Need help finding a lender for short refi to pay off current mortg. servicer.

Asked by Mike Olesen, Tue Nov 20, 2007

My home mort is 866k and the value is ~700K. I have spoken with my lender, who only a mortgage servicer. They do not refinance. They have taken my application for a short refinance but are requiring me to find a mortgage lender. I have gone to 6 or 7 so far and knowone is willing to work with me. They are not aware of a short refinance and my credit has fallen into the low 600's. I need some help finding a lender who will work with me. Maybe hard money could be an alternative until I can try to refinance the house with the current value rather than the upside value to loan I currently have. I have been under a 20% pay cut for the past 6 months with no end in site. I have been current with my mort. pmt thru Oct but this month I will be short $2000 on a $6100 payment. Please offer whatever suggestions you might have.

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The Hagley G…, Agent, Pleasanton, CA
Tue Nov 20, 2007
Mike- I am so sorry to hear about your situation.Unfortunately, a lot of folks are in the same boat. Have you spoken to an attorney or a tax professional about the ramifications of a short sale?

A hard money loan may not help you ut of this situation...even if you could find one. It will be difficult to find someone to loan you money when you're $166k (at least) upside down.

I'm sure you've done a ton of research...I'm hoping the link below may provide some new ideas. Good luck.
1 vote
C Jacobson, , Orange County, CA
Wed May 26, 2010
Mike - I can help you!!
email me at
0 votes
Keith Manson-…, , Milwaukee, WI
Fri May 7, 2010
You are trying to do something very difficult and that is if your current bank will allow you to reduce the principle that low. As someone indicated before, you should find out what your current lender will reduce the principle to. The original short payoff program was for a fha and had to have 90LTV. The issue was the lenders were not willing to write off the balance. I have heard of these deals closing but only second hand.

So what ever you do will be risky and difficult. If your in california I would think you would be able to find hard money but the question will be at what rate and with what colateral . Be prepared for the worst.

A modification might not reduce your principle but might be able to lower your payment. I guessing your interest rate is 7.25% given the 866K mortgage and a $6100 payment. If you could do a modification at 5% your payment would only be $4650. You still would need to work out the $550 dollars a month but that might be something that can be done or maybe you can negotiate a better rate.

Keith Manson

First Weber Group
Certified Distressed Property Expert
Metro Milwaukee
0 votes
Creditmaven@…, , Royal Oak, MI
Thu May 6, 2010

The first thing you should do is find out how much is your servicer going to short the pay-off.
Once you have that information then it may be easier to help you.
You mentioned that your servicer is requiring that you find a lender who is going to refinance your loan.
My advice would be that you contact one of the 6 lenders/brokers that pulled your credit. Your score should've been higher.
Tell them that you will be getting a short payoff and that you need a preapproval. They may be able to give you one based on the higher score that they pulled.
Once you have a preapproval, send it to your servicer and get the short refi process started.
When you find out how much they're willing to short your payoff then you will know which way to go.

Or, you can call a local mortgage broker and ask them to find you a hard money lender. Get a preapproval from them. My assumption is that the hard money lender will finance up to 65% of the value of your home.

So, your current lender would have to forgive a large sum to make this happen. But, you never know. They may rather do that than have to deal with another foreclosure.

Hope this helps a bit.
0 votes
Rchiuppi, , Garden Grove, CA
Wed May 5, 2010
hey call me at 714-747-7284

rob @

the short refi group
we have closed 41-50 through a private investor after 6 months you can refi to an fha 203 b at around 6 % interest
0 votes
Robyn Govert, , Scottsdale, AZ
Thu Nov 5, 2009
Hi Mike,

A couple of things that were not mentioned... Most of the time a short pay refinance is done through obtaining a new loan (in most cases, FHA). For the value of your home, you are over FHA lending limits in your area. You will have to get a conventional loan and come up with money down in order to make it work for you. Are you in a position where you are going to be able to come up with 20% down? Another avenue for you to take may really be looking more into getting a loan mod (if your lender will allow for it) for the time being. It normally isn't the best solution and its usually only temporary, but even though a short pay refi is a great thing for many, many people, its not going to work for everyone. Feel free to let me know if you have any questions.

