With real estate market values still declining, and our economy dragging along at a slow pace, many homeowners are put in a situation where they will consider doing a short sale on their home.  Some of the reasons may include that you received a job relocation to another city or state, and renting your current home is not financially feasible due to a negative cash flow situation.  Or you have simply lost your job, and are making payments from savings or retirement accounts. That can only last for so long.  Perhaps your mortgage rate has been adjusted upward, making your monthly payments higher than your budget can afford.  Sometimes illness or injury or other personal hardships have caused major financial problems. 

 

Any of these situations may make a Short Sale a very real possibility for you.  The question is, do I have to default, or stop making my mortgage payments to Short Sale my home?  The best way to get this question answered for you is to call your lender, and ask them about their policy on Short Sales. Be aware that this may take numerous phone calls.   If you don't get an answer you like the first time, you may either ask to speak to a manager, or call back and ask the same question of another employee.  We often hear that you must stop making mortgage payments to be considered for a Short Sale, but this is not the case with all lenders.  Obviously if you can not afford to keep making your payments, you have no alternative.  But it is to your benefit to work with your lender if they will cooperate.