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

Answers:

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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.