Short Sale Contract Instructions
SHORT SALE DISCLOSURE/INSTRUCTIONS!
Thank you very much for showing one of my listings. Please read this important Short Sale Information before writing your contract.
All Terms are subject to Thrid Party Approval including the buyer agent and listing agent commission! If the buyer cannot wait a minimum of 90 days for approval please do not write an offer on this property.
SHORT SALE OFFER ACCEPTANCE
If the terms of the offer are ok (if Sales Price offer is not less than of 5% of the comparables in the neighborhood, and the offer does not have contingencies), the seller will ratify the best of the offers received and send it to the bank for Third Party Approval. If the offer(s) is a low ball offer then the highest of the low ball offers will be sent to the bank for approval and the property remains active.
APPROPIATE LISTING STATUS
After an offer is ratified by Seller -subject to lender approval-, the status of the listing will be changed to “CNTG/KO” within the following 48 hours excluding weekends and holidays.
Click here for contract offer form: http://root.z57.com/filemanager/uploads/9/1/9174f352-d8c7-42c5-684d95b38ece8887.doc
CONTRACT LANGUAGE:
1. AS-IS PROPERTY CONDITION: All Short Sales are sold on AS-IS basis. This type of transaction is like a “foreclosure” (technically, short sale is a pre-foreclosure). Purchaser should be encouraged to obtain independent HOME INSPECTIONS (for informational purposes only), since the Seller will not repair, correct or otherwise fix any household deficiencies or problems, so the Purchasers should make themselves aware of any potential expenses they may have as a result of making a contract offer. Attach “NVAR Contingencies/Clauses Addendum to your Sales Contract”.
2. HOME WARRANTY: In the case of all Short Sales the Seller (lender) will not pay for home warranty. Please DO NOT request for this to be paid by the seller.
3. TERMITE INSPECTION: In case the Short Sale Lender does not pay for the Termite report, the Purchaser will pay for the same.
4. HOA/Condo Fee: Some lenders will pay delinquent condo & HOA fees and some will not please inform your client.
5. HOA/Condo Docs: The buyer is responsible for the cost associated with ordering the HOA/Condo Docs and the buyer’s agent is responsible for ordering the docs.
6. SUBJECT TO THIRD PARTY APPROVAL: All offers are to be written contingent on third party approval, with “lender or other financial institution “named as the party providing approval. The length of this contingency is to be no less than 90 days (see” Short Sale Contingency Addendum to Regional Sales Contract”).
TIME TO CLOSE
Assuming a contract has been ratified by the Bank or Lender, the Buyer will have no more than 25 DAYS FROM THE DATE OF APPROVAL TO CLOSE. THEREFORE, IT IS EXTREMELY IMPORTANT THAT YOU HAVE A BONA FIDE MORTGAGE FINANCING COMMITMENT AND THAT YOUR MORTGAGEE IS READY TO PREPARE ITS DOCUMENTS AND FUND THE LOAN AT THE TIME OF CLOSING. BUYER WILL PROVIDE A NEW APPROVAL LETTER TO THE SELLER AT THIS TIME.
VACANCY OF THE PROPERTY
The owners have the right to continue living in the property, so they will vacant the property one or two days before the settlement day. The owner will not remove anything from the property according to the paragraph No 9 of the Sales Contract. In case of the house is vacant, the owner not allow the water pipes to freeze.
CLOSING COMPANY
Ever though by law the Buyer is entitled to select the settlement company, our Seller and Listing Agent have already started the short sale process sale side of this transaction with “The Settlement Group” for Virginia and "Array Title & Escrow" for DC & Maryland. The Settlement Group & Array Title & Escrow are members of our Short Sale team; they prepare & review preliminary HUD1 for the lenders and do title search in advance and assist in negotiating the acceptance of your clients’ sales contract therefore, it is our suggestion that the Buyer employ and use the services of The Settlement Group or Array Title & Escrow. No Split Settlements!
Thank you for your interest in one of my listings.
Nancy Alert,Realtor, ABR, GRI, CRS, RDCPro™,ePRO
Commercial & Residential Real Estate
REO/Short Sale Specialist
Level 1 NFSTI REO Certification
Nancy Alert & Associates, LLC
RE/MAX Allegiance, The World’s #1 Selling RE/MAX Company
Licensed in VA, DC, MD
NVAR Top Producer, Life Member NVAR Multi-Million $ Producer
Email: Nancy@NancyAlert.com Webpage: www.NancyAlert.com
CELL: 703-861-7355 FAX: 866-763-5325
www.Twitter.com/ShortSaleAndReo
Check out my blog: http://shortsale08.wordpress.com/new-updates/
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