A commonly asked question by short sale clients is “Should I stop making my payments?”
There is only one acceptable answer:
“As a Realtor I cannot advise you to stop making your payments. Only a lawyer can advise you on that specific question. Please seek legal advice.”
A follow up question is often how does the payment status affect the lender’s decision making in a short sale. Frankly, no one knows the answer to that. If you read thousands of blogs about lender behavior in a short sale it will become clear that there are no consistent rules, published or unpublished.
On one hand you could think that the bank would be more considerate of the borrowers because of the sacrifices they made to keep the payments current during the short sale.
On the other hand many lenders specifically publish in writing that the seller must be delinquent on their payments to be considered for a short sale.
There are many other arguments for and against making the payments during the short sale.
So, it comes down to two answers; What does the borrower’s bank account enable them to do, and what does a lawyer advise them to do. The seller should also confirm that the lawyer understands real estate and short sales.
Dave Halpern
Louisville Short Sale Expert Realtors
(502) 664-7827
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