Include Short Sale Purchase Addendum #1
This Addendum is included with the Disclosures
Be Sure To Complete The Top Section – Thank you!
2619 Senter Creek Court, San Jose, CA 95111
Offers Presented As Received
Exclude book small shelf mounted on wall in Master Bedroom.
Exclude large book shelf mounted on wall in Second Bedroom
Disclosures Online – Check MLS for Location
Two loans: (1) Ocwen (2) HSBC
PLEASE FOLLOW THESE DIRECTIONS AND INFORM YOUR BUYERS:
Listing broker has been doing short sales for many years. Our short sale process continues to evolve with the ever-changing real estate market; government programs; and program guidelines. The process is designed to ensure the quickest and easiest close possible. We know from experience that when the process is followed we reduce the need for further negotiations.
All buyers must be pre-approved with John Meussner with Total Mortgage. No Exceptions. See below regarding All Cash Offers.
Offers will not be presented to Sellers until we have a complete package to submit to the lender AND John Meussner confirms with Listing Agent that the buyers financing is “good to go.” Therefore, all parties are well served to start the process with John Meussner sooner rather than later.
Mortgage Loan Consultant
Cell: (484) 680-4852 Please have the Buyer or Buyers’ lender contact John Meussner. From there the buyer will be asked to provide written verification of income, assets, and closing funds. This pre-approval is used only to verify the buyer’s ability to close. The buyer may choose to use any lender of their choice. With ALL-CASH purchases, only a current bank statement is needed. Online account summaries are not acceptable. We need a CURRENT statement which shows the borrowers name as well as the available balance in the account. Names on the purchase agreement must match the name on the bank statement.
John Meussner will provide pre-approval within 48 hours after receiving all required documents and information.
BUYER TO PLACE DEPOSIT IN ESCROW: Initial deposit shall be a minimum of 1% of the purchase price and shall remain in escrow for a minimum period of 90 days. Upon Sellers’ acceptance of the offer the deposit check shall be delivered to escrow. Offer is contingent upon lien holder or lender approval. After 90 days buyer may exercise option to cancel the agreement and deposit will be refunded to buyer. Once deposit is received the MLS status will be changed to Pending – awaiting approval of short sale lender.
HOW TO WRITE YOUR OFFER:
SUBMIT HIGHEST AND BEST OFFER – DO NOT EXPECT A COUNTER OFFER
CAR Form RPA-CA (Be sure to use current form)
(If NOD is filed use CAR Form NODPA (Be sure to use current form) and modify the instructions accordingly
Paragraph 1. B. Include the Assessor’s Parcel No. It’s listed in the MLS.
Paragraph 1. D. Please be realistic with the number of days needed to close. Extensions may not be granted. If extensions are granted, it may end up costing your client a per diem charge. Unless it is an all cash offer – 30 days is realistic.
Paragraph 2. C. KD Realty – mark the box “seller exclusively” then include the full name of your brokerage and mark the box “buyer exclusively.”
Paragraph 3. A. Initial deposit to be no less than 1% of the purchase price.
Paragraph 3. A. Check the appropriate box: check … made payable to [actual name of Title Company] If you don’t know which title company, ASK before writing the offer or check the Preliminary Title Report found with the disclosures. Check the box Other and add: deposited within 1 business day after acceptance. Include a copy of the initial deposit check with the offer.
Paragraph 3.B. Mark the box OR and add: within 2 days of SS Lender approval. Note – increased deposit must be an amount equal to 3% of the purchase price (liquidated damages).
Paragraph 3. C. Complete this section. Provide the terms of the loan(s). Do not leave this blank.
Paragraph 3. G. Mark the box verification attached … and include the verification of funds with the offer. Be sure the bank statements are current. Online Summary pages are not acceptable. The short sale lender requires a copy of the bank statement(s) which shows the borrower’s name(s) and available balance in the account(s).
Paragraph 3. H. (1) Check the box, Letter Attached …and include the letter with the offer. Be sure the letter is current (within 30 days) and includes the lender name and contact information.
Paragraph 4. A (1) Termite Inspection Report shall NOT be included in the purchase agreement. Short sale lenders will NOT pay for termite inspections or repairs. Buyer retains the right to get a termite inspection.
Paragraph 4. A (4) Seller shall pay for NHDS – Sellers choice.
Paragraph 4. B (1) Seller shall pay for smoke detector and water heater …
Paragraph 4. B (2) Buyer shall pay …
Paragraph 4.C. (1) & (2) Seller to pay – Sellers choice
Paragraph 4.D. (1) Seller to pay
Paragraph 4.D. (2) Buyer and Seller to pay (50%/50%)
Paragraph 4.D. (3) Buyer shall pay HOA transfer fee, if applicable.
Paragraph 4.D. (4) Buyer to pay HOA doc prep fees, if applicable. Add: See Short Sale Addendum #1.
Paragraph 4.D. (5) Buyer shall pay private transfer fee, if any.
Paragraph 4.D. (6) Seller will not pay for home warranty. Seller will not pay for any other reports or inspection. Therefore, please do not include in the offer. This will only slow the process down or cause your offer not to be accepted over other offers.
Paragraph 8. Check the MLS Listing. If personal property such as washer, dryer, refrigerator are not included in the MLS … please do not request in the contract. This will only slow the process down or cause your offer not to be accepted over other offers. This is a short sale. Some sellers will include personal items such as washer, dryer, refrigerator, some will not. Check the MLS. If the items are included in the MLS then you may include them in the offer.
