Want the bank to agree to a short sale of your home? You’ll probably need to stop making payments.

San Diego homeowners who have been trying to preserve their credit rating but need to short sell are often dismayed to learn that they’ll probably need to stop making their mortgage payments in order to be considered for a short sale.

This is because the bank wants to see that continuing to make payments is a hardship. If you continue to make payments, no matter how far you’re going into debt to do so, they can’t see the hardship.

Once you stop making payments, you’ll get the attention of the analysts, negotiators and investors at your lending institution(s).

However, this is not the end of the world. If your other payments are up to date and you manage your money carefully, your credit scores will begin to improve as soon as the short sale of your home is final. In as little as 2 years you could be eligible for another home mortgage.

The thing to remember is:Every short sale situation is different. If you’d like specific answers that relate to your situation,call 619-929-1413 or write td@tomdunlap.com to ask questions and get answers that relate to your specific situation.

You may even be able to get the short sale of your home approved with all payments current. This largely depends on your lender and how much weight they give to short sale hardship letters. Each asset manager and each homeowner’s situation is different.

If you need help figuring out if you should stop paying your mortgage so you can do a short sale in San Diego, please don’t hesitate to contact us. We’ve studied each bank’s guidelines, know what carries weight for them in short sale hardship letters, and have developed a working relationship with most bank negotiators – so we can guide you in making that decision.

If you’d like to talk it over, call 619-929-1413 or write td@tomdunlap.com.


Please note that the information provided on this San Diego short sale page is generic, academic information used for general information purposes and may not be construed as or relied upon as a promise for a specific outcome.

This site provides information about real estate, law, income taxes and credit scores as relates to borrowers in distress, short sales and similar situations. The site is designed to help users safely cope with their own needs. Information is not the same as advice — the application of law or regulations to an individual’s specific circumstances. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a lawyer, tax adviser or other specialist if you want professional assurance that our information, and your interpretation of it, is appropriate to your particular situation. The models in photographs accompanying the testimonials on this website are used for illustrative purposes and are not a personal endorsement.