Another avenue that you can look into is something that a colleague mentioned to me. The credit qualifications are looser and you can also have missed more than 1 payment. It gives you a loan at 95% of the value of the home with 7.25% interest rate and it is from a hedge fund group, I believe. If you can do that, and come up still with a little bit of the money, you could get in a better spot, keep the loan for a year, and then refi again when the times are a little less tough.
0 votes
Mimi, , Florida
Fri Dec 19, 2008
Do you have to do a short refinance with an FHA approved lender or can it be any lender. If my current lender is not doing it themselves, then how do I go about doing a short refinance?
thanks, mimi
0 votes
Jenny Talasa…, Agent, San Diego, CA
Mon Dec 8, 2008

Please call me and I can help you. We are Encompass Financial Group, Inc. My name Is Jenny Talasazan and I am an agent and able to help you. Please call me at 619-894-9339 or email me at or

You can go to

Jenny Talasazan
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0 votes
Chris, , Texas
Fri Oct 24, 2008
heres a lender who moves fast on good deals and risky ones as well
Web Reference:
0 votes
Keith Sorem, Agent, Glendale, CA
Tue Oct 21, 2008
I don't know where you got your information, but I think you need to professional guidance.

I would be happy to refer you to a top Realtor in Portland that can help you figure out what to do. Time is of the essence. Please contact me via my Trulia profile.

Sorry to learn of your trouble.

0 votes
Marie Cappel…, , San Diego, CA
Sat Sep 27, 2008
Hi Mike,

I work with Affinity Financial and am successful closing short-refinances every month. You can visit and click on Do-you-owe-more-than-your-home-is-worth? or call me personally at 858.693.5404. We don't charge fees, and if a short-refi can be done, Affinity-Financial can get it done. You can send me an email through

I'd like to know who your lender is. You should keep current with your mortgage. There is help.

Marie Cappello
Affinity Financial
0 votes
Sat Sep 20, 2008
Hi Mike,

Please contact me at 603-512-1884 to discuss this further or go to our website at We specialize in helping people in your situation reduce the principle balance of their loan, while staying in their home and having your current lender take a reduced settlement for your current loan amount. I can walk you through the steps, explain the process, and have my team investigate your situation further. There are no upfront costs so you have nothing to lose. I look forward to speaking with you.


Brett Wyman
Web Reference:
0 votes
Marie, , San Diego, CA
Sat Sep 20, 2008
A friend of mine had a successful short refinance with They knocked off $230,000 off their mortgage, and the bank let them keep the home. It was a life saver. Marie
0 votes
Gabe, Home Buyer, los angelos
Thu Aug 14, 2008
loan modification perhaps, or buy another prop using a family members credit going fha loan 3% down stop making mortgage pmts (it takes lenders 4-6months till eviction) save your money to buy another prop for forclosure. by the time properties go back up your credit will as well. cash out some money and invest on the downn cycle in the future. you need balls in life.
0 votes
Jack Lewis, , Florida, NY
Fri Aug 8, 2008
call buddy fylstra at 321-960-7622 he willexplain the options that are available to you.
0 votes
Sherry Carr, , Global
Thu Aug 7, 2008
I work with the investor that hold your mortgage note to reduce your payments and/or reduce the owing mortgage balance to the market value of your home. This is a total seperate product that I offer apart from my concierge service. You can log onto my concierge website and fill out the contact us form to get all the details.
0 votes
Tue Jul 22, 2008
My company specializes in short sales and short refinances. There are multiple government programs available for homeowners with affected credit to refinance their loan. Our process is two fold; first you will need to complete a prequalifcation form for our mortgage broker to see if you qualify for a loan, or what amount you will qualify for. Second we need to contact your lender to make sure they are willing to do a short refinance and work with us. Today the majority of lenders are not doing short refinances, not because they are a bad idea, but because they need to figure out a way to regulate them to only help the people who need it. I'd say only 25% of lenders or servicers are doing short refinances right now. With that said their are no guarantees if your lender will work with us on a short refinance... like with a short sale. But what we have found is that a short refinance is better for a lender facing foreclosure, because in most instances the homeowner will refinance at current retail value, where as most homes sold in short sales or out of foreclosure are being sold at 10-40% discounts. For more information please go to our website at Once there you can contact me and we can discuss the situation.


