Home Buying in Littleton>Question Details

qiaokeli, Home Buyer in Littleton, CO

When should we sign a short sale contract and addendum? Our attorney says the contract and addendum make a whole agreement and after both parties

Asked by qiaokeli, Littleton, CO Fri Feb 28, 2014

agree on everything we sign the contract and addendum. But the seller's attorney says he does not even look at the addendum unless there is an executed short sale contract. But we do not agree 100% of the contract and that's why we have addendum! Should we sign the standard contract first then negotiate the addendum? Or should we negotiate till we agree and sign the contract and addendum?

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7
Hello,

Most often times the buyer will complete the purchase contract and the addendum at the same time when submitting the offer. The bank reviewing the short sale will not accept any offer that is not accompanied by an addendum.

Are you not working with an agent? As the buyer it is always in your best interest to do so as their commission is paid by the seller, buyers do not pay commissions. A good buyers agent will know how to write a contract that best protects you. It is especially important with short sales to work with someone that has worked on short sale files in the past. Often times people don't understand the process and can become very frustrated.

My team and I handle short sales on a daily basis and in my experience is their are still great deals to be had; with the right expectations and a little patiences.

If you have any questions about the short sale process or would like someone to help you with your current contract I would be more than happy to offer my services.

Ryan Martin

Jackson Realty Colorado
720.257.9262
Ryan@JacksonRealtyColorado.com
2 votes Thank Flag Link Fri Feb 28, 2014
I agree with Ryan. First, listen to the attorney. Second, make sure the attorney is a REAL ESTATE attorney and familiar with the short sale process. Third, it is helpful you have an agent who is representing you. If you look at the short sale addendum, it is more a notice to the seller and buyer of what the seller's rights are. Only 2 dates are negotiable - submission to the seller's bank and seller's bank approval. Most agents present it at listing, but since the dates are negotiable, it is generally signed with the purchase contract. It completes the contract. As a listing agent, most buyer's agents do not send it (and use the wrong contract), even though they are supposed to. It an attachment and is signed a day or so later but should be executed at the time of contract. Is your contract CBSF 1-8-13? Does your contract make reference to the addendum? Most times your agent will protect you with dates and your ability to withdraw in the purchase contract anyway and rarely, does a bank complete the short sale approval by the date we put in the addendum!!

I have only one question here. I am sure your attorney told you that whether or not you agree with everything in the contract, once you sign, you are held to those terms. Why did you sign something with which you do not agree? The short sale addendum does not change anything in the contract unless it is the 2 dates mentioned. If you want to see a copy of all of the Colorado contracts, you can go to
http://cdn.colorado.gov/cs/Satellite/DORA-DRE/CBON/DORA/1251…

I have 29 years of experience and if you are not working with a buyer's agent at this time, feel free to contact me at 303-973-2372.
1 vote Thank Flag Link Sat Mar 1, 2014
So you have two attorneys involved and you are seeking the advice of real estate agents about the "short sale" process? The picture you should be getting is that this is just a taste of why these transactions have the highest "degree of difficulty" in real estate.

If you are paying an attorney, I'd go with what they are telling you.......

Best wishes,

Bill
0 votes Thank Flag Link Sun Mar 30, 2014
I recommend you follow the advice of your Legal Counsel in this case, and only sign documents, contracts and addendum's reviewed and approved by your Attorney! Short Sales can be confusing and there is nothing "Short" about the time period, the only SHORT is what's owed on the note, and if the lender is willing to accept offers of less than what is owed.

Good Luck!
0 votes Thank Flag Link Sun Mar 30, 2014
Qiokeli,

As a buyer, you normally write the offer and the addendum and present it to the seller at the same time. The seller can sign them or he can do a counter and also amend the terms of the short sale if you agree. The main problem you have may be that there are 2 attorneys involved. :)

http://www.RobertMcGuire.aboutme.com
0 votes Thank Flag Link Sat Mar 29, 2014
It's great that both sides have attorneys, but where are the REALTORS in all of this? Is there a listing agent, who will be submitting the contract to the bank??

When I represent a buyer in a short sale, we submit a Contract to Buy to the seller's agent, along with a Short Sale Addendum and other Colorado required disclosures -- seller's property disclosure, SF disclosures, closing instructions. etc. The addendum just identifies the basics of what a Short Sale is, defines terms such as "Lien Holder", "Short Sale Acceptance" etc. when either party can terminate, etc. The seller then responds to your Contract to Buy, by either 1. accepting, 2 rejecting, or 3 countering. Once both parties agree to the terms of the CONTRACT, then the LISTING AGENT submits the contract, SSA, disclosures, etc. -- signed by BOTH parties.
0 votes Thank Flag Link Sat Mar 1, 2014
Qiaokeli,
It would be difficult for anyone here to tell you to ignore the advice of your attorney. They are in possession of much more information than we have.
0 votes Thank Flag Link Fri Feb 28, 2014
Thanks.
Flag Sun Mar 2, 2014
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