Can you please explain Memorandum of Option and it’s importance to a successful short sale. I have a national short sale course and they never mention this in it. Thanks
I don’t have the answer for you but I think I can help you out in a way…do a google search for that name or legal library, it should give you something.Hope this helps you out
Howdy Proverb1320:
A Memorandum of option is a recorded notice that lets the public know there is an option on the property. As an example of how it is used may be in a lease option where the buyer wants to make sure that the seller does not try to wiggle out of the deal or sell it to some one else or change the deal or refinance. It could be used in a short sale perhaps to keep the seller from selling to another buyer. In this case it would be more like a memorandum of contract. Both are just short versions of the agreements. You could record the entire document but this would costs less to record and would keep the details of the transaction private.