During the short sale process, what happens to the homeowner's mortgage payments?

In a short sale scenario, the homeowner's mortgage payments continue as usual until the sale is completed. A short sale occurs when a property is sold for less than the amount owed on the mortgage, and typically the lender must approve the sale. While the homeowner may be facing financial difficulties and wants to enter into a short sale to avoid foreclosure, they are generally still obligated to make their mortgage payments during the process. Failure to maintain payments could lead to foreclosure proceedings, which complicates the short sale effort.

In contrast to other options, reducing or suspending payments could potentially help the homeowner in certain situations or with specific agreements, but standard practice dictates that payments are still expected as the short sale is negotiated. Forgiveness of payments is not a typical component of the short sale process, as it implies that the lender would no longer expect payment on the loan, which is not the case until the property is sold and the loan is satisfied, if at all.