Posted on: 23rd Jul, 2010 08:14 pm
Does anyone have proof that a Short Refi is/can be done as of July 2010? HSBC/Beneficial says they can't offer to refi because they only service my current loan - but their customer service and loan mod customer service folks have told me 3 times now (twice while applying for loan mod) that I should see about finding someone to do a short refi. Since my current mortgage is 250, value per zillow is 230-233, Can anyone tell me a bank or lender who can possibly do a short refi? The free consultation check at the main page of course comes back and says no offers because the value is less then the current mortgage. We have no lates on the mortgage in the 4 years of having the mortgage with HSBC, but other debts have suffered to keep the mortgage current. Hubby has a 675 CC, but mine has dropped to 611.
The process involves getting approved for an FHA Short Refi loan. It is an approval for a loan that is for up to 97.5% of the current appraised value. Once you obtain the approval, you will need to send a hardship letter alone with an offer to settle the debt for less than owed. What I have read is that if these are in excess of $60.000, that they may be refused. But since I do not have any personal experence, I cannot say for sure.