Will your lender let you do a short refinance?
A short-refi, short refinance, or also known as a short-payoff, is a transaction, where the current lender agrees to accept less than the full amount owed on your property.
This process is similar to a short sale but, instead of the property being sold, it is refinanced with a new lender. The short-refinance allows the homeowner to retain
ownership of the property, while at the same time avoiding a foreclosure or possible bankruptcy and best of all wiping out negative equity!
How Does a Short Refinance work?
A short refinance transaction is a two part process. The first component is the equity re-negotiation with the lender. The second component is obtaining the refinance loan
approval. We can handle the both components for you and help you by obtaining the refinance approval.
The process to complete a short-refinance usually takes 6-8 weeks. It can take longer, depending on the current lender! If you don't have enough equity and you need
mortgage relief, we can eliminate your upside down equity and put you in a position to qualify for a refinance loan!
This process is similar to a short sale but, instead of the property being sold, it is refinanced with a new lender. The short-refinance allows the homeowner to retain
ownership of the property, while at the same time avoiding a foreclosure or possible bankruptcy and best of all wiping out negative equity!
How Does a Short Refinance work?
A short refinance transaction is a two part process. The first component is the equity re-negotiation with the lender. The second component is obtaining the refinance loan
approval. We can handle the both components for you and help you by obtaining the refinance approval.
The process to complete a short-refinance usually takes 6-8 weeks. It can take longer, depending on the current lender! If you don't have enough equity and you need
mortgage relief, we can eliminate your upside down equity and put you in a position to qualify for a refinance loan!
This is how a short refinance works: You owe $200,000 on a
house that you bought at the top of the market. Since then
house values in your neighborhood have fallen by 20 percent,
and your house is now worth $160,000. The rate on your
sub-prime adjustable-rate mortgage has gone up, and you
can't afford the higher payments. Instead of foreclosing, the
lender agrees to forgive $40,000 of the debt and refinances
the mortgage for $160,000 -- a loan you can afford.
house that you bought at the top of the market. Since then
house values in your neighborhood have fallen by 20 percent,
and your house is now worth $160,000. The rate on your
sub-prime adjustable-rate mortgage has gone up, and you
can't afford the higher payments. Instead of foreclosing, the
lender agrees to forgive $40,000 of the debt and refinances
the mortgage for $160,000 -- a loan you can afford.
Why can't a client call the bank directly?
Banks will never approve a short refinance without a legal counsel. If you are late on your mortgages and your home
was filed for foreclosure, banks will never approve you. We negotiate with your current bank as your attorney to
approve a short refinance and negotiate with a second bank to give you a mortgage with a lower loan amount.
was filed for foreclosure, banks will never approve you. We negotiate with your current bank as your attorney to
approve a short refinance and negotiate with a second bank to give you a mortgage with a lower loan amount.
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