REAL ESTATE PURCHASE AND SALE AGREEMENT
(SHORT SALE)
THIS REAL ESTATE PURCHASE AND SALE AGREEMENT (hereinafter referred to as the “Agreement”) is hereby entered into by and between ________________________________________ (“Seller”) and Small Family Homes, LLC, an Arizona limited liability company (“Buyer”) as of the ________ day of _____________________, 2008. Seller and Buyer are referred to throughout this Agreement collectively as the “Parties”.
Recitals
A. Whereas, Seller owns all right, title and interest in the real property and improvements made thereto located at ________________________________________________________________ (“Property”);
B. Whereas, Seller currently resides in and occupies the Property as its primary residence;
C. Whereas, Seller, due to events outside of its control, has fallen behind on its mortgage payments and may be or is in the process of losing the Property to its lender through foreclosure or a trustee sale;
D. Whereas, Buyer is in the business of acquiring residential real estate;
E. Whereas, Buyer desires to purchase the Property from Seller for _________________________________ dollars ($_______________) (“Purchase Price”), through, what is commonly referred to as a “short sale”.
F. Whereas, Buyer intends to sell the Property to a third party upon execution and performance of this Agreement; and
G. Whereas, Seller and Buyer desire to enter into this Agreement to effectuate the sale of the Property.
Agreement
IN CONSIDERATION, of the mutual promises set forth herein and for other good and valuable consideration hereby acknowledged by the Parties, Seller and Buyer agree as follows:
1. Short Sale: Seller acknowledges and understands that this Agreement is for the short sale of the Property and that Seller will likely not receive any money or proceeds from the sale of the Property. Seller has read, acknowledges receipt of and understands the Short Sale Transaction Disclosure attached hereto as Exhibit A and incorporated herein by reference. Seller is advised to consult with independent legal counsel and an accountant prior to executing this Agreement.
By initialing below, Seller acknowledges a complete understanding and approval of the foregoing Paragraph 1.
Seller’s Initials ________ / _______
2. Short Sale Condition Precedent: Buyer acknowledges that Seller owes more for the Property than the Purchase Price and the Property is encumbered by loans, mortgages, or deeds of trust that exceed the Purchase Price. Prior to Close of Escrow, and as a condition precedent thereof, Seller and Seller’s lender(s) shall agree to sell the Property for less than the total loan amount(s), including, without limitation, Seller’s lenders right to collect the loan amount from Buyer, including any and all unpaid principal, interest, fees or costs. Seller and Seller’s lender shall also cause the promissory note, mortgage, or deed of trust to be released from the Property on or before the Close of Escrow. In the event Seller and Seller’s lender are unable to reach a mutually acceptable agreement concerning
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