Our Real Estate agent told us to stop paying the mortgage, when doing a Short Sale. Is this true??

Question

Our Real Estate agent told us to stop paying the mortgage, when doing a Short Sale. Is this true??

Answer 1

No,

If you don't pay your mortage you will ruin your credit. just because it is a "short sale" doesn't mean the sale time will be short. Get a new real estate agent.

Answer 2

That doesn't make sense.  If a person can't make their mortgage payments they go into foreclosure and if you owe more than the property is worth you do a short sale.... and that is ONLY if the bank approves the short sale.  It doesn't sound like your agent is experienced in short sales or foreclosures.  It sounds like you need a new real estate agent.

Answer 3

If you arent delinquent on your mortgage, then the bank isn't worried yet.  They are more likely to agree to a short sale if you are at least 30 days delinquent, this throws up the flag that the clock is running on the foreclosure process (after 90 days).  When banks agree to short sales it is because they stand to lose less money than if the property goes into foreclosure, If they feel the short-sale offer is outrageous they may opt to sell it at sheriffs auction and hope for more money.

Best bet is to call your mortgage company and ask them.

http://homebuying.about.com/od/4closures...

Answer 4

Yeah...stop paying if you want your deficiency balance greater.  Also, what about your property taxes....want to be pursued for more of that as well?   You'll end up paying more in the end.  If you can affort to keep paying...do so.  Good luck.

Answer 5

I don't know about short sales, but I think you're supposed to pay the amount due up until the time the sale is finalized....but it might be different where you are?

If you're not sure though, get a second opinion.

Answer 6

If you are doing the Short Sale because of foreclosure threat, then you probably are not paying on your mortgage anyway.  If you have no other options available, sell quickly.