Many homeowners cannot make their mortgage payments due to various financial difficulties. They start wondering whether they should bear the late fees with mortgage payments or go for short sale. Well you should continue making your mortgage payments even if you have decided to go for short sale, since you as a seller will face negative repercussions.
Why should you keep making mortgage payments when you are going for short sale?
You should be in default to go for short sale as lenders tend to act fast on the file when you are a delinquent. A loan modification expert can guide you in this regard. No lender wants to hasten about short sale if the mortgage payments are up-to-date, but sellers have to be cautions as their credit ratings will fall. They can get FHA loan if their mortgage payments are regularly made.
Do you want to go for Short Sale?
Loan modification lawyers as well as lenders will consider short sale if the borrowers are at the risk of defaulting. If the borrower is up-to-date with his mortgage payments, he deserves some benefits. He can qualify for another home loan soon after the short sale. If you have not defaulted in your mortgage payment, the drop in credit will be negligible.
You can keep the home if it cannot be sold, but if the mortgages were not paid the lender would ask for the missed payments and penalty, and may go for foreclosure. HAFA guidelines state that the lender has to be paid in full for the borrower’s credit report. If you are not able to sell the home or if the lender does not accept the offer from short sale, you can easily cancel the listing and keep the home without any liability,
In conclusion, do not stop paying mortgage for short sale.