Mortgage Refinancing

You may find this short refinance a timely remedy for you if you are indebted to your mortgage lender than the current value of your home.

What Short Refinance is.

It is a negotiation process in which you go into with your present lender expecting them to reduce your mortgage payoff amount and giving you the freedom of refinancing with another lender at a lower loan balance. How short refinance is done. How to get a short refinance may certainly appear very difficult in most cases while in some impossible. This is because many lenders do not simply want to agree at all.

However, few others may consider it as an alternative. It is mandatory that you have an obvious financial need to be considered for a short refinance which may be financial hardship, health issues or age related issues (fixed incomes). In some cases of many major banks you may need to first apply for a short refinance only if you have first been disqualified for a loan modification. That is you will be place under a probation where you make the modified payment for around three months for a loan modification while your bank gets through with the approval process. This could impose some problems sometime

Where the disappointment occurs is when the bank comes back to them at the end of the probationary period to demand that they need to come in with the difference between what they had paid for the past three months and what they should have been paying and tells them that they could not get the final approval In many cases this amount can cause mortgage default because of its hugeness.

Here, short selling or completing a loan modification may be the only options you are left with for those banks that would not accept short refinance. Creativity is highly expected of you. If you would chose short selling which may not be wrong, you may need to choose an investor to work with. Probably, a great opportunity may open up for you to sell and buy back from the investor at a reasonably already decided price. This may not sound so wonderful and safe but it could lead to saving some reasonable amount in your mortgage. Then you may think, it was worth the risk at the end.