With the FHA Secure Short Refinance, when you owe more than your home is worth, there are typically three outcomes. Which option you are presented with in the outcome of your FHA Secure Short Refinance will depend upon the negotiations with your current mortgage lender.

1. Short Refinance Write Down – This is the option of choice and the option we pursue when we package an FHA Secure Short Refinance offer to your current lender. The existing lender writes off the amount of indebtedness that exceeds the amount that can be refinanced into the FHA Secure Short Refinance.
2. FHA Secure Refinance with subordinate financing – In many cases the existing lender will accept a secondary lien in the amount that the payoff is short.
3. FHA Secure Short Refinance with a partial unsecured loan – In some cases the existing lender will write off a majority of the existing loan and allow for the creation of an unsecured loan of a portion of the amount that cannot be covered by the new loan. An example of this may be that the new FHA Secure Short Refinance loan can cover all but $50,000 and the existing lender agrees to write off $43,000. They may allow for an unsecured low or zero rate loan to cover the final $7,000 in an effort to make the transaction work.

Apply for an FHA Secure Short Refinance today.

Find out about a Las Vegas fha Short Refinance.

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SHORT REFINANCE FHA SECURE, HOW TO GET THE BANK TO DISCOUNT YOUR MORTGAGE

In Arizona we have been seeing record numbers of foreclosures, record numbers of bank repos and record numbers of short sales.  Homeowners are faced with rising mortgage payments when their once low adjustable rate mortgages reset and climb.  A short sale has been a common answer to losing a home through foreclosure.

But now there’s a new answer; the short refinance FHA Secure.  The short refinance works exactly the same as a short sale with the exception that the homeowner remains a homeowner.  In a short sale, once an offer comes in it gets presented to the bank along with an application package from the seller to the bank asking to take a discount on the current mortgage.  Once the bank accepts the offer for less than what the seller owes the bank they have agreed to a short sale.  A short refinance works in much the same way as a short sale only in the case of a short refinance the “offer” presented to the bank is actually a copy of the homeowner’s brand new short refinance FHA Secure approval.  The short refinance approval, along with all the supporting documentation, is then submitted to the bank requesting a discount.  Once the bank accepts the discount, they have accepted a short payoff and agreed to a discount on the loan allowing for the short refinance.

A major benefit of the short refinance is that it allows borrowers to keep their homes.  The short refinance delights homeowners because they get a new start with a lower mortgage payment and a lower mortgage balance.

Why would the bank agree to a short refinance and not just foreclose on the property?  Simply put foreclosing on a property requires large amounts of legal fees and then the home is typically sold at a substantial discount off of the fair market value.  The short refinance allows the bank to avoid the majority of the legal fees and let’s the new lender make its largest loan based on the fair market value.

Read how the Short Refinance FHA Secure Helps 200,000 families

Apply for a Short Refinance FHA Secure loan

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Since September 2007 the FHA Secure mortgage loan, also known as the Short Refinance, has now helped just over 200,000 homeowners refinance their mortgages and avoid foreclosure. At this current pace the FHASecure mortgage loan is on pace to help more than half a million homeowners who are “in the right home but the wrong mortgage loan” to refinance their mortgage loan and avoid an emotionally draining foreclosure experience. Most of these homeowners have been trapped in exotic mortgages that have increased not only their mortgage payments but their overall loan balances.

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