ft
  27. 4 beds, 4 baths
    Home size: 2,680 sq ft
  28. 5 beds, 4 baths
    Home size: 3,340 sq ft
  29. 3 beds, 3 baths
    Home size: 1,812 sq ft
  30. 3 beds, 3 baths
    Home size: 1,650 sq ft

See all Downtown Birmingham Condos and Lofts.
(all data current as of 12/15/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

 

  1. 4 beds, 2 baths
    Home size: 1,808 sq ft
    Year built: 1976
    Days on market: 249
  2. 2 beds, 2 baths
    Home size: 1,290 sq ft
    Year built: 2012
    Days on market: 252
  3. 2 beds, 3 baths
    Home size: 1,406 sq ft
    Year built: 1983
    Days on market: 252
  4. 4 beds, 3 baths
    Home size: 2,357 sq ft
    Year built: 1965
    Days on market: 252
  5. 3 beds, 2 baths
    Home size: 979 sq ft
    Year built: 1960
    Days on market: 253
  6. 3 beds, 3 baths
    Home size: 2,080 sq ft
    Year built: 1951
    Days on market: 255
  7. 3 beds, 3 baths
    Home size: 1,708 sq ft
    Year built: 1987
    Days on market: 258
  8. 2 beds, 3 baths
    Home size: 1,346 sq ft
    Year built: 1981
    Days on market: 260
  9. 1 bed, 1 bath
    Home size: 733 sq ft
    Year built: 1983
    Days on market: 261
  10. 3 beds, 3 baths
    Home size: 1,472 sq ft
    Year built: 1988
    Days on market: 261

See all Short Sales.
(all data current as of 12/15/2017)

Listing information deemed reliable but not guaranteed. Read full disclaimer.

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