Short Sale Addendum Texas Form
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People also ask
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What is the purpose of the short sale addendum?
If you're experiencing financial difficulties, a short sale might be an appealing option. But when going through this process, you must have all the correct documentation. In other words, you need a short sale addendum. A short sale addendum ensures that all short sale details are included within the sales agreement.
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What is a short sale addendum?
A short sale addendum is intended for a seller of real estate that owes more money on the property than it's worth.
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Does TREC have a short sale addendum?
If there is more than one lienholder or loan secured by the Property, this Addendum applies to each lienholder. The form of this addendum has been approved by the Texas Real Estate Commission for use only with similarly approved or promulgated forms of contracts.
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When must the option fee be paid under the TREC short sale addendum?
Paragraph 5A of the One to Four Family Residential Contract (Resale) (TREC 20-17) states that the buyer must the deliver the earnest money and the option fee to the escrow agent within three days of the effective date of the contract.
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When the short sale addendum is used how does the due diligence period work?
During the Due Diligence period, the buyer has the right to obtain property inspections, secure financing, and perform a thorough evaluation of the property. However, in a short sale transaction, the buyer may need to wait for the lender's approval of the short sale during the Due Diligence period.
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When must the option fee be paid under the TREC short sale addendum?
Paragraph 5A of the One to Four Family Residential Contract (Resale) (TREC 20-17) states that the buyer must the deliver the earnest money and the option fee to the escrow agent within three days of the effective date of the contract.
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How do short sales work in Texas?
What is a Short Sale? A short sale occurs when a property is sold for a price less than the current owner owes on their mortgage. The lender must review the terms and approve the sale before it can proceed. For example, a person may own a home with a mortgage with a balance of $250,000.
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What's the purpose of the Trec approved short sale addendum?
Use of the addendum provides that if the short sale is not approved by the date included in Paragraph D of the addendum the addendum gives the buyer the right to terminate the contract and receive their earnest money back.
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