I've had clients ask me if they should make a payment to avoid a charge off on a short sale. It's a risky situation if they don't. But I can't tell them to do it one way or the other. Every short sale seller has to make that decision for herself. I know it is often better to deal with the devil you know.
I closed a short sale in Sacramento a few days ago that was a HAFA short sale. I was very concerned that a second mortgage might go to charge off and land at another institution. That new collection agency might not participate in HAFA. The seller was taking a big chance by letting the loan go to charge off when one little payment of, say, $300, would guarantee she would receive $3,000 through her HAFA short sale. But I'm not the charge off police.
Read more about reasons to Avoid a Short Sale Charge Off.