Form No: SSA-2 Revision Date: 12/09

SHORT SALE ADDENDUM - 2
The following terms and conditions are hereby incorporated in and made a part of the California Residential Purchase Agreement dated: ___________________ on property known as:___________________________________________________ ("Property") in which _____________________________________________________________________________ is referred to as ("Buyer") and ________________________________________________________________________________ is referred to as ("Seller"). 1. DEFINITIONS. (A) "Short Sale Acceptance" occurs upon Buyer's receipt of Seller's written approval of all secured Lienholder(s) short sale consent/approval to reduce their respective loan balance(s) by an amount sufficient to permit the proceeds from the sale of the Property to pay the existing balances on loans secured by the Property, real property taxes, brokerage commissions, closing costs, and other monetary obligations the Agreement requires Seller to pay at Close of Escrow. (B) "Lender Negotiation Period" is the period of time that occurs between the date of Confirmation of Acceptance of Offer (see page 8 of Form RPA-CA) and "Short Sale Acceptance" as defined above. Buyer and Seller agree that Lender Negotiation Period shall expire at 5:00 PM on ________________________________________________. 2. HANDLING OF BUYER'S INITIAL DEPOSIT: Buyer agrees to deposit initial deposit within 1 business day of Acceptance into the open escrow account at __________________________________ Title Company, which shall also issue owner's title policy in this transaction. 3. SELLER'S DUTIES: Within 1 business day of Title Company’s receipt of Buyer’s initial deposit, Seller will: (A) Update property status in local MLS to "Pending" status, making Property available for backup offers ONLY. (B) Submit only one accepted/executed contract to Lienholder(s) for approval. Seller covenants to sell property to Buyer contingent upon Short Sale Acceptance. (C) Provide all legally and contractually required disclosures to Buyer, for Buyer's review and approval. 4. BUYER CONTINGENCIES: With the exception of loan and appraisal contingency, all other Buyer contingencies shall expire 10 days after Acceptance. If Buyer has not cancelled this contract by the 10th day, Buyer shall be deemed to have released all contingencies other than loan and appraisal contingencies. Buyer’s remaining loan and appraisal contingencies shall expire 10 days after date of Short Sale Acceptance. 5.CANCELLATION. (A) Buyer’s cancellation of contract for ANY reason after the 10th day but before the Lender Negotiation Period expires or date of Short Sale Acceptance—whichever occurs first—shall constitute Buyer’s default and all deposit monies shall be forfeited to Seller as remedy for breach of contract, without any separate escrow instructions needed from either party. (B) Should Short Sale Acceptance not occur by five (5) calendar days prior to expiration of Lender Negotiation Period above, the Buyer reserves the right to issue a 5-day written notice of intent to cancel the contract. (C) If Short Sale Acceptance does not occur by expiration of Lender Negotiation Period above, Buyer may elect to proceed with the cancellation of the contract, and all deposits will be returned to Buyer at the sole discretion and instruction of Buyer. If Buyer and Seller elect to proceed with the transaction, Buyer and Seller will agree to extend the Lender Negotiation Period in a separate subsequent addendum. To the extent that any terms in this addendum conflict with C.A.R. Form SSA or any other element of existing offer/purchase agreement, the terms of this addendum shall prevail. The foregoing terms and conditions are hereby agreed to, and the undersigned acknowledge receipt of a copy of this document.
Date ______________________________________________ Buyer _____________________________________________ Buyer _____________________________________________ Buyer's Agent ______________________________________ Date _______________________________________________ Seller ______________________________________________ Seller ______________________________________________ Seller's Agent _______________________________________