California Short Sale Flips

[Herm M.]

Those that are flipping in Cali, are you using the option contract? Or standard CAR forms like the NOD Purchase Agreement?

I was just wondering...if there is an OPTION recorded for X investor, will the short sale lender be more likely to approve a short sale because they know that the sale has to go through the option holder?

[Moe M.]

This is verbiage we use courtesy of Old School:

1. This contract is contingent upon short sale approvals, acceptable to Buyer.

2. The Seller understands that he will receive NO FUNDS AT CLOSING.

3. Parties acknowledge that the purchase price has been initially based on an estimated negotiated debt at closing. During creditor negotiations, there may be several different purchase prices submitted by Buyer to the Lender(s)/Creditor(s) until a final discounted figure is accepted. Parties acknowledge their acceptance of the different figures and Seller agrees to authorize Buyer to prepare various negotiating offers with various prices without obtaining Seller’s signature or approval of each and every negotiating offer.

4. SELLER hereby grants the Buyer and or their representatives all of the necessary rights to immediately list for sale, market, negotiate and enter into a contract to lease or sell the property immediately to a third party for a profit. All documentation in connection with the foregoing will be made available at the Lender’s request.

5. Parties acknowledge that Seller may be asked by Buyer to sign a new or corrective contract for the resale of the property. Seller agrees to sign such contract should such signature be needed and requested by Buyer so long as such signature will not result in any financial gain for Seller and that such addition is for the purpose of demonstrating additional evidence as to the dissolution of all Sellers’ rights and interests in the property and to permit any MLS Listing.

Hope that helps.
Moe

Originally posted by SunnyCA:

Does anyone want to share their CAR addendum verbiage? ...or point me somewhere I can find a sample?