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What should the listing agreement for a short sale do?

The listing agreement should state that the sellers acceptance of any offer will be subject to the lenders approval of the offer without requiring that the seller bring cash to close escrow, and an agreement by the listing broker to accept the commission as approved by the lender.

Is there a short sale addendum?

A short sale addendum is added to a purchase agreement when a propertys selling price wont pay off the sellers outstanding mortgage balance. The form creates a special condition that requires the sellers mortgage lender to approve the transaction before the sale can be completed.

Can you back out of a short sale offer?

After Short Sale Approval Buyers may back out based on due diligence, appraisal, or financing at this point, just like any other contract. If its within the guidelines of the contract, theyre free to do so.

What is the addendum to a short sale?

A short sale purchase addendum is a document that goes alongside a sales contract. Its an additional document to consider when writing your own real estate contract. The document is added once a sale has been approved and used at the transaction stage.

Can you ask for closing costs on a short sale?

An experienced short sale specialist should be able to negotiate with your lender to get them to accept and approve all reasonable closing costs. In the unlikely event that the bank does not approve some of the closing costs, the buyer or perhaps the seller may have to contribute some money to pay these costs.