What is required for lender approval?

Lenders typically require a formal short-sale submission package including the fully executed addendum, hardship statement, payoff figures, and supporting financial documents; approval must be in writing from the lender or its loss-mitigation unit to satisfy the addendum condition.

Can the addendum be signed electronically?

Yes. Electronic signatures meeting ESIGN Act and UETA standards are legally valid in most U.S. transactions; ensure the platform captures intent, signer attribution, and an audit trail acceptable to the lender and title company.

Are notarization or witnesses required in Louisiana?

Louisiana uses civil-law formalities for certain real estate instruments; while an addendum often does not require notarization, many lenders and title companies request notarized signatures and two witnesses for closing documents in Louisiana.

Who can sign for a corporate seller?

A corporate seller must be signed by an authorized officer or agent as defined in corporate resolutions; include a statement confirming authority and attach evidence such as a board resolution if requested by the lender or title company.

What if the lender denies the short sale?

If the lender denies approval, follow the contract's termination or cure provisions; buyers frequently receive deposit refunds when lender approval is an express contingency and the contract specifies return timelines.

How to correct errors after signing?

Minor clerical errors may be corrected by mutual written amendment signed by all parties; material changes generally require a formal amendment or new addendum and may need renewed lender approval, depending on the lender's policies.

Electronic Signature
Templates
Real estate
Louisiana Short Sale Addendum to Purchase Agreement

Louisiana Short Sale Addendum to Purchase Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

LOUISIANA SHORT SALE ADDENDUM

I. The Parties. This Short Sale Addendum (“Addendum”) is to be made part of the Purchase Agreement dated (“Agreement”) made between (“Seller”) and (“Buyer”) for the property located at , City of , State of Louisiana (“Property”). In addition to the terms and conditions of the Agreement, Buyer and Seller shall be subject to the following:

II. Short Sale Consent. Seller represents to the Buyer that the Purchase Price as stated in the Agreement is less than the total amount owed by the Seller to their creditor(s). Therefore, this Agreement shall be subject to the creditor(s) written consent. Seller shall have days from the Effective Date of the Agreement to obtain such written consent from the creditor(s). If the creditor(s) provides written consent approving the Agreement, Buyer shall be notified within twenty-four (24) hours.

III. Termination of Agreement. Buyer shall have the right to terminate this Agreement under any of the following:

a.) Seller is not able to obtain written consent from the creditor(s) within the specified time-frame; or

b.) At any time prior to the Seller providing written consent from the creditor(s) approving the Agreement.

During such termination, the Buyer shall be entitled to their Earnest Money to be returned in-full by the Seller, Seller’s Agent or any other third (3rd) party holding the escrowed funds.

IV. Terms of Agreement. Notwithstanding anything to the contrary in the Agreement, except for those set forth in this Addendum, all time periods and deadlines for performance set forth in the Agreement, including the obligation to deliver the earnest money, shall run from the date Buyer receives a copy of the creditor(s) written consent.

V. Marketing the Property. Unless otherwise stated in the Agreement, Seller shall have the right to continue marketing the Property for sale as well as negotiate and accept other offers and submit those acceptable by the Seller to creditor(s). Buyer shall be notified of the existence of such other offers, however, details of such offers shall remain confidential.

VI. Closing Date. The Closing Date shall be the date as mentioned in the Agreement or days from the Seller notifying the Buyer of the creditor(s) written consent to approving the Agreement, whichever is later.

Buyer’s Signature Date

Print Name

Buyer’s Signature Date

Print Name

Seller’s Signature Date

Print Name

Seller’s Signature Date

Print Name

What this Louisiana Short Sale Addendum does

The Louisiana Short Sale Addendum to Purchase Agreement is a contract attachment used when the seller owes more on the mortgage than the agreed purchase price and the lender must accept less than full payoff. It clarifies the buyer and seller obligations, identifies lender approval as a condition precedent, sets timelines for lender response and closing, and allocates costs and contingencies unique to short-sale scenarios in Louisiana property transactions.

Why add this short sale addendum to your contract

Using a tailored addendum protects buyer and seller expectations by documenting lender-approval contingencies, required disclosures, and timing. It reduces uncertainty during negotiation and creates a clear record of responsibilities while preserving contractual remedies if the lender denies approval or deadlines lapse.

Who typically completes this Louisiana addendum

Real estate agents, closing attorneys, and transaction coordinators commonly prepare the short sale addendum when a seller reports negative equity and a lender short payoff is anticipated.

Listing agents managing seller expectations and lender communications during a short sale
Buyers and buyer agents protecting deposit, inspection rights, and financing contingencies
Closing attorneys or title companies coordinating lender approval, payoff figures, and closing conditions

All parties should review lender-specific requirements; attorneys can confirm whether additional disclosures or notarizations are needed under Louisiana law.

Step-by-step: completing the Louisiana short sale addendum

Follow this sequence to reduce delays and preserve enforceability when adding a short sale clause to a purchase agreement.

01

1. Identify parties: Enter full legal names for buyer(s) and seller(s) as shown on ID.
02

2. List property: Provide full street address, parish, and legal description if available.
03

3. State lender terms: Include lender name, contact, and required approval deadline.
04

4. Add contingencies: Specify buyer financing, inspection rights, and an approval-based closing condition.

Essential data fields to include

Names and IDs: Full legal names

Property details: Street, parish, ZIP

Lender info: Department contact

Price terms: Purchase price and net proceeds

Deadlines: MM/DD/YYYY dates

Signatures: Signed and dated

Key clauses to include in a professional addendum

A well-drafted Louisiana short sale addendum combines lender conditions, buyer protections, and closing mechanics to reduce execution risk.

