Short Refinancing

 and

Loan Modification

Who can a Short Refinance help?

A Short Refinance helps homeowners that do not have sufficient equity to refinance through normal channels. This type of refinance is most commonly used for borrowers experiencing a financial hardship. The most common financial hardships are:

1. Reduced income.
2. An adjustable rate mortgage that has an increase in payment beyond the borrower's ability to pay.
3. Circumstances beyond the borrower's control such a family illness or personal injury.

Why would a lender accept a Short Refinance?
Properties that end up in foreclosure typically have no bidders at the foreclosure sale when the property is upside down in value. Therefore, the lender ends up owning the property, which is referred to as an REO (Real Estate Owned). It ends up costing them tens of thousands of dollars to maintain these properties, along with the thousands they have already lost, due to the foreclosure itself. If a property goes all the way through foreclosure, the money lost in back payments, interest, late payment fees and attorney costs alone can be in the thousands. Then, if the property doesn’t sell at the foreclosure sale, they have additional costs of more attorney fees, clean up crew costs, maintenance and repair costs, insurance premium costs, taxes and realtor fees. Even on a property worth only $100,000.00, the cost to the lender to go through a full foreclosure can be well over $50,000.00. The costs involved of going through a foreclosure alone, gives most lenders the incentive to accept an offer to settle. Every situation will be unique and will be dealt with on a case by case basis.

How does the process work?
The first step is to complete our pre-screening process. We request that you complete some forms to explain your situation, and provide proof of income. Next we evaluate whether you are a good candidate for a Short Refinance. We will then get you pre-approved for your new loan and handle the negotiations with your current lender. If you do not qualify for a Short Refinance, we can help you with a short sale.

How long does it take?
The length of time involved for the entire process, truly depends on the lender. Lately, lenders have been bogged down with requests which have overloaded the loss mitigation departments of most lenders. For the most part, it takes between one to three months to complete.

How do they determine the value?

Most lenders get a BPO (Brokers Price Opinion) performed by a local real estate agent to determine what the property would be worth if sold on the market today. Other lenders run an internal automated valuation. During the process of the short refinance, we will keep in contact with your lender. If your lender has determined "their value" for your home, we will find out what they are expecting. We have seen wide variations between true market value and what your lender may consider the value to be.


What are the credit score requirements?
We have programs that will help you keep your property, no matter what your credit score is. We work with people with FICO scores ranging from 400 up to 800. Your credit score is not a factor, when it comes to saving your home. You do need to demonstrate the ability to pay your new mortgage. We look at the overall picture, and not just your credit score.

Short Refinance is cutting edge
Short Refinance is a new service that has evolved out of the softening real estate market. Unfortunately, we are only able to help certain people who qualify for hardship conditions and have loans with lenders that see the benefits of doing a "Short Refinance" over Short Sales and Foreclosures. The good news is that more and more lenders are getting on board and are even recommending people to us. If this is the case, please let us know up front... we can streamline the process for you.


How can I apply?

Call us now at 858-693-5400