Good morning all,

Has anybody worked with or knows of a lender that will work with home owner on a short sale refinance?  The way it was explained to me, is refinancing your residence at the current market value, the existing lender would accept the refinance from another lender at the lower amount (current value).

 

I am in California and would like to explore/discuss with a realtor or lender that has been successful with this approach.  New to me, I have never heard this before.

 

Thank You

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They must be talking about that elusive "principle reduction".  1 out of maybe 100,000 chance.  As far as a refinance at current value, I've never seen or heard of one either.

Thank you for your response.

I haven't heard of this. Sounds similar to the sham "sign the deed over to us, we'll buy the note BS..."

Lot's of ostacles for this to happen. Settlements on 1st loans usually only happen thru DIL or SS. Both require the borrower to move out of the property.

Also, doesn't seem to make sense for the party who would be doing the new loan. Who in their right mind would lend money at market rates to someone who's missed several payments when they can lend to an A+ borrower? It sounds like it would need to be hard money rates or subsidized through government or non-profit.

I could be wrong, but it doesn't seem to add up..

Thank you.  I agree, just had heard of it and thought I would inquire.  I appreciate your response.

Thank you Brian.  I appreciate your input.

Actually Brian. You can't have a FHA loan.

Here are the eligibility guidelines:

You may be eligible for FHA Short Refinance if you meet the following criteria:

  • Your mortgage is not owned or guaranteed by Fannie Mae, Freddie Mac, FHA, VA or USDA.
  • You owe more than your home is worth.
  • You are current on your mortgage payments.
  • You occupy the house as your primary residence.
  • You are eligible for the new loan under standard FHA underwriting requirements.
  • Your total debt does not exceed 55 percent of your monthly gross income.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

*Eligibility criteria are for guidance only. Contact your mortgage servicer to see if you are eligible for FHA Short Refinance and FHA2LP.

http://www.makinghomeaffordable.gov/programs/lower-rates/Pages/shor...

is the link. The problem is there are so few lenders that participate in it. The GSE's do not and if you have an agency or government loan, it is not eligible for payoff under this program.

Short refi's do exist, but they are more myth than reality (much like loan mods)

I work with a great lender name Eric Mitchell here in CA. Here is his info. Email or call him, he might be able to help. Tell him Chris Andries referred you.

Eric Mitchell, Senior Vice President
Priority Financial Network
Office: (888) 696-1344 Ext. 729
Fax: (888) 696-1344
[email protected]
I work with a great lender name Eric Mitchell here in CA. Here is his info. Email or call him, he might be able to help. Tell him Chris Andries referred you.

Eric Mitchell, Senior Vice President
Priority Financial Network
Office: (888) 696-1344 Ext. 729
Fax: (888) 696-1344
[email protected]
I work with a great lender name Eric Mitchell here in CA. Here is his info. Email or call him, he might be able to help. Tell him Chris Andries referred you.

Eric Mitchell, Senior Vice President
Priority Financial Network
Office: (888) 696-1344 Ext. 729
Fax: (888) 696-1344
[email protected]

If you are having a clients meet this criteria please send them to me, I might be able to help. [email protected] 

You may be eligible for FHA Short Refinance if you meet the following criteria:

  • Your mortgage is not owned or guaranteed by Fannie Mae, Freddie Mac, FHA, VA or USDA.
  • You owe more than your home is worth.
  • You are current on your mortgage payments.
  • You occupy the house as your primary residence.
  • You are eligible for the new loan under standard FHA underwriting requirements.
  • Your total debt does not exceed 55 percent of your monthly gross income.
  • You must not have been convicted within the last 10 years of felony larceny, theft, fraud, forgery, money laundering or tax evasion in connection with a mortgage or real estate transaction.

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