NVAR Short Sale Addendum Is Out Today - two other forms also released
The NVAR Board of directors approved three new forms at their last meeting and posted them online in the Members Only Section of the NVAR Website
The most anticipated of the three is the new SHORT SALE CONTINGENCY ADDENDUM
TO REGIONAL SALES CONTRACT.
Form K1351 attempts to define what is meant by the term Short Sale as used in the addendum, has the parties acknowledge that approval is required, and what that approval must contain (i.e. that the lender will accept the seller's net proceeds as full payment and will release liens associated with the loan). The Seller also agrees to cooperated with all of the interested parties in obtaining the lender approval and consent.
The form also give the Seller a deadline to obtain the necessary approvals, after which: "Purchaser may deliver notice to Seller of Purchaser’s intent to void the Contract. Seller shall have three (3) business days from receipt such Notice to deliver written evidence of creditor(s)’ approval to the Purchaser, or this Contract will be void."
The Seller also has the right to void the contract upon receipt of a written rejection of the proposed short sale.
Because the short sale approval often takes a long time, and Purchaser's may not wish to spend money on inspections and appraisals without some certainty that the transaction will eventually close, the form allows the parties to choose whether these contingency deadlines should run from the date of short sale approval or from the date of ratification (as is normally the case).
Please look at the form and LEAVE COMMENTS HERE by clicking on teh comment link below the post. You may also wish to subscribe to have the blog e-mailed to you, so you won't miss my posts on the new Appraisal Contigency Removal Form or the new Short Sale Addendum to the Exclusive Right to Sell Listing Agreement.
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Click Here To Receive Updates by E-mail
Disclaimer
K1351_EDUCATION2.pdf
The most anticipated of the three is the new SHORT SALE CONTINGENCY ADDENDUM
TO REGIONAL SALES CONTRACT.
Form K1351 attempts to define what is meant by the term Short Sale as used in the addendum, has the parties acknowledge that approval is required, and what that approval must contain (i.e. that the lender will accept the seller's net proceeds as full payment and will release liens associated with the loan). The Seller also agrees to cooperated with all of the interested parties in obtaining the lender approval and consent.
The form also give the Seller a deadline to obtain the necessary approvals, after which: "Purchaser may deliver notice to Seller of Purchaser’s intent to void the Contract. Seller shall have three (3) business days from receipt such Notice to deliver written evidence of creditor(s)’ approval to the Purchaser, or this Contract will be void."
The Seller also has the right to void the contract upon receipt of a written rejection of the proposed short sale.
Because the short sale approval often takes a long time, and Purchaser's may not wish to spend money on inspections and appraisals without some certainty that the transaction will eventually close, the form allows the parties to choose whether these contingency deadlines should run from the date of short sale approval or from the date of ratification (as is normally the case).
Please look at the form and LEAVE COMMENTS HERE by clicking on teh comment link below the post. You may also wish to subscribe to have the blog e-mailed to you, so you won't miss my posts on the new Appraisal Contigency Removal Form or the new Short Sale Addendum to the Exclusive Right to Sell Listing Agreement.
---------------------------------------------------
Click Here To Receive Updates by E-mail
Disclaimer
K1351_EDUCATION2.pdf
Labels: addendum, marcus simon, nvar, regional sales contract, short sale
posted by Marcus Simon at
4:27 PM
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1 Comments:
Lenders can change conditions on short sales is one of the first reasons why you should not buy short sale. The lender will make sure that they will reserve the right to have the ability to change the terms of the short sale at the last minute. They can make changes to the terms if the market has any sort of fluctuations. Also, lenders will always have lawyers at the ready and most buyers and sellers do not.
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