When it comes to whether or not you should continue with your mortgage payments during the process of a short sale, there is no clear right or wrong answer. No one can tell you what you should do and no one, except perhaps a lawyer, should offer you this legal advice. Instead, outlined below are some of the advantages to keeping up with your mortgage payments during a Minnesota short sale transaction. See next week’s blog – Stopping Payments When Negotiating a MN Short Sale – to read the other side of the story and make a more informed decision.
First of all, not everyone can afford to make this choice. It is important that you do not let other parts of your life suffer when trying to continue with your mortgage payments during a MN short sale. If you can, make sure your family is supplied with food, clothing and the basic living essentials. Make sure the electricity is paid, that the car insurance is up to date and that there is fuel in the car to get to work. If there is money left over, then putting it towards your mortgage can offer some serious advantages in the long run. They are outlined below:
Keeping Your Credit and Future in Order during a Minnesota Short Sale
One of the biggest advantages to continuing to make payments is that you will be able to qualify to purchase a new home right away. If you have kept your payments up to date and have not been classified as a ‘delinquent’ then you will be able to immediately buy another home after a short sale. For some families, this can be a big incentive to continue with their payments.
Another big advantage to continuing your payment is that you will be able to protect your credit rating. Every time you miss a mortgage payment, your credit rating will go down which can result in higher interest rates and stricter loan terms in the future. Although undergoing a short sale in MN will drop your FICO rating a little bit, it will not nearly be as substantial if you continue with your payments during the waiting process.
Peace of Mind in Continuing Payments during a MN Short Sale
Although this is not true with everyone, many people find that continuing with their mortgage payments gives them a peace of mind and a sense of pride that they have not completely given up and accepted defeat. Understand that in a short sale, you are not accepting defeat- you are simply choosing the better alternative to a foreclosure. However, for some, this payment will help them sleep better at night.
Finally, perhaps the biggest advantage of continuing your mortgage payment is that, if the short sale is not accepted by your lending company, you do not have to necessarily give up your home. Furthermore, if the deal falls through, you can continue to list your home and hope for another short sale offer in the future without worrying about the lending company foreclosing right away.