Brett Wyman
Real Estate Creative Solutions Inc.
Web Reference:
0 votes
Johanna, , Florida
Tue Jul 15, 2008
Well, the short refi is new but a desperately needed "cure". Your situation depends on various facts. Where you can go depends on your credit scores, your location, your income to debt ratios, as well as having a third party involved to work with you. I know that sounds like a pitch, but who you work with will be important because it takes a bit of finess. There are lenders out there who are lending money every day as well as lenders who do short sales and refis since it is better they walk away with something then nothing. Having said all this have you had any luck with your situation?
0 votes
Task Mortgage, , Orlando, FL
Sun Jul 13, 2008
Refinancing with a hard money lender is your best option. Regardless of credit your loan will be approved. The max LTV of 65% will be based on the appraised value. The rate is a little expensive but you are able to keep your home. Conventional lenders will require a good payment history for at least 24 months.
0 votes
Jack Lewis, , Florida, NY
Sat Jul 12, 2008
I have been working with 2 congressman in FLorida. As of July 15, 2008 lenders can write down the loss on a short refi. Where is your home located? Give me a call on Monday so we can discuss.
0 votes
Dan Harris, , New York, NY
Sat Jul 12, 2008
Any reason why I can't find a real answer hear in this post?

Just a few folks looking to drum up business with "I can help you, call me".

If you can really help, post substantive info, bank names, etc...

Perhaps in return for your honesty, you might be rewarded with a "LEAD"...

0 votes
Jack Lewis, , Florida, NY
Sun Jul 6, 2008
I need more info to see if I can help you. I just completed a short refi for a client that was not late and the serviving company took 55K less. I used the help of some congressional leaders to make it happen.

let me know if you would like to discuss?
Web Reference:
0 votes
Stewart, , u s
Sat Mar 1, 2008
I recently needed a loan as I was in a right mess! And I mean a mess! I thought I was never gonna get out of it until I read some articles on unsecured loans to help pay off my existing debt and relieve my anguish.
I saw a posting at Craigslist that was tagged ‘’do you need my help???’’
I replied to the posting and it turned out that the person had once being in a mess
Just like I was then.
We chatted and became friends after which he told me his experience about the internet and scammers.
He said he has been scammed many times and totally he lost almost twenty thousand dollars {$20,000}.After which he was referred by a friend to this private lender that offered him the loan amount.
He then asked me to go contact them, I was like maybe this is just another kind of scam but I decided to give it a try. It was all just like magic how I got my loan.
I never got scammed, I have never being scammed and I don’t have any experience of it and I never want to.
I just felt that for the fact that a stranger helped me out I should do the same.
If you are in need of a loan and would need their email address, here it is
0 votes
Lisa M., , San Diego CA 91941
Thu Feb 28, 2008
Im looking for someone to do a short refi also. The bank agreed to let my client to this so I would like to find any lenders who actually do this. Strong income but terrible credit. Help:)
0 votes
Loren Ginger…, , 52353
Wed Dec 5, 2007
Mike, I deal with short-refi's and short-sales everyday. I have a network of brokers that send me deals to work short-refi's and short-sales for. I am also a broker, but for the past few months, the negotiating has taken over my business and my Since you said you had already been working with your lender on the short-refi, you obviously wouldn't need my help, but what I would be willing to hook you up with one of the brokers in my network, that probably do the refi for you. If you are interested, e-mail me with your scenario and I would be glad to pass it allow to one of my brokers. The brokers I work with specialize in hard money and bailout loans, so if the short-refi is coming in at a descent LTV, I am sure they can help you. Good luck... Thank you, Loren Gingerich
Web Reference:
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Trent Chapman, , San Marcos, CA
Wed Nov 21, 2007

A short refi is hard to come by, mainly because your current lender will need to approve it before you miss a payment, otherwise you will not be able to quailfy for the refi with the new lender.

I have a client in Las Vegas who I am helping do exactly what you are trying to do. Please email me the best phone number at which to contact you and I we can talk and assess your situation (appraised value, income vs liabilities and credit repair options). Most likely the lender allowing the short refi is not giving you enough of a discount to make the new mortgage less than 80% LTV. Meaning, your home will not appraise for $875K to make the new loan amount of $700K an 80% LTV loan.

You are probably running into problems with the high LTV with the 6 or 7 lenders you have dealt with so far.

Worse case scenario, find a competent short sale agent to list your home. We can discuss questions to ask the listing agent when we talk about your short refi. Good luck.
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