Lender-Approval Condition

State that the contract is contingent upon lender acceptance of a short payoff in writing, specify acceptable lender documentation, and make lender approval a condition precedent to closing.

Seller Representations

Require the seller to certify accuracy of payoff figures, disclose subordinate liens, and confirm no pending bankruptcy that would impede lender approval or closing.

Buyer Remedies

Define buyer rights if lender denies approval, including deposit return timelines, extension options, and whether buyer can pursue damages or terminate without penalty.

Closing and Escrow Instructions

Specify who will obtain payoff demands, how escrow will handle short payoffs, and allocation of customary closing costs associated with a short sale.

Timing and Extensions

Set specific response windows for lender review, allow reasonable extension requests, and state maximum allowable extension periods or automatic termination triggers.

Tax and HOA Obligations

Address responsibility for unpaid taxes, assessments, and HOA dues; specify whether seller will clear these items prior to closing or credit the buyer.

How to configure the addendum for online completion

Set up a digital workflow that captures required fields, signer order, and conditional approvals to mirror the paper process and preserve audit data.

Field	Configuration
Property Address Field	Required text field; validate ZIP format
Lender Approval Upload	File upload field for written acceptance
Signature Order	Seller signs before buyer or as agreed
Deadline Fields	Date pickers with MM/DD/YYYY enforcement

Where to send the completed addendum

Route copies to all transaction parties and the lender to ensure coordinated review and to document the short sale condition.

Seller and Buyer: Each receives an executed copy for records and funding instructions.
Lender / Loss Mitigation: Send to the lender's short-sale contact for written approval or denial.
Listing Broker: Broker retains one copy in transaction file and updates MLS status as needed.
Closing / Title Company: Title receives approved payoff documentation to prepare closing package.

Digital delivery and signature requirements

Confirm that your e-signature workflow preserves intent, attribution, and a retrievable audit trail consistent with ESIGN and UETA.

Document Format: PDF or DOCX preferred
Signer Authentication: Email link with optional SMS code
Audit Trail: Timestamp, IP, and action log

Use an e-signature platform that supports secure storage, tamper-evident signed PDFs, and export of audit records for title and lender review.

Common timing and deadline expectations

Short sales introduce additional lender and closing milestones; document these dates explicitly to prevent disputes and preserve contingency rights.

Lender Response Window:

30–90 days typical for short-sale review

Buyer Inspection Period:

Standard inspection deadline tied to approval contingency

Closing Date:

Set conditional on lender approval and available payoff

Extension Requests:

Mutual consent required; specify maximum days

Deposit Release:

Return timeline if lender denial occurs

Common mistakes to avoid when preparing the addendum

Omitting the lender's full contact details, which delays approval because short-sale teams cannot locate the account quickly.
Leaving approval dates vague or open-ended, causing disputes over whether an extension was agreed or the contract terminated.
Failing to disclose subordinate liens or unpaid taxes, which can surprise buyers and complicate title clearance.
Using informal signatures or initials when full signatures are required by the lender or title company, risking invalid acceptance.

Risks and consequences of incorrect or incomplete addenda

Contract Voidance: Buyer may cancel

Deposit Loss: Disputed forfeiture

Closing Delays: Extended lender review

Title Issues: Clouded title

Legal Liability: Breach claims possible

Tax Exposure: Potential seller income reporting

eSignature pricing and capability snapshot for short sale workflows

Compare starting costs and common feature availability for eSignature vendors used in real estate short sale transactions; signNow is shown first for comparison consistency.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about Louisiana short sale addenda

Answers to common questions about form validity, lender approval, e-signing, notarization, and signature authority for short sale addenda in Louisiana.

Need help? Contact support

What is required for lender approval?
Lenders typically require a formal short-sale submission package including the fully executed addendum, hardship statement, payoff figures, and supporting financial documents; approval must be in writing from the lender or its loss-mitigation unit to satisfy the addendum condition.
Can the addendum be signed electronically?
Yes. Electronic signatures meeting ESIGN Act and UETA standards are legally valid in most U.S. transactions; ensure the platform captures intent, signer attribution, and an audit trail acceptable to the lender and title company.
Are notarization or witnesses required in Louisiana?
Louisiana uses civil-law formalities for certain real estate instruments; while an addendum often does not require notarization, many lenders and title companies request notarized signatures and two witnesses for closing documents in Louisiana.
Who can sign for a corporate seller?
A corporate seller must be signed by an authorized officer or agent as defined in corporate resolutions; include a statement confirming authority and attach evidence such as a board resolution if requested by the lender or title company.
What if the lender denies the short sale?
If the lender denies approval, follow the contract's termination or cure provisions; buyers frequently receive deposit refunds when lender approval is an express contingency and the contract specifies return timelines.
How to correct errors after signing?
Minor clerical errors may be corrected by mutual written amendment signed by all parties; material changes generally require a formal amendment or new addendum and may need renewed lender approval, depending on the lender's policies.

Explore Templates

Affidavit of Lost Form Motion to Release Defendant and Set Reasonable Bail Short Sale Form Affidavit of No Lien General Journal Sales Receipt

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now