Although I have heard a great deal of complaints about the short sale addendums that are flying around he Commonwealth of MA (and the country)  The contracts must be ammended to reflect the nature of the transaction!

Here is what I suggest:

ADDENDUM TO PURCHASE AND SALE AGREEMENT

BUYER understands and agrees that the sale of the Premises is the subject of a “short sale” meaning that the SELLER has made a request to his lenders, to accept loan payoff amounts for each loan that is less than the amount due under the terms of each lender’s Note. BUYER further understands and agrees That SELLER’s performance under this Purchase and Sale Agreement is conditioned upon:

1. Lender (s) approval of short sale

2. The amount of proceeds due SELLER or the amount of cash due from SELLER shown on the final HUD Settlement Statement at closing shall not exceed zero and 00/100 dollars ($0.00), meaning that SELLER shall neither take proceeds from the sale of The Premises nor he required to bring funds to closing to consummate the sale of the Premises to the BUYER.

3. All real estate taxes, condominium fees, utilities or other expenses related to the maintenance of the premises, adjustments or sellers closing costs shall be paid first at the time of closing with any deficit to be taken from the lender(s) or other creditor (s) fees as the lender(s) or creditor(s) may agree. Seller will not be responsible for any post closing adjustments.

4. BUYER understands and agrees that SELLER may continue to accept so-called “back up” offers until SELLER receives written confirmation of BUYER’s unconditional purchase money mortgage loan approval.

5. BUYER understands and agrees that if SELLER is informed that one or both of his mortgagees do not approve a “short sale” of the Premises, this Purchase and Sale Agreement shall be null and void, SELLER shall not be obligated to perform, and BUYER’s deposit shall be promptly returned to him in full.

6. The BUYER understands that there are no funds available to pay for termite repair or treatment should such repairs be recommended by Buyer’s inspector. Paragraph 15 is hereby deleted from the contract, however, Buyer may perform such termite or wood boring insect inspections under the terms of paragraph 20 of the purchase and sale agreement.

_____________________________                                    ____________________________

Buyer                                                                             Seller

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