Our bank told us that in order for them to even consider approving us for a short sale, we must stop paying our mortgage for 3 months (we understand the impact this has on our credit). What we don’t know is once we are approved for a short sale, do we start paying the mortgage again or a portion of the mortgage? I would think if we stop paying, the bank would foreclose on us. What’s the difference between not paying in a short sale and not paying in a foreclosure?
Thanks for your help!