New Vision Financials solutions team is working very diligently to have one of the best short sales, Short refi and loan modification processing center in the US. We understand that our country is going through a very tough economic crisis right now. With the products we offer we are becoming part of fixing this economic crisis, we are becoming part of the solution. In the last couple of weeks the short sales and Short refinance application has dramatically increased that we had to increase our internal operation staff. This shows us that in bad times there is still business out there. There is still people who need guidance in what to do in this market. There are millions of home owners that are upside with their homes. They donâ€™t even know about the Short refinance option. Spread the word !!! Letâ€™s make it happen !!!
For a Loss mitigation branch please contact us at 1866-570-4040 EXT 201 or 516-435-8777
If that fails, a short refinance may be possible. Here's an outline of the basic steps:
1.) Apply as a full documentation (2 years of W-2s, current paystub, proof of assets) borrower to a new lender. Tell the mortgage sales rep you're looking for a short refinance. He or she will determine how much your current lender might receive based on what you can afford now.
2.) Contact your lender for a hardship package from their Loss Mitigation department. The lender will need proof that you are conditionally approved by a new lender (the condition being approval of the short pay off amount) for the refinance. You lender will also need proof you no longer qualify for the mortgage you current hold. The application and supporting documentation from Step #1 will be the stuff your lender needs. Additionally, you will need to document the reason(s) why you are no longer able to keep to the terms of your mortgage. Job loss, health issues, and/or incapacity/death of a co-borrower are examples of circumstances beyond your control.
3.) Be patient. It's not uncommon for a short pay off decision to take 60-90 days as your lender will have to contact the end investor(s) and make good on the loss to them or gain approval from them for a loss on the mortgage.
4.) Bear in mind that a short pay off wil negatively affect your credit. This is true for a sale or refinance. Your lender must report the short pay off to the credit bureaus as an account "Settled Fro Less Than Agreed" or similar language. Mortgage underwriters will consider this the same as a foreclosure (unless Fannie Mae and Freddie Mac chnage their credit criteria guiedlines) which will significantly impact your ability to qualify for a mortgage in the future.
But there is hope. I have just gained a short pay off approval from a well-known lender (division of General Mortors) for 81% of the current laon balance, and the pay off is reduced enough to cover the home owner's closing costs.
Depending on your circumstances, a loan modifcation is probably going to be the only option that is feasable vs. a short refinance by the lender. Getting your existing lender or another lender to agree to a short refi is not generally agreed to because of the costs involved, and the risk the lender is already taking with you. It is possible, but the cost for you from the lender via interest rate, collateral, etc could be high.
A loan modification from your current lender makes more sense for them because they can still keep costs down, lower your front end payments to allow you to keep paying and be current, and put the relieved debt on the backend on your current loan. This is usually offered rather quickly by the lender to avoid the short sale process, and not have the lender accept a lower sale amount then what you owe. It is also more accepted to avoid a deed-in-lieu. Either way, if you want to stay, and depending on who your lender is, a loan modification could make more sense for you in the long run...
Hope this helps. Feel free to contact me directly at 732 822 6870 or firstname.lastname@example.org if you have more details to share...I don't always get on this board...