Monday, June 4, 2012

Making Mortgage Payments During Short Sale Process

Question: We are considering a short sale on the home we owned for many years. We contacted a short sale agent but we did not contact our bank. I lost my job last year. The agent advised us that we are $10,000 under water on the property not including an additional home equity line. We are current on our mortgage payments but we are wondering if we should continue to make the payments during the short sale process?

Response: You should have no problems doing a short sale, especially if you are only $10,000 under water. You need to contact the bank to initiate the short sale process. They will absolutely have to verify your financials to ensure that there is no way to repay the entire debt. In your case, where the amount of debt that needs to be forgiven is $10,000 but if you have other assets, it may be a problem. Since every bank has its own process in place, you need to contact the bank to determine if they will agree to a short sale in your case. It doesn't seem that there should be a problem with such a small amount being forgiven. As far as stopping payments goes, you need to know that when you stop making payments, you are always at risk of facing foreclosure. At the same time, if you stop making mortgage payments, by the time the short sale takes place, you will owe more money to the bank, and thus, a greater amount might or might not be forgiven. The amount that banks will generally accept at the short sale is roughly equivalent to the fair market value of your home.

In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.

The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2013 Law Office of Svetlana Kaplun, P.C.

modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer