Inconsistent only as much as it’s my intent to wash my hands of short sales in the Phoenix real estate market, there’s a partial solution handy for clients who insist that this is their plan.
The Arizona Association of REALTORS this past summer wrote a Short Sale Addendum (actually two – one for the seller when taking the listing, one for the buyer when making the offer.) After another reading, it seems some of the language is worth pulling out of the buyers’ Short Sale Addendum and turning into a separate agreement to be signed before the search begins.
Here’s what I’m thinking, based heavily on the addendum with a couple of tweaks to make it more relevant to a buyer starting the process:
“Client is aware than in a short sale, there is more debt owing against the premesis than the value of the home.
Any offer written with a purchase price less than the amount owed is contingent upon an agreement between the Seller and the Seller’s creditor(s), acceptable for both, to sell the premises for less than the loan amount(s).
In signing this form, the buyer acknowledges their understanding that it may take weeks or months to obtain approval from the seller’s creditor(s) for a short sale.”
The above may not eliminate all of the “when are we going to hear something” questions but it’s a start.
[tags]Phoenix real estate, short sales, real estate negotiations[/tags]