Originally Published: January 31, 2012
Please be advised that the decision by any property owner to move out of their house before the completion of a short sale should be made only after considering the legal consequences of doing so and preferably after consulting with an attorney. Many short sale lender incentive programs (including HAFA) require residency by ALL borrowers. Moreover, vacating the property will cause the property to lose valuable homestead protections, the loss of which can have far reaching legal and practical effects.
As such, before any short sale seller makes the decision to move out of their property prior to the completion of a short sale, we strongly encourage any such seller to consult with an attorney to discuss the legal and practical ramifications of doing so.