Always. Just because you called you particular lender and they told you that you could not do a short sale unless you miss some payments, don’t believe it to be true. These people who answer the phones at these mortgage companies are low level personnel who do not care about your credit. Every borrowers situation is different and a short sale can be done while staying current on your mortgage payments. We have successfully closed many short sales where the borrower never missed a payment. However we are seeing more and more investors (owners of loans) deny short sale requests, due to the fact that there have not been any missed payments. Fannie Mae, FHA, and some other investors are starting to claim this once again. The important thing to note, is that if you are able to afford your payments, you should continue making them until we devise a plan for you based on your goals and objectives. Many times in short sales you need to gather further information from the lenders to determine what they want and are willing to do, before voluntarily missing any payments. If you have a true hardship and simply cannot afford your payments, well then there is no need to worry. Be sure to call for a consultation before to decide to miss any payments if you don’t have to.
UPDATE: 7-26-11: It is becoming more and more difficult to do short sales while staying current. A lot of the investors of these loans, including Fannie Mae and Freddie Mac, have put guidelines in place that state the homeowner needs to be at least 30-60 days behind on their mortgage. Not only that but HAFA also has their own guidelines as well. It is best to talk to a professional about your situation first, and understand that it will be a personal choice whether to continue making payments or not, and nobody can advise you of this decision.
Some of the legitimate reasons why a bank would allow someone to stay current on their mortgage but still allow a short sale are as follows, but not all inclusive:
- Impending Divorce
- Impending Job Loss
- Living off of savings or retirement that may soon be depleted
- Job Relocation
- Impending Retirement
- Expansion of Family