OUR PROMISE TO YOU & YOUR BUYER: The Short Sale Cooperative is absolutely committed to the protection of qualified buyers who make offers & act in good faith. We PROMISE to do everything possible to protect YOUR client, as well as ours, from any and all problems that you may expect, when making an offer on a short sale listing. Our process is may be a little different from any other short sale that you have seen before, but everything we do is solely designed to promote the CLOSING of THIS transaction. Please read the below, follow the instructions carefully and we ll all be at the closing table a lot faster than you might think. Please, give us a call if you have any questions. GENERAL REQUIREMENTS & IMPORTANT INFORMATION: CONTRACTS MUST BE VERY LEGIBLE o Use email, avoid fax if possible o Do not fill out by hand NO ELECTRONIC SIGNATURES ALLOWED o Buyer must hand-sign/initial DUE DILIGENCE PERIOD IS 10 DAYS & BEGINS WHEN YOU RECEIVE SIGNED CONTRACTS o All inspections (except Appraisal) must be complete during due diligence o Advance inspections save everyone time and OFTEN save the buyer thousands by documenting repair concerns before approval REQUIRED 90 DAY NEGOTIATION PERIOD o Everyone must wait at least 90 days for Approval, no early terminations o We usually approve faster but this allows a fair amount of time ONE-PERCENT (1.00%) EARNEST MONEY REQUIRED o This is due THREE (3) banking days from the date you receive signed contracts o It must be held by the buyer agent s firm or the closing Attorney o Minimum $1,000 required for all purchases Exceptions are possible for low down payment financing IF YOU HAVE QUESTIONS, PLEASE CALL US AT (800) 704-6411 PLEASE DO NOT SUBMIT YOUR OFFER TO THE MLS LISTING AGENT ALL OFFERS GO TO: OFFERS@SHORTSALEFORCE.COM
Signed Real Estate Purchase Agreement o Earnest money must be 1.00% of sales price (minimum $1,000) Must be deposited within 3 banking days of Execution, not after bank approval o Escrow Agent must be the buyer agent s firm, closing attorney or title firm o Personal Property must state All on premises at closing o Closing Cost concessions cannot be more than 3.00% of purchase price. No closing costs concessions allowed for cash offers. o No Home Warranty may be provided by Seller o Other Addenda section (if applicable) must reference the Supplemental Short Sale Addendum o No Blank Spaces, everything should be filled out or be marked with N/A Signed State (NORMAL) Short Sale Addendum (If applicable) Signed SUPPLEMENTAL Short Sale Addendum (Begins next page, read this in detail, please) Pre-qualification letter and/or Proof of Funds letter o If buyer is obtaining financing but paying more than 20% cash at closing, the bank will require a pre-qualification letter and a proof of funds to show the down payment amount. Copy of Earnest Money Deposit check required with offer o 1.00% of Purchase Price, (minimum $1,000) o Must be received by Escrow/Trust Fund Agent within 3 banking days of execution Residential Property Disclosures, if required by your state or the purchase agreement If the Buyer is a non-human entity of any kind. The bank will require a copy of the Corporate Documents for that Entity which must include a complete list of members, partners, officers and/or beneficiaries. The person signing your contract must be named in those documents and must have the authority to engage in contractual agreements on its behalf. If the buying entity is owned by other entities, we must have docs for those entities as well. This must continue until we have all docs for all associated entities until we reach the parent or master entity which is owned by human beings, not other entities. IF YOU HAVE QUESTIONS, PLEASE CALL US AT (800) 704-6411 PLEASE DO NOT SUBMIT YOUR OFFER TO THE MLS LISTING AGENT ALL OFFERS GO TO: OFFERS@SHORTSALEFORCE.COM
SUPPLEMENTAL SHORT SALE ADDENDUM The provisions set forth by this Supplemental Short Sale Addendum ( Addendum ) are hereby made a part of the Real Estate Purchase Contract and all other addenda or amendments agreed upon by the Seller and Buyer in connection with the purchase of the Property (collectively, the Agreement ). This Addendum shall not replace state-specific short sale addenda, both should be used; however, in the event of a conflict between this Addendum and any other part of the Agreement, the Addendum shall control unless prohibited by law. 1. TERMS AND DEFINITIONS. The terms listed below shall have the respective meaning given to them as set forth adjacent to each term. a) SELLER: b) BUYER: c) PROPERTY: d) LENDER: Any person or entity to which a debt is owed and who has secured that debt by any legal method which would prevent Seller from conveying property title to Buyer in accordance with the terms of the Agreement. e) SHORT SALE: Any sale of real property where: I. The purchase price is not or may not be sufficient to pay the costs of sale, which include but are not limited to the seller s closing costs and payment in full to all applicable Lenders, and; II. The Seller does not or may not have sufficient liquid assets to pay the costs of sale, and; III. All Lenders agree in writing to release or discharge their liens, judgments or other security instruments upon payment of less than the amount owed in full, with or without the Seller being released from further liability. f) EXECUTION: The date that the last one of Buyer and