This is a question we are asked constantly by sellers. The answer is somewhat complicated, as some banks or investors require that the seller be behind and others have no requirements regarding lateness at all.
Truthfully, no Realtor or third party representative should ever recommend that a homeowner stop paying their mortgage. This is a decision that only the homeowner can make. It would be wise to research guidelines of your bank and your mortgage’s investors so you can make an informed decision as to whether or not you want to continue to pay your mortgage.
It is important to remember that while some loans, like FHA loans or those with Fannie Mae, do require that the homeowner be behind on their mortgage, others do not have any guidelines about being behind and may send foreclosure notices if you do miss payments. If you receive foreclosure notices, you should seek legal counsel from a Foreclosure Prevention Attorney as soon as possible.
Additionally, just because you are current on your mortgage doesn’t mean that your short sale will be declined. Many short sales are approved when the homeowner is current on their mortgage.
If you have any questions or would like to learn more about this topic, please e-mail Shayna or call our offices at 410-779-1000 and one of our client coordinators will be glad to assist you.
Please note that LMS Law LLC in no way encourages homeowners to become delinquent on their mortgage payments. The purpose of this article and any other materials published by LMS Law LLC is to educate homeowners and Realtors on their options in short sales.