It is common sense - if you stop paying your mortgage and fall into default, your lender is going to start the foreclosure proceedings. If this becomes the case and you do not find a buyer for your short sale soon enough, you are going to lose your house out from under you. Continuing to pay the mortgage and maintain the upkeep in the property will ensure a much more successful attempt at selling your home via short sale and saving some of your credit for the future.
- Topic: ActiveRain Community
- Location:
- Massachusetts
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85,411
Hi Kathleen,
You are so right. I am always amazed when I call on an expired short sale and they tell me their previous Realtor® told them to stop paying the payments. It scares me. The liability the agent takes on for ruining the clients credit! SCAREY.
378,561
You're right on Nona! That is the worst advice we can give a client and it can come back to bite us in lawsuits later if we do that! We're here to protect them and look out for their best interests and if they can pay the mortgage for a short period of time, they will have much better luck selling it.
378,561
Hi Larry,
I've heard that rumor as well, but I'm going to leave at being called just that. From my experience with selling short sales, my clients have kept paying their mortgages and have been able to get approvals that lead to the sale. If a lender tells them to stop paying to be considered, then we can do that from there, but better safe than sorry.
53,521
Great post Kathleen! Cutting down on the "just made it" transactions would be huge in the industry! Nothing more stressful than trying to cram in a 20 day closing on a property that is going to foreclose if we don't get it done...If Attorney Scott Wrenn said it then that's the way it is!