I plan to sell short. Should I make my mortgage payment anymore?

I plan to sell short. Should I make my mortgage payment anymore?

This is by far the most popular question asked by my Connecticut short sale clients. It would also rank as my least favorite question as the truth is I do not feel it is my position to advise anyone to, or not to, pay their mortgage. In fact, you'll be hard pressed to find any professional (lawyers included) to directly advise you here. This is a personal decision that you will have to make yourself. I will however give you the consequences of the action either way so that you can make an educated decision for yourself:

If you DO MAKE the mortgage payment:

• Your credit will remain intact and the foreclosure process will not begin 
• You can avoid endless harassing collection calls and letters from your lender
• It may be possible in some cases to get a short sale approved for a current borrower
• Your lender may require you to default in order to consider you for the short sale, but they may not be upfront with this information
• The lender may be less motivated to pursue a workout with you as delinquent accounts take priority
• You will deplete funds that would have been otherwise available to you

If you DO NOT MAKE the mortgage payment:

• Your credit rating will decline with every missed payment
• After about 30 days your lenders' collection department will call endlessly and send threatening letters
• After about 90 days the foreclosure process will begin and there is no guarantee your home will not foreclose
• Once foreclosure begins I will recommend you enter mediation - which will require going to court periodically
• Your lender will be highly motivated to pursue a workout with you, including approving your short sale
• You will have access to funds that would have been otherwise depleted

Considering a short sale in CT?