Can someone tell me how to get the forms to do a Short Pay Refinance?

Asked by Adrian Huntington, SAN FRANCISCO, CA Sun Feb 7, 2010

A Short Pay Refinance is accomplished when the Loss Mitigator allows you to refinance the property into an FHA loan at 96.5% based on the current value. Like a Short Sale, the lender agrees to write off the difference between the previous market value and the current market value.

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Adrian Hunti…, Agent, SAN FRANCISCO, CA
Sun Feb 7, 2010

I see many Loan Modification Companies advertise Short Pay Refinances, but I have yet to see any of the Lender's offers such a program. I posted the question in order to determine if anyone has had success in doing a Short Pay Transaction. I am skeptical that the Loan Modification companies advertise the service, but have little success. When I ask the Loss Mitigators, they tell me they don't offer such a program.
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The Hagley G…, Agent, Pleasanton, CA
Sun Feb 7, 2010
Your profile says you specialize in short sales, foreclosures, etc. That being the case, I am sure you are aware that the majority of lenders are NOT writing down principle.

Contact me thru my profile and I will send you the info that you need. It is the same packet that you would use for a loan mod.

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, ,
Sun Feb 7, 2010
Why not call the lender and ask if this is even an option? It sounds like you are looking to do a loan modification where the loan amount is modified as well, and the bank either writes off the difference, or takes it back once the property is sold. I believe that each lender has different ways that they will handle something like this, it is not something that FHA offers, because FHA is just insuring the loan, not lending the money.
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Scott Godzyk, Agent, Manchester, NH
Sun Feb 7, 2010
The home owner will need to contact the home retention department at their bank or mortgage company. The bank will not talk to third parties without written authorization by the home owner.
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