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Company Loan Type APR Est. Pmt.

Short Refi

Posted on: 13th Sep, 2008 05:53 pm
are there any area's of the country or any lenders which are allowing owners to short refinance where the situation is up side down and there is a hardship? of coarse the buyer would have to qualify the for new mortgage the the short refi price.
welcome jaepifano,

i suppose some lenders are offering short refinance. actually it depends upon individual situation and hardship. and the buyer would have to qualify for the short refinance loan. usually the loss mitigation department arranges for such plans so that you can pay off the debt. there are various other loss mitigation options. you can just check them out at http://www.mortgagefit.com/loss-mitigation.html and if you find an option even better than refinance, why not ask your lender as to whether he'll allow for it.
Posted on: 15th Sep, 2008 12:23 am
There is a new FHA program that allows the current lender to take 85% percent of the current value of the home (based on appraisal). THe new loan with FHA will go up to 90% to include closing costs on the new loan. THis is the only program that I know of designed to do this. However, it does not go into effect until October 1, 2008. THere are also a couple things to consider such as giving up to 50% of future equity. You can read up on it here http://www.hud.gov/fha/home080730.cfm
Posted on: 15th Sep, 2008 11:06 pm
We hired an attorney to help with a short refinance because our bank would not work w us, saying our DTI was too high. the loan has adjusted we paid an attorney and now the attorney is saying lenders aren't doing short refinances and so we will have to do a loan modification. the only thing is, the bank has already turned me down and a loan modification won't fix it to a low enough payment for us to stay. Any suggestions? Is my attorney telling the truth
Posted on: 23rd Oct, 2008 10:16 pm
Hi mseileen!

It will be better if you could speak to the bank about this. You can contact the bank and tell them what your attorney told you. See what they have to say. If they agree for a loan modification then you can take that. If the bank does not approve your loan modification, you can tell them that you want to go in for a short-refinance.

Thanks.
Posted on: 23rd Oct, 2008 11:51 pm
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