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It is truly amazing right now the number of homeowners who are upside down on their mortgages and could benefit from a Short Refinance, if only they knew it existed. It isn't unusual for me to get a call from a homeowner who owes $30,000 to well over $100,000 more than what their property is worth (this is one trigger for the Short Refinance). Add to that the fact that adjustable rate mortgages from 2005 and 2006 are now resetting to higher payments there is a tremendous oversupply of homeowners who need to refinance, but because of their declining property values and lack of equity... they think they can't.
The truth is that in certain circumstances they can refinance. It's called the Short Refinance and is one of the least known and least understood mortgage transactions out there.
A successful Short Refinance works exactly like a short sale in that the current lender accepts less than is owed as a payoff for the transaction. The major difference is that in a Short Refinance the homeowner retains ownership of the home, just like a typical refinance.
When applying for a Short Refinance you are applying for both a new mortgage from a new lender, and you are applying for a short payoff from your existing lender. One of the most important documents you can provide is a budget worksheet.
If you are considering applying for a Short Refinance, print out the Monthly Budget Worksheet and complete it. It is important to be able to prove to your current lender that you are in a financial hardship and they will need to see your monthly cash flow.
For more information about the Short Refinance, you can
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.
Apply for a Short Refinance HERE.
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