Very often there arises a question in your mind as to whether you should stop making the mortgage payments since it is beyond your affordability. There are many mortgage questions and answers that a prospective homeowner requires knowing but very few actually solve their doubts. Unfortunately, this is a question that cannot be answered directly because you should not break the contractual agreement with your lender to repay the money you borrowed in order to buy your home. While taking out a mortgage loan, you should consider how much loan amount you need to take out for purchasing your dream house. It is a wise decision to use a mortgage calculator so that you may be able to understand your loan affordability.
The qualification of the mortgage lender The homeowners need to realize that most of the mortgage lenders will need a borrower to be late by at least 60 days before they may think of considering their short sale request. You need to know that the FHA requires the borrowers to be at least 31 days late in their mortgage payments before they will accept a borrower for a short sale. Besides, the mortgage lenders will not approve a short sale until the seller finds out a suitable buyer. If you have taken out a FHA loan or if your lender is taking part in the Home Affordable Foreclosure Alternative Program (HAFA), then approval can be granted former to the identification of a buyer. However, the homeowners need to understand there is no assurance that the mortgage lender will accept a short sale. If you start the process of short sale and stop making your mortgage payments, then you may find yourself losing your home unwillingly through foreclosure. Many short sellers get into the process with the thought that if the mortgage lender will not approve their short sale, they will have to lose their property. Thus, the homeowners need to understand that they can allow their payments to go late by 60 days and then restart their payments, or start making every other payment if they wish.
Some reasons to stop making mortgage payments during a short sale You may not have any alternative other than stop making the mortgage payments. When you do not have money in your hands, you will not be able to make the mortgage payments. However, there are people who do not want to make the mortgage payments by their own choice. The explanations that these people provide are stated below.
Saving dollars for a move – You must be aware that many homeowners are underwater and thus, feel that they require getting out from their present situation. Thus, they will stop making the mortgage payments during the short sale. This will enable them to save their hard-earned dollars once the short sale gets over.
Short sale may be shifted to a critical time period – The short sale may be shifted to a more critical time period for sanction. In case, you are not making the mortgage payments, it will be in the best interest of the bank to close on your short sale at the earliest time possible so as to lessen their total losses. You do not have to be in default to get the approval for a short sale. However, your request for a short sale is taken more seriously and given high priority if you’re late by at least 60 days in making the mortgage payments.
Lenders hardly force to make payments – It is seen that during a short sale, all the missed out payments are forgiven in most of the cases. However, there are exceptions too. If your situation is so worse that it stops you from making the mortgage payments or you have other financial difficulties to which you need to distribute the funds, then you may not make the mortgage payments.
Missing payments may turn you to be a defaulter – Short sales do not get approved every time. Some may never get a home buyer while the majority is mismanaged by inexperienced real estate agents who claim them to be short sale expert. Thus, if you commit the mistake of appointing an inexperienced real estate agent, there is high chance that you may end up facing foreclosure if you stop making the mortgage payments.
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