A short-refi is similar to a short sale in that your lender is willing to accept less than the total amount that you owe. The difference is that instead of selling your home to a new buyer with a short sale you will get to keep your home because it is a refinance still in your name. For the next three years, the government is forgiving any debt relief offered by your lenders and you will not be taxed. By utilizing a new FHA mortgage it is possible to pay off your current lenders. Your new loan will be around 90% of today's current market value on a new 30 year fixed mortgage. your new loan based on a $650,000 value (x 90%) would be $585,000. The lenders are willing to do this because your new loan will be backed by FHA which means that the government will have the loan covered in case you default in the future. My name is Marcell Zamora and I work for shortrefime.com if you want to check us out. Best of luck to you! :)

You may want to call NACA

http://getprequalified.com/article/104830/mortgage_refinance…

Dee,

In all honesty you might want to contact a specialist who does short refi's. But this is what I do know first off you have to see what kind of loan you would qualify for like 90% loan to value or 95% loan to value or what ever the loan to value maybe. Once you have established what kind of refinance transaction you qualify for you will then have to go back to your current lenders and let them know this is what you are currently qualifying for. They will then have to agree to take a loss on their payoffs. From what I hear you have to show EXTREME hardship in not being able to make your payments. This process may take a while as foreclosures are a really big thing right now. I'm not sure of the exact time frame but buying a foreclosure is taking anywhere between 3-8 months. Please let me know if I can be of further assistance and if you need help being guided in the right direction. Thanks and good luck