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A short sale is a transaction in which the lender, or lenders, agree to accept less than the mortgage amount owed by the current homeowner. In some cases, the difference is forgiven by the lender, and in others the homeowner must make arrangements with the lender to settle the remainder of the debt.
The buyer must deliver the option fee to the title company within three days after the effective date of the contract.
In a short sale, the buyer is purchasing a home from the original owner, who will then repay their mortgage lender. The lender accepts that it wont recover the full amount of its debt.
A short sale in real estate is an offer of a property at an asking price that is less than the amount due on the current owners mortgage. A short sale is usually a sign of a financially distressed homeowner who needs to sell the property before the lender seizes it in foreclosure.
Short Sale Addendum to Agreement of Sale (Form SHS) conveys any changes in terms or conditions that will apply to the Agreement of Sale in light of the transaction being a short sale.
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If youre experiencing financial difficulties, a short sale might be an appealing option. But when going through this process, you must have all the correct documentation. In other words, you need a short sale addendum. A short sale addendum ensures that all short sale details are included within the sales agreement.

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