Short sale addendum 2026

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The document is a Short Sale Addendum to a Contract for the Purchase and Sale of Real Estate, outlining the terms and conditions under which a property sale can occur when the sale price is less than the amount owed to third parties. It details the need for third-party approval, the lack of a binding contract until such approval is obtained, and the rights of both buyer and seller regarding additional offers and cancellation of the proposed sale. Key provisions include timelines for submission and response, as well as conditions under which the agreement may be modified or canceled.

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Click ‘Get Form’ to open the Short Sale Addendum in the editor.
Begin by entering the date of the original Contract for the Purchase and Sale of Real Estate at the top of the form. This establishes the context for your addendum.
Fill in the names of both Buyer and Seller, ensuring accuracy as these parties are crucial to the agreement.
Provide the complete address of the Property involved in this transaction, including street, city, county, state, and zip code.
In Section 1, acknowledge that the Purchase Price is less than what is owed to Third Parties. List any relevant entities that may have an interest in the Property.
For Section 2, ensure you understand that Third Party approval is necessary. Note any deadlines for submission of documents required for their review.
Complete Sections 3 through 8 by carefully reading each condition regarding binding contracts and rights to cancel or accept offers. Make sure all parties are aware of their rights and obligations.
Finally, have both Buyer and Seller sign and date at the bottom of the form to finalize your addendum.

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Got questions?

We have answers to the most popular questions from our customers. If you can't find an answer to your question, please contact us.

What is a sale addendum?

An addendum is an additional document that is attached to your purchase contract. It plays an important role in clarifying and/or modifying an agreements initial terms and conditions.

Is 20% below the asking price too low?

A lowball offer is considered a bid that comes in docHubly below the asking price, typically 20% to 25% less than or more than the asking price. There is no hard rule, but if it makes a seller say, Really? then you have most likely entered lowball territory. It isnt always a bad move.

Can you offer less money on a short sale?

I can tell you, that most banks will sell for less than fair market value. How much is dependent on the price range the property is in, who the banks is and what other items need to be paid for that is not considered typical in a short sale. Most banks will give up 15-20% off fair market value.

What are the rules of a short sale?

When does a home go into short sale? The home has to be worth less than the homeowners payoff amount. The lender will want to get a property evaluation by reviewing recent sales of comparable properties to determine a market-supported sales price. The homeowner must be able to prove financial hardship.

How much lower is the price in a short sale?

A lowball offer is typically considered at least 20% below the asking price. If youre offering 10% below, the property should be in good condition but may need some cosmetic work.

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Is a short sale good or bad for buyers?

While short sales require a lengthy lender approval process, they may be worth the wait for homebuyers and investors looking for a good deal on a property. With the seller and lender both motivated to mitigate their losses by selling the property, buyers may be able to negotiate a below-market purchase price.

How much less can you offer on a short sale?

Its best to strike a balance between whats a good deal for you and whats reasonable for the lender. A price thats 5% to 10% below market value is typically a good number to put on the table. Venturing further down could be dangerous territory.

Short sale addendum 2026

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