the Short sale addendum says
- There may be disadvantages to a short sale >>> (talk to lawyer/CPA)
- Short sale may adversely affect the sellers FICO score
- Seller may not be relieved of debt obligation tot he lender even if short sale is approved
- Seller may have a taxable event and receive a 1099-S for the unsatisfied debt
- Seller is advised to seek legal counsel and CPA tax advice before deciding to sell short
- Buyers are informed that the seller may receive back-up offers for lender consideration
- buyers and sellers acknowledge that it make take months to for lender to approve a short sale
- All loan costs will be paid by the buyer
- Buyer waives seller warranties about the condition of the home at Close of escrow
- Close of Escrow will be 30 days after agreement of short sale
Language that must be read and initialed says "
"Seller acknowledges that that Broker is not qualified to provide financial, legal or tax advice regarding a short sale transaction. Therefore, the seller is advised to obtain professional tax advice and consult independent legal counsel immediately regarding the tax implications and advisability of entering into a short sale agreement."