Paragraph 11. B. Mark the box – Short Sale Addendum (C.A.R. Form SSA)
Paragraph 11. B. Mark the box – Other and add: Short Sale Purchase Addendum # 1
Paragraph 11. D. Other Terms: As Is Sale – Buyers agree to be responsible for all seller obligations under the purchase agreement that may not be approved by the short sale lender as referenced in Paragraph 3.D above and outlined in the Short Sale Purchase Addendum #1.
Paragraph 14. A. Mark the OR box and enter 0 days. All disclosures are online and must be signed and submitted with the offer.
Paragraph 14. B. (1) Mark the Box OR and enter 10 days. This means all inspections take place within 10 days of receipt of approval letters. All contingencies except loan and appraisal will be removed within 10 days of receipt of approval letters.
Paragraph 14. B. (3) Mark the Box OR and enter 1 days.
Paragraph 29. Allow ample time to respond. Please keep in mind: If there is an offer deadline indicated above make sure that the time to respond has not already expired prior to the date when offers are due. The goal here is to have an offer that the sellers can accept without having to counter to extend the time to respond. In other words, we want to avoid stale-dated offers which become void once the time to respond has lapsed.
PAGE 8 – REAL ESTATE BROKERS: Please include ALL your info and DRE License #’s and Date It! Include listing agents information below:
Listing Firm – KD Realty – BRE# 01366594
Listing Agent – Kathleen Daniels – BRE# 01366594
Address – P.O. Box 23665, San Jose, CA 95153
Telephone: (408) 972-1822 // Fax: (408) 724-6208 // Email: Kathleen@SanJoseShortSaleSpecialist.com
DO NOT DATE IN LISTING AGENT’S SECTION
CAR Form (SSA) Short Sale Addendum
ADD the Seller(s) name(s) in the opening paragraph at the top of the page. It is the blank space right above Paragraph 1.
- Paragraph 1. A. – Mark the OR box and write 90 … After Acceptance
- Paragraph 3. (ii) – Mark the OR box as specified in the Agreement
Short Sale Purchase Addendum #1
- Short Sale Purchase Addendum #1 (INCLUDED IN DISCLOSURES) – Complete the top portion of the Addendum:
- Enter Date of Purchase Agreement
- Enter the Buyer(s) name(s)
At the bottom of the page:
- Enter the date above the buyers’ signature line.
- Buyer(s) signatures where indicated.
DOWNLOAD THE ONLINE DISCLOSURES. RETURN THE SIGNED DISCLOSURES AND RECEIPT FOR DOCUMENTS WITH THE OFFER. Disclosure URL and code are contained in the MLS. Offers will not be accepted without receipt of signed disclosures.
The seller(s) and the lender(s) will not pay for:
- Home Warranty – Home Warranty will be paid for by the buyer or buyer’s agent.
- Repairs – All repairs have to be taken into account in purchase price, if a buyer needs certain repairs to be made in order to qualify for financing (VA, FHA), it will be at the buyer’s expense, before COE, and buyers will NOT be reimbursed for repairs if escrow does not close.
- Termite Work – Most lenders will NOT pay for termite work in a short sale. If the buyers require termite clearance in order to obtain financing it will be at the buyer’s expense. A termite report will not be part of the purchase contract.
- If the offer is FHA financing:
- Make certain the property qualifies for FHA (does the MLS indicate FHA possible?) If not, an FHA offer will likely not be an option.
Buyer’s agent must submit all offers via email in PDF format to Kathleen@SanJoseShortSaleSpecialist.com – This means ONE file. We expect a full offer package. Package means, bundled in one PDF file.
If any documents are sent via fax, they will be rejected. We must have clean legible documents to present to the lender. Wet signatures required by lenders. DocuSign or other electronic signatures are not acceptable. The Subject Line of the email must contain the Property Address, and Price Offered. The body of the email must contain all agent contact information. If agent uses a Transaction Coordinator, then all Transaction Coordinator contact information must be in the body of the email.
Buyer’s agents will receive a reply via email that the offer was received and is being reviewed. Listing Agent will respond within 24 hours or sooner. Offers submitted on weekends or holidays may be responded to the following business day.
PLEASE NOTE: If any of these guidelines are not followed, including the pre-approval process, then they will be taken into account by the seller, and your offer may not be accepted, or presented to the seller’s lender. Decide how important it is to you and your client to get your offer accepted.
We have created these guidelines to streamline the process and increase the odds of the short sale lender approving the offer in the most expeditious manner. By submitting a clean offer and a full short sale package we are able to move quickly into accepting the offer and submitting the entire short sale package to the lender(s).
We highly encourage you to print this out and present it to your buyers before writing an offer!
Once your offer has been accepted by the seller:
- Buyer will be required to place deposit in escrow
- Offer will be submitted to lender
- Listing Agent will stay in communication and report status updates
Once a Short Sale approval is obtained:
- We will obtain a 30 day approval letter from the lender(s) in order to close.
- You will be notified immediately once the approval is obtained.
- The contingency period starts upon written notification (email) of short sale lender approval.
- Any buyer delay in the closing could be subject to a per diem charge by the short selling lender, which will be at the buyer’s sole expense. We will make every attempt to notify you in advance when we expect lender approval. Please have your financing in order.
- Inspections should take place within 7 days of receipt of approval letter(s).
- Contingency Removal is expected on day 17, or other offers will be considered. Note: Lenders have shortened the time to submit backup offers.
If you have questions regarding the guidelines please email: Kathleen@SanJoseShortSaleSpecialist.com
Be sure to include the Property Address and offer amount in the Subject line.
Thank You for Submitting an Offer!
We look forward to working with YOU!