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Short sale addendum to purchase contract (rssap)

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  • 1. PRDS “SHORT SALE” ADDENDUM TO PURCHASE CONTRACT EQUAL HOUSING OPPORTUNITYwww.prdsforms.comThis Short Sale Addendum (“Addendum”) is intended to modify that certain Real Estate Purchase Contract(“Contract”), dated ________________, between ___________________________________ (“Seller”) 1/1/2013 Seller 1 Seller 2and __________________________________________ (“Buyer”) relating to the real property located at Buyer 1 Buyer 2 ________________________________________________________________________ (“Property”). ### Property Address, City, CA Zip Code1. “Short Sale” Designation. A “Short Sale” refers to a transaction in which the amount of loans and other monetary obligations encumbering a property, combined with brokerage commissions and other expected costs of and relating to sale, exceed its current fair market value. Buyer and Seller have been apprised that the listed Property may be subject to a Short Sale and that, in order to close escrow and deliver title, Seller may be required to: a. Deposit additional funds (beyond anticipated proceeds of sale) with the Escrow Holder; or b. Secure from Seller’s lenders a reduction of the amount demanded for pay-off of loans secured by the Property.2. “Short Sale” Contingency; Adjustment of Contract Time Periods. This Contract is contingent on Seller’s obtaining from Seller’s lenders and/or other lien holders written commitments to reduce their respective pay-off demands to an extent and in an amount sufficient to assure that sale proceeds will adequately satisfy loan payoff demands, liens, property taxes, escrow fees, brokerage fees, escrow fees and such other fees and charges provided for under the Contract or otherwise imposed by statute. Seller shall have until ____________ (date) (or __________) days from Acceptance within which to remove this contingency. If by such time Seller shall not have removed this contingency in writing, either Buyer or Seller shall be entitled to cancel this Contract and Buyer shall thereupon be entitled to the return of Buyer’s deposit. Unless otherwise agreed in writing, time periods applicable to Buyer’s performance (e.g., including any Buyer’s deposits, inspections, removal of Buyer contingencies, etc.) shall commence upon delivery by Seller of a written removal of this Short Sale contingency.3. Uncertainty of Lender/Lien holder Accommodations. Seller understands that, even in anticipation of a Short Sale situation, lenders and other lien holders are under no legal obligation to reduce their pay-off demands. Additionally, the lenders and lien holders involved may impose charges or restrictions that render a hoped-for Short Sale solution impossible, impracticable or unworkable. Consequently, it is possible that Seller (or, as the case may be, the Listing Agent) may not be successful in obtaining pay-off reductions in an amount sufficient to achieve sale and transfer of the title of the Property.4. Tax, Credit and Other Consequences; Financial and Legal Advice. There may be significant tax and other financial consequences to borrowers where the lender has agreed to reduce its pay-off demand in favor of the borrower. Moreover, a borrower’s credit rating may be negatively affected by a Short Sale. It is recommended that, prior to entering into a Short Sale, Seller confer with financial, tax and legal advisors regarding Short Sale and its alternatives, including but not limited to, refinancing, renegotiation of loan terms, bankruptcy, forbearance, foreclosure or deed in lieu of foreclosure.DATE: _________________________________________ DATE: _____________________________________SELLER: _______________________________________ BUYER: ___________________________________ Seller 1 Buyer 1SELLER: _______________________________________ BUYER: ___________________________________ Seller 2 Buyer 2Copyright© 2008 Advanced Real Estate Solutions, Inc. Form RSSAP Revised 7/08