BiggerPockets

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?

My associates in California use the CAR. Plus have a addenda page.

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

I guess I have a different take on this since L/O are my favorite way to acquire properties. The Best L/O deals require equity-period. No fuss-No muss! Just go find the sellers and properties that match that criteria and save yourself all the aggravation.

I also feel that one must get advice from an attorney about how to word the different items on their addenda. Here are my reasons:

1) An attorney will make sure you are not going against any state regulations/laws.
2) An attorney might have a better way to actually word the statements.
3) And what I feel is the best reason- You will be covered since an attorney wrote them.
4) When questioned by a Lender you can honestly answer- my attorney wrote these up to protect all parties involved.

Hope this helps.
James

MOE...do you use that same addendum even if the subject property is listed with an agent?