What is a short refinance? How does one qualify?

19.06.10

A short refinance is a new type of FHA loan (FHA exception) that has recently emerged due to the economic conditions. Basically it is refinancing your current mortgage for less than you owe. 

This type of financing is being rolled out to forestall the high number of short sales and "strategic defaults" that are very costly to lenders.

A borrower may want to check this out, before making a decision to short sell their residence or simply walk away.  This is a very new loan product, so here's how it should work, in theory.

The home owner should call their lender to find out if they are participating in the short refinance program.  If so, find out if their current lender is actually doing those loans, of if you need to find an outside lender.  IF your lender is participating in this program but is not doing these loans, get a pre-qualification from an outside lender.  Here are some general guidelines before you go any further:

Source: Examiner.com

Refinance Mortgage Information

(Best Syndication) This video will explore the option of refinancing a loan as opposed to taking out a second mortgage. When you refinance a ...

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