Granite Bay Short Sale - Should you stop making your mortgage payments during a short sale?

Granite Bay Short Sale – Many people think that in order to be eligible for a short sale you must stop paying your lender. That is not true.

Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Many lenders will approve a short sale, even if you are current on your payments. They will consider a short sale based on another hardship, such as a job transfer, job loss, or if you foresee that you won’t be able to make the payments in the near future. Should you stop making your payments? I am not a lawyer, and therefore cannot give legal advice.

I can tell you my opinion. It all comes down to what is most important to you. If reducing damage to your credit rating is important, then continue paying for as long as possible.

Continue paying your lender until the sale closes. Halfway into the short sale negotiations, the lender may tell you that they will not process the short sale until you are late on the payments. At that point you can make the decision to continue or stop making payments.

There are some reasons to stop paying your lender during a short sale.

1. You are tight on money. Yes, you will suffer additional credit damage. But, the benefit of using that money for other bills may outweigh the credit damage.

2. You are concerned about a deficiency judgment or promissory note. Many lenders will ask you for a promissory note if they think you have the extra money. If you want to reduce that likelihood, then you can decide to stop paying.

That decision comes with all the side effects such as credit damage and other problems. Many people also say that is unethical. (I am not going to comment on that. One could make the argument both ways. Every person has to decide what is best for them and make their own personal choices.)

Disadvantages of not making your mortgage payment.

1. Credit Damage. You will suffer more damage to your credit. That credit damage should go away in 2-3 years. In addition, some people use a dispute strategy to get the derogatory marks removed much faster. Some get them removed in 6 months.

The point of this article is that contrary to public opinion, you do not have to stop paying your lender in order to short sale your home. You can minimize the credit damage by continuing to pay until the short sale closes.

Are you interested in selling your property as a short sale? Call me at (916) 580-6084 for a free consultation. When you call, I will explain how the process works in detail and answer any questions you may have. Discover how other sellers successfully did a short sale and request a free consultation by clicking here.

Thinking about a Granite Bay Short Sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at mdpeek@gmail.com. I will contact you for a free consultation.

When we talk, I will explain how the process works in detail. If you prefer, then you can call me at 916-580-6084.

Discover how other sellers successfully completed a Granite Bay Short Sale and request a free consultation by clicking here.

Thinking about a loan modification? Our Granite Bay Loan Modification Kit has the instructions you will need to get a loan modification approved with your lender. Click here to request a copy.

Thanks for reading this, Mark Peek.

Mark is a Real Estate Agent at Keller Williams Realty. Granite Bay Short Sale:

Phone: 916-580-6084. mdpeek@gmail.com.

“Know Your Options”

View My homes for sale at www.CallPeek.com.

Mark Peek specializes in loan modification assistance and short sales in Granite Bay CA. Granite Bay Loan Modification Help, Granite Bay Short Sales. Granite Bay Short Sale Realtor. Short Sale Realtor. Granite Bay CA Short Sales. Granite Bay Realtor. Granite Bay Short Sale Specialist. Mark Peek helps sellers short sale their homes in Granite Bay, Roseville, Rocklin, Lincoln, Folsom, El Dorado Hills, Orangevale, Fair Oaks, Citrus Heights, Antelope, Rancho Cordova, Sacramento and surrounding areas. Granite Bay Short Sale.

Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Peek’s personal views and do not reflect the views of Keller Williams Realty. This information on Granite Bay Short Sale - Should you stop making your mortgage payments during a short sale is provided as a courtesy to our viewers to help them make informed decisions on Granite Bay Short Sale