What is a short sale addendum?
A short sale addendum is a critical document in many short sale transactions because it provides the details regarding any of the following: • Contingencies upon which a contract can be canceled or executed. • Bank’s approval of the short sale. • Specific time period the buyer is willing to wait for short sale approval. • Release of the buyer’s earnest money deposit. • Property inspections. • Costs that the buyer and seller may be responsible for as a result of executing the short sale contract. • Consideration of multiple offers on the property. It is important to work with a real estate professional with experience in short sale transactions to ensure the short sale addendum includes the items that will protect the buyer’s interests during the short sale review and execution process.
