Advantages and Disadvantages
of Not Making a Mortgage Payment

As a realtor, many homeowners ask me if they should or should not make their mortgage payment if they plan to pursue a short sale. There is no one answer. The answer may vary according to the specific situation and a home owner´s goals.

I do not give advice on what a homeowner should do regarding making or not making their house payment in a short sale, but I can point out the advantages and disadvantages:

Advantages of making your payments:

· It will be easier to find a place to rent when it is time to move.
· The home does not go into foreclosure, giving you plenty of time to get the transaction done.
· You will not receive any late payments reports on your credit report.

Disadvantages of making your payments:

· You will not receive any of this money back.

· You may be denied for a short sale until you are late. (This is a requirement for FHA and the HAFA program) and certain lenders will not look at a short sale until a homeowner is behind.

· The short sale process may take longer.

Advantages of NOT making your payments:

· It will be easier to qualify for a short sale when you are behind, if it is legitimate, because this shows a severe hardship.

· You can still live in the home while the short sale is being negotiated. However, when it is time to move a landlord may require an additional deposit. If you choose to not make your payments, you may want to put some of that money away for your move.