Marcell Zamora

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! :) - Thu May 29 2008, 10:55