Standard Purchase And Sale Agreement?`
When I have a homeowner who has agreed to sell me their house, subject to a successful short sale, what contact(s) do I need them to sign? On my first one I used a standard Purchase and Sale Agreement from my state's Association of Realtors. We left the amount blank. Is this binding? What do you all use? I'd appreciate any input. Thanks! 
Why leave the price blank? Your offer should be predicated upon a set price. It's up to you to dtermine what price you will pay, and tailor the Proposal to support that price.
Without a price, you have no agreement.
There is nothing to bind.
Set the price, then include all the restrictive language in the Contract.
Okay. That makes sense to me. So I've contacted the homeowner and they've agreed to let me assist them in a short sale. Now I have to get estimates on repairs and contact the lenders, to know whether or not they will even entertain a short sale. It could be a couple of days before I have the numbers from the estimate to know what kind of offer I want to make. What document(s) do I use to put the property under contract with the homeowner while I'm getting the estimates and getting through to the bank? I don't want the homeowner to sign something with someone else while I'm spending my time getting estimates and talking with their lender.
Thanks.
Usually, the mortgagee will require that the peoprty be listed with a real estate broker, and a Realtor contract will suffice... IF it includes the specific language needed for short sale. If you bought A Short Sale Primer, it's in there. If you didn't, then just make the Sale subject to mortgagee short sale approval. That's enough to get started.
I think there are two parts to your question.
1. How do you tie up the property?
You could either use an option or better a sales contract. Your problem is the unknown sales price. I hate to give rules-of-thumb ('cause you know where the thumb usually ends up),.but to just reserve the property try 60%-70% of market value. In this document you agree to raise or lower this preliminary sales price once the total costs are available and to execute a new (final) sales contract.
2. The short sale.
I think you have the cart before the horse. I would not go to the trouble of getting estimates and perhaps other expenditures before seeing it this owner and the property qualify for a short sale.
There are those owners who just don't want to pay,but can afford to pay. There are those owners who financially can't pay and will have to prove it. They may have assets that can be liqudate to satisfy the debt or the arrearage. Next, is there sufficient equity in the property to satisfy the debt or is it in the lenders best interest to take a short sale?
In other words, first find out if the lender will do a short with this owner and the exhibits they will require from the owner. One of the last items will be the sales contract from a qualified purchaser.. It would be good to read a primer on short sales before you go any further.
Parentetically, I once was interested in doing a short sale with a Credit Union. The gal who handled this department told me that they would not take less that
90% of Fair Market Value. Admittedly this is exceptional and it may have just been a bluff but it was sufficient to make me call, "Next".
Write an exclusive option good for forty-five-sixty days and buy it for 20 bucks. That will tie the house up while you firm up your valuation.
Lenders will not accept an offer that is on an Options to Purchase. Your offer should on the min. be a Standard Purchase Agreement. No Options at all.
Dollar Amount Negotiated Payoff Debt of Mortgage
This is the amount to put in the PSA.
daryl where did you learn that little tactic from?