This is the number 1 question asked by all of our clients here in Texas. In this article, I want to give you some things to think about. In deciding whether you should or should not stop making your mortgage payments, these are things we have learned from experience and face every day with our clients.
What happens when you make your mortgage payment?
When you are trying to do a short sale the bank is looking for a hardship, and this can be a number of things. A hardship can be a job loss, Income reduction, Forced relocation, Illness or a divorce. When you continue to make your mortgage payments the bank is less likely to accept your short sale. A lot of investors are rejecting short sales if you stay current. We have had lenders who will tell us just by looking at the file that our clients do not “qualify” because there loan is current.
A lot of our clients struggle with this fact because they do not want the missed payments to affect their credit. Most likely if you are in the situation of a hardship your credit will be affected in some way. If you continue to make your payments the bank will see that you can afford your mortgage and will not consider your “hardship”. The bank will not make your file a priority as you are not in “default”. This is a hard concept to understand as you would think the bank would want to continue to receive payments and still work with struggling homeowners. Unfortunately that is not the case, in order to be considered for a short sale banks will only review if you are in default. Banks are now requiring the homeowners to be at least 30-60 days behind on their mortgage. Although this goes for the majority of the banks, there are still a small few that will work with homeowners without being behind.
When you are considering stopping your payments you need to talk to a professional to see your best options for your situation. Every situation is different, seek help, and do your research. If you are in the Dallas/fort worth area give us a call we would love the opportunity to assist you in any questions you have.