Seller has signed or initialed this Addendum and such signing or initialing has been communicated to the opposite party. g) APPROVAL NOTIFICATION. The date which Seller, Seller s Agent or other representative of Seller, delivers written or electronic documentation to Buyer or Buyer s Agent, which stipulates that Seller s Lenders have agreed to release their security instruments from the property and such release shall allow Seller to convey property title to Buyer in accordance with the terms of the Agreement. h) APPROVAL EXPIRATION. Following Approval Notification, this shall be the earliest date mandated by any Lender as the date in which their agreement to release their security instrument from the property expires & can no longer be used to allow Seller to convey property title to Buyer in accordance with the terms of the Agreement. 2. SHORT SALE CONTINGENCY. Purchaser and Seller acknowledge that the Agreement and any subsequent amendments are contingent upon Seller obtaining the written approval of sale from all Lenders, which is acceptable to seller, within the Negotiation Period or any extension thereof as described in Paragraph 5 below. Seller s signing of all Lender s written approval letters shall constitute acceptability to Seller and shall serve as a waiver of this provision, provided that Lender does not change the terms of that letter or rescind it, prior to closing. 3. DELIVERY OF FEES. Within three (3) banking days of Execution, TIME BEING OF THE ESSENCE, Buyer shall deliver all fees in connection with this agreement. Should Buyer fail to deliver Earnest Money Deposit or any other agreed upon fee by this date, or should any check or other funds paid by Buyer be dishonored, for any reason, by the institution upon which the payment is drawn, Buyer shall have one (1) banking day after written notice to deliver cash or immediately available funds to the payee. In the event Buyer does not timely deliver cash or immediately available funds, Buyer shall be in breach of contract and Seller shall have the right to terminate this Contract upon written notice to Buyer. 4. DUE DILIGENCE PERIOD. Beginning at Execution and continuing until 5 pm on the 10 th calendar day following execution, TIME BEING OF THE ESSENCE, or any agreed upon extension, buyer shall have the right to terminate the Agreement for any reason or no reason, by delivering to Seller a notice of termination ( Termination Notice ) signed by Buyer. If Buyer timely delivers the signed Termination Notice, this contract shall be terminated, at which point, all Earnest Monies shall be refunded to the Buyer. Page 1 of 3 Buyer Initials Buyer Initials Seller Initials Seller Initials
5. NEGOTIATION PERIOD. Beginning at Execution and continuing until 5 pm on the 90 th calendar day following execution, TIME BEING OF THE ESSENCE, or any agreed upon extension ( Negotiation Period ), Seller shall be given the opportunity to procure lender approval of the Agreement and provide Approval Notification to the Buyer or Buyer s Agent. If Seller fails to provide Approval Notification by the expiration of the Negotiation Period, Buyer or Seller may elect to Terminate this Agreement, at which point, all Earnest Monies shall be refunded to the Buyer. 6. APPRAISAL PERIOD. Beginning at Approval Notification and continuing until 5 pm on the 10 th calendar day following Approval Notification, TIME BEING OF THE ESSENCE, or any agreed upon extension ( Appraisal Period ), Buyer shall have the right to obtain a Certified Appraisal of the Property s value, from a State Licensed Appraiser or Appraisal service ( Appraisal ). If the property value indicated in the Appraisal is lower than the purchase price indicated in the attached Agreement, AND if Buyer or Buyer s Agent communicates a copy of the Appraisal to Seller or Seller s Agent, prior to the expiration of the Appraisal Period, Buyer may elect to Terminate this Agreement, at which point, all Earnest Monies shall be refunded to the Buyer. 7. EARNEST MONEY. The initial Earnest Money deposit and any additional earnest monies paid in connection with this transaction (collectively Earnest Money ), shall be deposited and held in escrow by until Closing, at which time it will be credited to Buyer, or until this Agreement is otherwise terminated. UPON TERMINATION, REFUND OF EARNEST MONEY TO BUYER SHALL BE ALLOWED ONLY UNDER THE FOLLOWING CIRCUMSTANCES: a) Buyer Terminates during the Due Diligence Period b) Buyer Terminates AFTER the expiration of the Negotiation Period, BEFORE Approval Notification c) Buyer Terminates during the Appraisal Period, as described in Paragraph 6 d) Buyer Terminates due to Seller s BREACH of the agreement e) Seller Terminates for any reason OTHER than Buyer s BREACH of the agreement f) Buyer Terminates because Property is materially damaged after the expiration of the Due Diligence Period, prior to Closing and such damage may be reasonably proven to have occurred during that time If Buyer Terminates the agreement for any reason not described in 7(a), 7(b), 7(c), 7(d), 7(e) or 7(f), above, or if Buyer s failure to close the transaction by the Settlement Date results in termination of any Lender(s) written approval of short sale, Earnest Money shall be paid to Seller upon Seller s request as liquidated damages and as Seller s sole and exclusive remedy for such breach, but without limiting Buyer s responsibility