oldbicycle IMPORTANT SHORT SALE DOCUMENTS

1. The Listing Addendum and 2.) The Purchase Addendum

 1. SHORT SALE LISTING ADDENDUMS – Short Sales have a unique issue in that the lender may pursue the Seller after the close of escrow for the short fall of the payment.  This is a great potential liability for any listing salesperson.  That is why the Addendum To Listing Agreement-Short Sale  is required on all short sale listings.  This important addendum to the Listing Agreement warns the Seller of tax, legal and other consequences of the short sale.  Also Prudential®, Americana Group, REALTORS® has its own Seller Performing Short Sale Memorandum  for short sale sellers discussing even further legal consequences.  This important memo details that the Internal Revenue Service will consider debt forgiveness by the lender as income, and that there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid.  This is uncharted territory and the Asset Managers have different approaches to debt forgiveness.  These important forms serve to educate your clients for all parties protections.

 2. SHORT SALE PURCHASE ADDENDUMS.  Short Sales have unique issues in presenting offers due to the lender having the ultimate control in which an offer will be accepted.  There is potential liability from disgruntled buyers.  That is why the SHORT Sale Addendum To Purchase Agreement  is useful for all listing sold short sales.  You must take great care in keeping all buyers adequately informed and this form sets the stage for your ability, as the listing salesperson, to best control the process.  Many complaints are being issued concerning how offers are being presented to the bank.  Always start with getting this Sale Addendum To Purchase Agreement agreed to by the Buyer and from there just, “keep it simple.”  Keep those buyers’ salespersons informed of the progress.  I suggest a weekly email to all interested parties representatives of any news or non-news you have from the lenders.

 OTHER TIPS – The Lucky 7 – Here are the top 7 issues of short sales  as presented in your upcoming office meetings.