Is It a Good Idea to Stop Making Mortgage Payments During a Short Sale?
A short sale is considered as one of the best options to stop foreclosure; it lets the homeowners have a full control over the sale of your house and also saves them from the social stigma of foreclosure. However, a short sale is not that much simple, a number of things are involved in it. The foremost condition is the approval of your lender; you can proceed with the short sale only when your lender approves you.
All in all, in Houston, a thing that most of the homeowners worry about is whether they should continue making the mortgage payments during the short sale or not. Let’s tell you that every real estate agent in Houston, TX will inform you that it does not depend on a single factor. There are a number of considerations for taking a decision on this matter. Here we are going to mention a few of them.
Benefits of remaining current with your mortgage during short sale
- Easy qualification for loan
As per the Fannie Mae guidelines, the borrower can immediately get another loan if he complies with the mortgage delinquency policy and has never been delinquent. There are many lenders who provide such a loan. And as per FHA guidelines, the homeowners can get an immediate loan after a short sale if they have been never late with their mortgage payment.
- Credit score protection
If you are current with your mortgage, it is going to help you with the credit report. The absence of late payments will protect your credit report from the negative effects. When your lender will report Paid in Full, it will make a big difference to your credit report. And this would also help you in qualifying for another mortgage in the future.
- Ability to cancel without any penalty
There are the chances that your lender may not accept the offer made by the short sale buyer or your home does not sell. In that case, remaining regular with your mortgage payment will let you cancel the listing without any liability. You can process with the further processing without any issue.
- Stress-free processing of short sale
If you have not skipped any mortgage payment, your mind will be free of stress. So, you can concentrate on the short sale process and can deal with it the easier way. You are no more likely to act better if there is nothing worry other than the short sale process.
So, as per the above-given facts, it would be good if you remain regular with your mortgage payment during the short sale process. However, you are also recommended to consider other things. For an instance, most of the banks and lenders accept the short sale if the borrower is in default. Though there is not rule to be in default for processing a short sale, lenders give priority to those who are in default. Also, you can save that money for future expenses as you may need to rent a house for a particular period or more. It would be a good decision to seek the help of a certified property expert in Houston to choose the right option for you and to get help with foreclosure.