Short Refinance

Asked by Chris Stewart, 22554 Sat Jan 5, 2008

I need to find a mortgage company who knows what a short refinance is and knows how to do them.

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Jorge Lopez, , Garden City, NY
Mon Dec 22, 2008
New Vision Financial Solutions is offering to all the mortgage brokers & mortgage Bankers the back end support to process all your short refinance applications. We are the fastest growing loss mitigation company in America.
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 don’t even know about the Short refinance option. Spread the word !!! Let’s make it happen !!!

For a Loss mitigation branch please contact us at 1866-570-4040 EXT 201 or 516-435-8777

Jorge Lopez
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Phil, , San Diego, CA
Wed Jun 25, 2008 is the industry leader in this space.....check them out....
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Amber Wright, , Phoenix, AZ
Thu Jul 16, 2009
I am currently working with a company out of Phoenix, Arizona. They were able to successfully get me a short refi on my home and are currently working on my second home. Which they are telling me is a little more difficult. I know they can not do all banks but they preapprove you based on your bank and financial info before they begin or collect any money. They were able to negotiate my short refi and get me my new loan. There website is for number is 623 986 5566....
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Dcdubbs, , Las Vegas, Las Vegas, NV
Sat Jun 20, 2009
How did this turn out for you. I have found the short refinance to be a fairly difficult thing. You are basically getting your mortgage company to lose money. Of course if you are already late, what is the risk. This article is a very good resource for the short refi…
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John Lawler, Agent, Hilo, HI
Sat Jun 28, 2008
Most people are getting a loan-modification confused with short-refinance. A loan-modification is done with your current lender where they can modify the interest rate or the term of the loan. This can be done yourself. A short-refinance, on the other hand, reduces your principal balance, often fairly significant. This gets a bit more complicated and is best handled by someone who specializes in doing these. For more information go to
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Other/Just L…, , Fleming Fitch Grant, Holly Hill, FL
Wed Jun 25, 2008
First step is to pursue a loan modification with your current lender as suggested below.

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.
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thinz, Agent, Allenhurst, NJ
Sat Jan 26, 2008
I'm assuming you are looking into this because you want to stay in the home...
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 if you have more details to share...I don't always get on this board...
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Pam Winterba…, Agent, Danville, VA
Sat Jan 5, 2008

Your best bet is to contact your existing lender to see if they can help as they may be more plyable towards doing this kind of transaction. Good luck.
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Paul Eakin, Agent, Fredericksburg, VA
Sat Jan 5, 2008
Hi, Chris..... typically a short refinance is done through the lender you currently have your mortgage with. If you haven't done so already, I would suggest you talk with your lender first and see what they have to say. In this market, they do not want any more foreclosures and should be willing to work something out with you. Good luck with everything! Paul
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