Should I keep paying my mortgage while I am in the short sale process?


My realtor says that I don’t need to pay my mortgage while I am in the process of a short sale on my house. She says that it will not help my credit to keep paying, that it is a bulk hit from the short sale, that each missed payment does not pile up and make my credit worse. It sounds to good to be true, but why would she say it if it wasn’t true?

asked September 13, 2011

4 Answers


Maya, I’m not an expert (I went through a short sale myself earlier this year) so I can only comment on my experience. BTW you should read the responses to this question first:

I made my last mortgage payment on February 1st of this year and began the shortsale process shortly thereafter. We submitted I believe around March 1 and went back and forth and finally closed May 7th on my birthday. I have heard that banks won’t deal with you until you’re 30+ days past due on your mortgage (this is purely what I’ve heard though – I know there’s conflicting opinions out there and hopefully someone more experienced can clarify on the reality of the situation vs. what the official stance is).

One crazy thing that Chase did (they held my 2nd)- they threatened to block their own deal if I didn’t make the payment on my HELOC basically saying they would consider me in default and put a new lien on it which would blow the deal. As asinine as that sounds I didn’t want to take the chance that they were really that dysfunctional and risk a $150k close on a $450 payment so I kept current on the HELOC all the way through.

Anyways, I’m only one datapoint but hopefully this is helpful. I would definitely be interested to hear the experience of others.


Many people do not continue to pay their mortgages during a short sale simply because they do not have the money to make the payment. If you do have the money to make the payment and there is no hardship, I would question what the hardship might be? Unless the current lender feels there is a likelihood that the loan will become deficient in the near future, it is doubtful that a short sale will be granted.


your realtor is incorrect, they deal with loans but they are realtors not credit people. i completed a short sale and made all my payments, my score never went below 700 and 6 months later is back over 750


The Realtor is incorrect. With every missed late payment your credit score will drop according to MY FICO the guys that make credit scores.

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