I am just trying to get a feel for exactly how you all word the contingency clause in your purchase contracts that require the SS.
I am guessing it would be a contingency for the seller and go something like…
“This contract is valid pending the acceptance in writing of a mortgage payoff and satisfaction that is less than the actual amount owed by the seller. The mortgagor must also agree in writing not to seek any deficiency judgements of any sort against the seller.”
Am I missing anything? Can I see some of the examples that some of the SS veterans out there have used. This would be added in the purchase contract between me and the seller under any contingencies the seller has correct?
That’s not bad…I usually don’t put anything on there about the lender not seeking a deficiency judgment…I just ask them not to once I get my ss accepted.
I use the wording ‘subject to the lender accepting AMOUNT to pay of the existing loan’.
On the purchase and sale agreement I use for the seller I put ‘See addendum’ which refers to an agreement they sign saying I’m buying the house subject to the lender accepting a discount and there is no guarantee of a SS and I cannot promise they will not get a deficiency judgement.
I have them sign 2 of them and only let the lender see the first one.
But can’t you specifically make that a contingency?
I’ve put something real simple that says the contract is contingent on the mortgage holder approving the short sale.
If the mortgage holder approves my price on the purchase contract, then we’re ready to go. If they don’t approve it b/c of the price, then my contract is null & void.
Of course, please consult a legal professional for any contract questions.
you dont need that in your contract. In your disclsoure letter to the homeowner, you indicate that you are not bringing it current, have no interst in making any payments. That you will do your best to help them out. THey understand that it may go into foreclsoure if we are not able to help them. I sent you the FARBAR ASIS contract. There are no contingies and in your letter to the lender you can ask for them to consider the mortgage paid in full. But you need to get that in writing in the acceptance letter.