Does anyone have a good sample of a short sale purchase agreement. I am getting ready to send in my very first short sale packet. I have found several on the internet but none that i really like.
THanks in advance
Different states require slightly different language. Just go to your local board of realtors and buy a form, or ask for one from a friendly realtor. Or, you can always hire an attorney.
Sample Purchase Agreement
Whereas _____________________ (hereinafter the “Buyer”) intends to negotiate with _____________ (the “Lender”) to reach terms which will allow the Buyer to purchase the property as well as release _______________ (the “Seller”) from current financial liabilities and legal responsibilities to the Lender associated with the property located at ____________________ and described in detail in Appendix A (the “Property”),
This Agreement sets forth the disclosures, terms, and conditions, under which the Buyer and Seller agree to the conveyance of the Property.
Seller’s Rights and Responsibilities
- Seller has the legal right and capacity to enter into this Agreement and convey the Property.
- Seller has disclosed all liens associated with the Property to Buyer as detailed in Appendix B.
- Seller may rescind this Agreement if the Buyer enters into an agreement with the Lender that does not agree to forgive any and all of the remaining amounts due under the terms of the Seller’s original mortgage.
- Seller may rescind this Agreement if the pre-foreclosure settlement is not reflected on the seller’s credit report (paid in full, settled, etc), instead of reflecting a foreclosure, deed-in-lieu of foreclosure, etc.
- Seller may rescind this Agreement if the Buyer has not entered into an agreement with the Lender within 120 days.
- Seller further agrees to keep subject property free of further encumbrances, liens, or debts.
- Seller will Allow the Buyer access to the Property for purposes of inspection, repair, and/or third party review.
- Seller agrees to deliver the Property in its present condition, without any modifications to the property before or after purchase, unless otherwise specified in Appendix C.
- Seller agrees not to circumvent the Buyer by entering into any other agreement to sell or in any other manner convey the Property.
- Seller agrees to hold Buyer harmless from any and all damages, direct or indirect, that may result if Buyer does not reach acceptable terms with the Lender.
- Seller acknowledges that signing this Agreement does not guarantee that the lender will stop pending or prospective foreclosure or other legal proceedings or remedies.
Buyer’s Rights and Responsibilities - Buyer agrees to negotiate with the Lender in good faith to achieve the desired outcome of this Agreement.
- Buyer may rescind this Agreement if Buyer does not reach terms with the Lender which the Buyer finds acceptable.
- Buyer’s may rescind this Agreement based on deficient conditions reported upon Inspection of the Property.
The terms and conditions of this agreement shall prevail in the event of a conflict with the terms and conditions of any previous agreements.
Signatures:
_________________________________ _______________________________ Seller Seller
_________________________________ _______________________________ Buyer Buyer
STATE OF: __________________________
COUNTY OF: ____________________________
Acknowledged before me on this _________ day of _______________, 200 ___
WITNESS my hand and official seal.
Notary Public
(Seal)
ID Produced______________________
Appendix A Legal Description of Property __________________________________
Appendix B Liens and Other Encumbrances ________________________________
Appendix C Modification / Repairs to Property _______________________________
Sample Warranty Deed
For good consideration, I / We (“Grantor”) _________________________, County of __________________________, State of ______________________, hereby deed and convey to (Grantee) ______________________ of ______________________, County of ________________________, State of __________________, the following Property, known commonly as ___________________________________, County of ___________________, State of ________________, (“the Property”).
Grantor, for itself, hereby covenants with Grantee, that Grantor is lawfully seized in fee simple of the above-described Property; that it has a good right to convey; that Grantor, and all persons acquiring any interest in the Property granted, through, or for Grantor, will, on demand of Grantee, execute an instrument necessary for the further assurance of the title to the Property that may be reasonably required; and that Grantor will forever warrant and defend all of the Property against every person lawfully claiming the same or any part thereof.
_______________________________, dated _______________, 20.
WITNESS the hands of said Grantors this ______ day of _____, 20.
Grantor Grantor
Grantee Grantee
STATE OF _____________________
COUNTY OF _____________________
Acknowledged before me on this _______ day of _______________, 200
WITNESS my hand and official seal.
Notary Public
(Seal)
ID Produced______________________
Sample Shortsale Disclosure Form
This document serves as an explanation and disclosure regarding your property.
The purchase of your property may be possible if we are able to negotiate with your lender(s) to have them take less than what was owed as a payoff.
In general, some cases but not all, the lender(s) with whom we negotiate will require you as the original mortgagor to pay the difference of what is the remaining balance owed as a deficiency judgment, however our short sale offer will include the following in the Purchase Agreement:
I. Lender agrees to forgive any and all of the remaining amounts due under the terms of the original mortgage.
II. The pre-foreclosure settlement or closing should be reflected on the seller’s credit report (paid in full, settled, etc); instead of showing a foreclosure, deed-in-lieu of foreclosure, etc.
III. The lender agrees to prepare and release its mortgage.
IV. The lender agrees that the seller will not have any further liability.
We also demand the commitment be approved by the lender in writing.
We are disclosing the following:
This document in no way suggests or states that we promise to complete this transaction or close on your property before the sheriff’s or trustee’s sale.
If negotiations are unsuccessful and we cannot close and consequently the property goes to sale, the sellers agree to hold harmless Company Name, LLC and/or any assigns (buyer).
If the lender refuses to honor the approved discount(s) and closing the purchase is not possible, the property could go to foreclosure. If this occurs, the seller agrees to hold harmless the buyer, trustee or agents and/or any assigns.
In the event the short sale is successful and there is no deficiency judgment, the discount received may become a taxable event to you. This may or may not be disclosed or followed through by your lender.
Company Name, LLC by no means is acting as a “Foreclosure Consultant” and has not promised to guarantee payments, guarantee to bring the loan current, guarantee that the property will be paid off or kept out of foreclosure.
It is being disclosed that without the buyers’ intervention, the seller acknowledges the property would be lost at the foreclosure sale. Never has the buyer made any promises or guarantees.
The buyer, assigns or third party has the ability to re-sell said property either through a contractual interest or as principal owner and holder of the deed and is not acting as Real Estate Broker unless disclosed as such in that capacity.
It is not buyer’s intention to defraud, misrepresent, cheat or steal; but provide, a more positive result or conclusion than a foreclosure sale of seller’s property.
The seller understands that Company Name, LLC is neither a law firm nor an attorney and does not give legal advice. If this disclosure is not understood, you are encouraged to seek competent legal advice and also to become familiar with the foreclosure laws in your state if they choose.
THE UNDERSIGNED HAS READ, UNDERSTANDS AND AGREES TO THE FOREGOING DISCLOSURE:
Signed, sealed and delivered this ____ day of ___________, 20.¬
______________________________ _________________________________ Witness Seller
______________________________ _________________________________ Witness Seller
______________________________ _________________________________ Witness Seller
STATE OF _____________________
COUNTY OF _____________________
Acknowledged before me on this _______ day of _______________, 200
WITNESS my hand and official seal.
Notary Public
(Seal)
ID Produced______________________
WOW Thanks so much, this is a huge help