for curing property damage (if any) caused by Buyer during the course of Buyer s inspections of the Property. THE PARTIES ACKNOWLEDGE AND AGREE THAT THIS PROVISION SHALL CONTROL AND SUPERSEDE ANY OTHER PROVISIONS, CONTINGENCIES AND/OR RIGHTS TO EARNEST MONEY REFUND WHICH MAY BE ASSOCIATED WITH ANY CURRENT OR PRIOR AGREEMENTS BETWEEN THE PARTIES, UNLESS PROHIBITED BY LAW. 8. AVAILABILITY OF UTILITIES. As it pertains to utilities which are or have been previously available at Property: a. Buyer acknowledges that Seller may not be financially able to maintain availability of utilities through the completion of property inspections and/or until Settlement/Closing. b. If utilities are currently unavailable or disconnected at any time before closing, Buyer agrees to assume all costs associated with the connection of utilities, if required by buyer. c. Buyer is responsible for confirming the availability of utilities 24 hours prior to any property inspection and assumes responsibility for additional costs incurred should utilities not be available at the time of property inspections, due to lack of Buyer s knowledge. Note: Utilities may be connected at the time of showing and then later disconnected without warning. Double check before you inspect. 9. REPAIRS. Seller and Buyer understand agree that property will be sold in its existing condition and that seller will not make any repairs whatsoever. This provision does not affect buyer s right to terminate during the Due Diligence period. 10. HOME WARRANTY. In connection with this Agreement, any attached agreements and all subsequent agreements, Seller shall not be responsible for providing a home warranty to the buyer. Page 2 of 3 Buyer Initials Buyer Initials Seller Initials Seller Initials
11. PERSONAL PROPERTY. This Agreement shall not be contingent upon the transfer of any personal property from one Party to the other. Should this provision conflict with any other provision in the Agreement, this provision shall control. 12. SETTLEMENT AGENT. To ensure the most successful short sale closing possible, Buyer agrees to allow Seller and/or Seller s representatives to select the Settlement Agent of record who shall conduct the closing and prepare the HUD-1 Settlement Statement in connection with the terms mandated by Seller s Lender s Written Approval Letter(s). This provision shall not prevent Buyer from choosing Buyer s provider of Title Insurance. 13. SETTLEMENT STATEMENT DISCLOSURE. Buyer agrees to provide a complete and final copy of Buyer s Closing Disclosure/Settlement Statement to Seller and/or Seller s lienholder(s) within 72 hours of settlement date. 14. SETTLEMENT DATE. The closing/settlement shall take place at or before 5 pm, at least 3 calendar days BEFORE Approval Expiration or the 30 th calendar day following conveyance of Approval Notification, whichever is EARLIEST and TIME BEING OF THE ESSENCE with regard to said dates ( Settlement Date ). Buyer acknowledges that extensions of Approval Expiration are INCREDIBLY COMPLICATED to procure and NEVER GUARANTEED. Approval Expiration extensions may require several weeks to obtain and, in rare cases, may lead to an INCREASE IN THE PURCHASE PRICE of the home. If, due to no fault of the Seller or Seller s Lender, closing does not occur by the agreed Settlement Date and if more than 30 calendar days have passed since Approval Notification, Buyer agrees to pay a per diem to Seller which is equal to the additional cost of property taxes and community association fees incurred between the agreed upon Settlement Date and the actual date of closing, as required, due to the closing delay. Note: Payment shall only be required if the delay results in insufficient funds paid towards seller s lender s net proceeds, as indicated on approval letter(s). 15. SETTLEMENT COSTS. Seller accepts responsibility for costs associated with pro-rated property taxes, transfer taxes/deed stamps, prorated HOA dues, and the preparation of the Deed, Lien Waiver and other documents which convey property title to Buyer in accordance with the terms of the Agreement and/or as required by Law. Buyer accepts responsibility for all other closing costs and transfer fees due at closing, including but not limited to costs associated with Buyer s title search, Buyer s title insurance, Buyer s financing, Buyer s inspections of the property, HOA transfer costs or Estoppel Letter charges, and all fees payable to the settlement agent of record, as indicated in Section H of the HUD-1 Settlement Statement. Note: Seller and Seller s representatives assert, to the best of their knowledge that no additional or unusual settlement or short sale fees shall be charged to Buyer in connection with the settlement of this transaction. 16. SEVERABILITY. If any provision of this Addendum or the attached Contract is determined to be invalid, illegal or unenforceable, the remaining provisions shall not be affected or impaired thereby, and no provision shall be deemed dependent upon any other provision unless so expressed herein. NO PROFESSIONALLY LICENSED INDIVIDUAL INVOLVED IN THIS TRANSACTION MAKES ANY REPRESENTATION AS TO THE LEGAL VALIDITY OR ADEQUACY OF ANY PROVISION OF THIS FORM OR OF ANY FORM BEING USED. ALL PARTIES ARE ADVISED TO CONSULT A REAL ESTATE ATTORNEY BEFORE EXECUTING THIS OR ANY LEGAL DOCUMENT. Buyer: (SEAL) Seller: (SEAL) Buyer: (SEAL) Seller: (SEAL) Page 3 of 3