Not Late on Mortgage Payments - Can I do a Short Sale?

I hear this question far too often for my liking. Please let me clear this up quickly. You do not have to be late on your mortgage payments to successfully sell your property via short sale.

In fact, I advise my clients to do the exact opposite. Read on.

If you are in a position that you can manage to make your payments on time, but cannot sell your home or investment property without doing a  short sale, making your payments will reduce the impact of the short sale process to your credit. A short sale may show as a settlement on your credit after closing which will have a negative impact on your credit. If you are also behind on payments, your credit will almost always suffer more. What this means is that after closing the road to rebuild your credit will be longer (and may have more pot holes!). Moral of the story: If you can manage to make payments and you are concerned about your credit - making the mortgage payments is a good thing.

Jesse Grumdahl is a Minneapolis Real Estate Broker and Realtor who is a short sale listing expert in Minnesota (with the #1 Re/Max Team in Minnesota for the last three years) who sharply focuses his energy on short sale listings in the Twin Cities metro area. Mr. Grumdahl does so with the help of his full-time, in-house staff that will always put his clients’ best interests first and foremost. Jesse’s goal is to get you out of your distressed situation with minimal damage so that you can move on with your life as quickly as possible. Jesse can be reached at our contact page or directly at Jesse@MnShortSale.com or 612-968-2161.