Can I Short Sell if Current on Mortgage Payments?
Published On: September 28, 2012 Posted by: TownsRealty
Is it possible to go for a short sale without missing mortgage payments?
Lately, there has been a very common question in the minds of all the struggling homeowners, which is whether or not they can opt for a short sale without missing a single payment on their mortgage loan. The answer is “may be” or “probably not”. Well, yes there is a myth among the homeowners that one can’t go for a short sale if he hasn’t missed his payments or rather you have to miss your mortgage payments if you wish to go for a short sale. But this is not always true in all cases. Just as you need to calculate your mortgage payments through a mortgage calculator, you also need to know the truth behind this entire situation. Read on the concerns of this article to know about the possibilities of opting for short sale without defaulting on your monthly mortgage payments.
Financial hardship – Is that all that you need to prove?
There have been many experts who’ve seen short sales completing successfully even when the seller never missed a single payment on his mortgage loan. Missed mortgage payments can damage your credit score and therefore when you have the ability to avoid missing the payments, why should you unnecessarily hurt your credit rating? Most lenders look at the credit score of the individual before initiating the process of short sale. You can prove your hardship in different ways and you should be aware of the fact that missing mortgage payments isn’t the only way to prove the same. Not all hardships requires being financial. They may even be medical, situational and even employment hardships.
Tips to consider while choosing this strategy of short sale
As the mortgage lenders all get requests about the prospects of a short sale without missing payments on the mortgage loan, they have designed certain strategies. Here are some of them.
It is not always that you need to miss your monthly mortgage payments and then opt for a short sale. You can still make the offer to the bank even when you’re current so that you don’t affect your credit rating while approving.
There can be a hardship that may be financial but even potential hardships or future hardships can also be considered. However, make sure that you don’t lie to the bank as this may lead to a mess.
After a short sale, you need to wait for at least 2 years before you take out a loan and therefore you should be able to check your potential financial situation so that you can try your best and wait for the right time to take out a new line of credit at the best rate.
Therefore, when you’re opting for a short sale, you shouldn’t be at all concerned about missing the monthly mortgage payments. Know everything before taking the plunge so that your lender doesn’t scam you in accepting something else.