If I am unemployed and cannot make my mortgage payments so want to do ashort sale, do I need to continue to make the mortgage payments?

Asked on November 5, 2011 under Real Estate Law, Michigan


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

As soon as you fail to make a mortgage payment in full when due, you are in default. At that time, the bank or other lender could foreclose on you and begin the process of taking your house--which would then prevent you from selling it. So if you don't want to give the lender the right to foreclose, you must keep making payments.

Note that  you can't do a short sale without lender permission: or  rather, you can always sell your home for any amount you want, but if you don't have the lender agreement to accept a short sale, you will still owe any remaining balance on the mortgage and could be sued over it. Only with lenger approval does a short sale wipe out the additonal mortgage balance.

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