MLS Short Sale Addendum

Guide to Understanding the MLS Short Sale Addendum Form

The world of real estate can sometimes be filled with complex jargon and confusing procedures. Among these, the MLS short sale addendum often stands out as an aspect that many are not familiar with. Yet, this document is no less than the behind-the-scenes superhero, swooping in to save the day during tricky real estate transactions.

Understanding MLS Concept

An acronym for Multiple Listing Service, MLS essentially is an expansive database where real estate brokers can freely share details on properties up for sale. It's kind of like their secret weapon - a tool they can use to pinpoint homes that match their clients' unique needs, monitor the pulse of the market, and work hand in hand with other brokers.

Deciphering the short sale concept

A short sale is a transaction where a homeowner in financial distress sells their property for less than the remaining amount on their mortgage. This route is typically chosen as an alternative to foreclosure. The 'short' in short sale refers to the difference (or shortfall) between the selling price and mortgage amount. In all short sales, the lender must approve the transaction as they are agreeing to a reduced payoff to release the existing mortgage.

Unveiling the MLS short sale addendum form

This form denotes a crucial facet of a short sale property listed on the MLS. The MLS short sale addendum is akin to a handy guide, effortlessly directing you through the subtle twists and turns, potential obstacles, and pragmatic aspects of such a transaction. It lays out every detail of the short sale with perfect clarity and ensures that everyone involved is shielded from any future issues. 

It is basically an agreement where the buyer acknowledges the complexities and uncertain timetable associated with short sales. Also, it holds the seller accountable to share their financial scenario openly, cutting down risks enshrouding the sale process to a minimum.

How to Fill Out MLS Short Sale Addendum

To complete the MLS short sale addendum template, you can follow these steps:

1. Begin by entering the seller's full name or names in the space provided under "Seller Name(s)." Ensure that all parties with an ownership interest in the property are listed here to comply with legal requirements.
2. Proceed to fill out the "Property Address" section with the full and accurate address of the property that is subject to the short sale. Include street number, street name, city, state, and zip code.
3. If applicable, input the MLS number in the section labeled "MLS# (If Applicable)." This is the unique identifier for the property within the Multiple Listing Service system.
4. In the main body of the addendum, note that by completing this form, the seller authorizes Multiple Listing Solutions to disclose to relevant parties that the sale proceeds may not cover all associated costs. These costs include closing costs, taxes, outstanding mortgages, and other liens, as well as the commission owed under the listing agreement.
5. Towards the bottom of the form, you will see sections for dates and signatures. Fill in the date on which each party signs the form in the "Date:" fields. 
6. Directly beside each date field, signatures of all individuals or entities with an ownership interest in the property, or their authorized representatives, must be provided in the "Signature:" sections. Also, here you can use the sen to sign function.
7. Lastly, include contact information for the seller, such as phone numbers and an email address, in the respective fields labeled "Phone 1," "Phone 2," "Fax," and "Email." Ensure this contact information is current to facilitate smooth communication regarding the short sale process.

By completing each of these sections accurately, the addendum will be prepared for submission, enabling the listing and sale process to proceed with transparency regarding the financial contingencies involved in the short sale.