I plan to sell short. Should I make my mortgage payments anymore?

This is by far the most popular question asked by our Connecticut short sale clients. It is also the most difficult to answer, as we do not advise anyone to continue or to stop making their mortgage payments during a short sale. In fact, you'll be hard pressed to find any professional (lawyers included) to directly advise you here. Paying your mortgage during your short sale is matter of personal preference, and many lenders do not have requirements either way. Here are the pro's and con's of each to help you make an informed decision:

IF YOU CONTINUE TO MAKE MORTGAGE PAYMENTS DURING YOUR SHORT SALE:

Pros

Your credit will remain intact and the foreclosure process will not begin.
You can avoid endless harassing collection calls and letters from your lender.
Although more difficult, it is possible to have short sales approved for borrowers who are current on payments.

Cons

Your lender may require you to default in order to consider you for the short sale, but they may not be upfront with this information, leading to a much longer short sale process.
You will face much greater financial scrutiny and are at much greater risk of being asked to contribute cash or a promissory note in order to get the short sale approval.
You will deplete funds that would have been otherwise available to you.

IF YOU STOP MAKING MORTGAGE PAYMENTS DURING YOUR SHORT SALE:

Pros

Your lender will be facing financial losses and will be more motivated to pursue a workout with you, including approving your short sale more quickly and easily.
You will face less financial scrutiny and have much less risk of being asked to contribute cash or a promissory note in order to get the short sale approval.
You will have access to funds that would have been otherwise depleted, and are more likely to receive relocation incentives.

Cons

Your credit rating will decline with every missed payment.
If enough time passes you will enter the foreclosure process and there is no guarantee your home will not foreclose.
If foreclosure begins owner occupants will need to enter mediation - which will require going to court periodically.

NEED SHORT SALE HELP?

Last Updated on December 26, 2023 by Minna Reid

mortgage payments, short sale FAQ

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About the author

Minna Reid

Minna Reid is The Broker - Owner of Reid Real Estate Group. Reid Real Estate Group is a full-service Connecticut residential real estate brokerage, specializing in helping homeowners with legal and financial challenges including short sales, probate sales and tax lien complications.

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I got all these things and more the first time I spoke with Minna Reid. I was dealing with a home sale that, at first, had seemed uncomplicated and simple, but then was anything but. I needed help, and I needed it badly. 

From that first moment, Minna jumped immediately into action. She was thorough in her explanation of the things we needed to do and why, and took charge of the whole situation. I was able to take a breath and unclench my shoulders for the first time in weeks. I needed solutions, and she had them. I could not have asked for a better, stronger advocate. On top of that, she’s funny, personable, and knows how to relate to people (this is helpful not just when dealing with stressed-out clients—ME—but also with attorneys, other REALTORS, and difficult buyers).

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  I was about to give up and just turn my back on my home and walk away. However, I found Minna and she was a lifesaver! Other realtors tried to help me but made the situation worse and wasted my time. If you are in the unfortunate place of having to short sale your home, then you know it can be embarrassing and difficult, especially if you don't have real estate experience. Minna knew exactly what to do, and was very professional, knowledgeable, and, kind. Minna was on my side and handled all the challenges we faced with selling a house that at times seemed like it didn't want to be sold! I appreciate Minna and know that you will love her.
  
 
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  We are grateful to Minna for her knowledge, professionalism and expertise in shortsales. She truly cares about her clients and it is evident in the manner she represents them. She has a strong work ethic and keen negotiation skills when dealing with financial institutions and buyers. We strongly recommend Minna and her company if u want immediate results.
  
 
        Elizabeth Smith 
 2021-10-17
 
 
  I inherited my father's head and was completely in over my head. Minna was amazing in getting things straightened out with the mortgage company (which had been giving me issues for years) and was so responsive to my emails. I had a lot of questions, as this was my first time going through the selling process, and she was able to answer them all quickly. The selling process was so much easier than I expected it to be, thanks to Minna and her team!
  
 
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 2021-07-31
 
 
  My husband and I worked with Minna to sell my father-in laws house after my father-in law-died. 
Minna is highly knowledgeable in regards to selling estate properties. She took the time to explain the process to us and she was very responsive to our needs. Minna was also highly motived to assist us in selling the house quickly. We listened to Minna’s advice in regards to selling the house (during the bidding process) and the house sold for well over what we expected. 
My experience with Minna was very positive and I highly recommend her to anyone who is looking to sell a property. Thanks again for everything Minna!
  
 
        DanLing8 
 2021-04-29
 
 
  Minna has been a fantastic partner in selling our home. She was patient with us in explaining the differences between a short sale and conventional sale and helped us think through the pros and cons of each. During the process of the sale she was strategic and got us the best price for our sale. The process was painless and quick and every step of the way she managed each and every detail flawlessly.
  
 
        Anthony DeLuca 
 2021-02-23
 
 
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 2020-12-10
 
 
  Minna was the best thing that happened to us in a very long time. We’ve been planning on moving from on house and on with our lives and the house was simply an anchor. We’ve had two liens on the house that would take a long time to cure and we were forced to sell the house to settle with the bank. I’ve looked around for someone who specializes in short sales, not just an agent that did 2-3. The process took a while, but Minna was super persistent, and her strategic approach was close to none. We have lost two buyers, got a push backs from the back and lean holders and she was able to stay on top of it and at the same time, she kept us afloat emotionally. Because of her, we were able to leave CT and move to FL where we are currently waiting for our new place. Warm thank you to Minna and her team for doing what they do best. Marcin with family.
  
 
        Sarah Woodbury 
 2020-09-13
 
 
  I reached out to Minna when we were first considering a short sale. I didn’t know much about the process or how it worked so naturally I had a ton of questions. She answered all of my questions as well as explained the process in detail so I would know exactly what to expect. Several months later, we kicked off the sale. I had heard so many horror stories about what can go wrong in a short sale so I was very uneasy. With Minna’s expertise the process was so much smoother than I could have ever anticipated! It was just over three months from the time we listed to closing (which is fast for a short sale)!  Minna’s responsiveness and dedication along the way was a huge asset!! It’s because of her that our family is able to put the past behind us and move on to bigger and better things! I highly recommend her!

Do I have to miss payments to qualify for a short sale?

I plan to sell short. Should I make my mortgage payments anymore?

IF YOU CONTINUE TO MAKE MORTGAGE PAYMENTS DURING YOUR SHORT SALE:

Pros

Cons

IF YOU STOP MAKING MORTGAGE PAYMENTS DURING YOUR SHORT SALE:

Pros

Cons

Minna Reid

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