Should you Stop Paying your Mortgage during a Short Sale?

To pay or not to pay.

Most of us may be unsure whether to continue or stop making mortgage payments to do short sale. But what should we really do?

There are factors that you need to consider and you have to weigh in the pros and cons of staying current or be in default. Let’s first discuss what will happen if you stop making payments during a short sale.

The positive:

-You’ll have more chance of getting approve on short sale by bank

-If truly facing financial difficulty, the lender might release you from liability.

The negative:

-You have to wait for 2-3 years to buy a new home.

-Your credit score will suffer.

- If you are not making payments during the short sale and the bank rejects the sale you could end up losing the home to foreclosure.

Now what happens if you stay current on your mortgage?

The positive:

-You can qualify for an FHA loan immediately after a short sale.

-You have a good credit rating.

-If the lender refuses to accept the offer from your short sale, you can cancel the listing without liability.

The negative:

- While applying for a short sale, there’s a chance the lender will not approve of the sale.

Whatever you decide, you have to know the consequences. If you are not sure and needed a second opinion, the best person to go to is a real estate attorney, they can give you a sound advice. Good luck!

 

 Are you a first time buyer? Looking to downsize or relocate in Greenville? We advise you talk to realtor before you start looking at homes. Please do not hesitate to contact us – no obligation!  We can do an online consultation if you can’t make it in person. We’re happy to serve you!

Keller Williams Realty Greenville 700 Airport Rd
Greenville, SC 29607

Selling your home? Contact us! (864)881-1352

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