What is short sale checklist?

When a short sale process takes place the lenders will need some information so the process of short sale goes smooth. This information of each individual that is involved in the transaction is provided in the form of documents. To make sure that all the documents are in place there is a checklist that helps the seller to keep the track of all the documents.

The checklist

  • The borrowers are supposed to submit information about their income. For this they must submit a financial worksheet that has been completed with signature and date. It will not only include the buyer’s income but also the details of the expenses.
  • The sellers are required to state the reason behind the application for short sale. Generally this reason is the hardships that the seller is going through and is shown by inability to pay the mortgages.
  • If there is an agent involved then the letter of authorization must be given to the agent for carrying out any transaction on behalf of the owner
  • All the proof of income information must be included by the seller just to show that they are undergoing such hardships that they need to give their property for short sale. This will include the two recent stubs, bank statements, letters from the people who have assisted in the payments of the mortgages, profit and loss statement etc.
  • The tax information of the past two years must be submitted.

Sales Contract For Buying Subject To

Sales Contract For Buying Subject To

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 AGREEMENT dated this _______day of_______________20_____ by and between _________________________________________________
___________________________________________ hereinafter “Seller” whose address is________________________________________________
________________________________________and _____________________________________________________________________________
hereinafter “Buyer” (and/or assigns or nominees) whose address is ___________________________________________________________________.

1. THE PROPERTY. The parties hereby agree that Seller will sell and Buyer will buy the following property, located in and situate in the County of ___________________, State of _______________________, known by street and address as ___________________________________________, more particularly described as follows (enter legal description below):
The sale shall also include all personal property and fixtures, except __________________________________________________________________
Unless specifically excluded, all other items will be included, whether or not affixed to the property or structures.  Seller warrants that property, improvements, building or structures, the appliances, roof, plumbing, heating and/or ventilation systems are in good and working order.  This clause shall survive closing of title.

2. PURCHASE PRICE. The total purchase price to be paid by Buyer will be $___________________ payable as follows:

Earnest money deposit (see below)                             $ _____________________
Owner financing from seller (see below)                                      $ _____________________
New loan (see below)                                                                    $ _____________________
Subject to existing loans                                                             $ _____________________
Cash balance due at closing                                                               $ _____________________

Said price is subject to appraisal by buyer and/or agent of buyer’s choice.

3. EARNEST MONEY.  The buyer’s earnest money shall be held in escrow by agent of buyer’s choice.  Upon default of this agreement, seller shall retain earnest money as his sole remedy without further recourse between the parties.

4. NEW LOAN.  This agreement is contingent upon buyer’s ability to obtain a new loan in the amount of $________________.   Buyer is not required to accept any loan with interest rate exceeding ___________% amortized over __________years or pay any closing costs or points exceeding $____________.   Buyer shall provide seller with written proof of a loan commitment on or before_______________, 20_____.
5. SELLER FINANCING. Buyer shall deliver a promissory note in the amount of $_________________.  In case of default, recourse shall be against the property and there shall be no personal recourse against the borrower.  As security for performance of the promissory note, buyer shall provide the seller a security deed which shall be subordinate to a new first mortgage not to exceed $_______________.

6.  EXISTING LOAN.  In the event part of the purchase price is to be satisfied by buyer taking subject to existing financing, buyer shall not be required to pay fees exceeding $______________ nor be required to show income or creditworthiness to the holder of said mortgage or deed of trust.  Seller expressly agrees and understands that buyer is taking the property “subject to” such mortgages or deeds of trust, and is not expressly assuming responsibility for the underlying loans. If the actual loan balance of said loan is less than as stated herein, the purchase price shall be reduced to reflect the difference; if the actual loan balance is more than as stated herein, then buyer’s required cash payment shall be reduced accordingly. Seller agrees to forfeit tax and insurance escrows held by said lender or its assigns.

7. SETTLEMENT.ISURABLE TITLE & CLOSING: Seller warrants that he/she is vested with full powers and authority to enter into this Agreement. If Seller has marketable & insurable title, no encroachments and property is not in a flood plain/zone, then this Agreement will be closed and the deed and other closing papers delivered within [   ]                  days after the acceptance of this agreement, & key copy given to Buyer, & all stipulations and conditions of this Agreement have been met,    OR  [  ]                     days after the tenant/owner vacates the house and removes all property/debris & key copy given to Buyer & all stipulations and conditions of this Agreement have been met. In the event that this Agreement is unable to close on or before the above stated date, then Buyer or Seller may, by notice to the other party (notice must be received on or before the closing date) extend this Agreement’s closing date up to seven (7) days from the above stated closing date.
If title is not marketable and insurable, title defects or encroachments will be cured at Seller’s expense, and Buyer will close within 10 days of cure. If Seller cannot provide marketable/insurable title to Buyer by closing, then the Buyer can, at his sole discretion, either: (1) extend this Agreement or, (2) have Seller return to Buyer all earnest monies paid and fees incurred for curing title and preparing for closing including, but not limited to,  surveys, attorneys fees and  appraisal. Once these monies are returned to Buyer this Agreement will be null & void.    Tenant and/or Seller must: (1) vacate and leases must be legally terminated prior to closing, (2)give 3 weeks advance notice to Buyer, when they’re vacating/moving.

Buyer shall pay the following costs in transferring title:  [  ] title insurance policy   [  ] loan assumption   [  ]  transfer fee   [  ] transfer taxes
[  ] recording fees   [  ]  attorney closing charges   [  ]  hazard insurance premium   [  ]  mortgage insurance premium
[  ] survey

The following Items will be prorated at closing: [  ] Mortgage insurance   [  ] Property taxes   [  ] PMI Insurance   [  ] Hazard insurance
[  ] Homeowner’s association dues   [  ] Rents   [  ] Other ____________________________

The buyer may extend the closing date an additional THIRTY (30) days by paying the seller $___________________in cash. Buyer reserves the right
to do a final inspection the day of closing.

8. POSSESSION.  Seller shall surrender possession to the property in clean, debris free condition, and free of all personal items on or before __________, 20_____ (“possession date”, In the event possession is not delivered at closing, buyer shall withhold proceeds from the sale in the amount of $__________ as security.  Seller shall be liable for damages in the amount of $______ per day for each day the property is occupied beyond the possession date. This paragraph shall survive the closing of title.

9. INSPECTION.  This agreement is subject to the final inspection and approval of the property by the buyer in writing on or before ______________, 20______ and is subject to a termite report from the buyer’s pest control company that is acceptable to the buyer.

10. ACCESS. Buyer shall be entitled a key and be entitled to immediate access to show partners, lenders, inspectors and/or contractors prior to closing. Buyer may place a sign on the property prior to closing for prospective tenants, contractors and/or assigns.

11. This agreement is subject to the final inspection and approval of the condition of the property by the buyer and/or associates, assigns and/or nominees in writing before closing.  This agreement is also contingent upon buyer’s inspections, approval and acceptance of all paperwork, leases, appraisals, tenant histories and completed title work.


_________________________________   _______________        ___________________________________  _____________
Seller                        Date            Buyer                               Date

_________________________________  _______________        ___________________________________     _____________
Seller                       Date            Buyer                     Date