This is a disclosure I have all my buyers of short sales sign.

Short Sale Disclosure

Property Address:        

In a short sale the seller’s lender agrees to accept less than what is owed on the loan for a property. As such, it requires the lender’s approval.

Please note that the property will continue to be on the market until the lender accepts an offer.

The following is a partial list of potential situations that could affect a short sale:

1.    After the lender receives the short sale packet, the lender will require at least 30 days to approve the short sale. After approval, the sale must close within 30 days.

2.    The seller will receive no cash from this transaction.  Any funds usually due to the seller will be paid to the lender.

3.    The seller has no additional cash and will be unable to pay for any closing costs, such as the buyer’s appraisal or a home warranty.

4.    The seller is unable to pay for maintaining the property. If the buyer would like to turn on the utilities for any inspections, the buyer must pay for those utility costs.

5.    The seller’s agent will split the commission 50/50 with the buyer’s agent. Please note that since the lender is taking less than what is owed to them in a short sale, the lender may negotiate a lower commission percentage.

6.    The forgiven debt may be taxable income. The seller should discuss this matter with a tax accountant.

By signing this disclosure, you acknowledge that you have read and understand these situations. Any changes to the total commission rate will be announced at the time of the lender’s final approval of this short sale.

Seller’s Signature              Date

Seller’s Agent’s Signature   Date

Buyer’s Signature              Date

Buyer’s Agent’s Signature   Date

I attach this to all my listings on the MLS so that no one is confused of the process. 

ChristinGriffin@hotmail.com