I was searching the web and the term "short refinance" came up.

Asked by Freedom, Woodbridge, VA Fri Jan 28, 2011

I was searching the web and the term "short refinance" came up. I have always had great answers on Trulia from the agents and brokers......Like many home owners, I am underwater in my mortgage, with no employment problems and no late payments. I just don't like paying for a depreciating property. I am now renting based on advice I got here. In two years I hope to take advantage of an improved housing market and sale. If in 2 years I can break even by selling my home here in the Northern Virginia area, do I consider a "short refinance"?????

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Nathan Corye…, Agent, Alexandria, VA
Tue Jul 10, 2012
This Question is Very, Very Much based upon how drastically in Negative Equity you are? $10K in Negative Equity or $500K in Negative Equity? The right choice on a Short-Sale largely has to do with the Extent or the Measure of Negative Equity Position! This is Mainly because you can start to quantify for yourself OK, is it going to take 5 years OR is it Going to take 25 years for this house to be worth this again? If your in 50% Negative Equity doing a
Short-Sale makes alot of sense, If your only 10% in Negative Equity and you absolutley Love your house and have good employment it probably doesnt! After all its your Bank that is either going to accept or reject the Short-Sale anyway? The Short-Sale in the END is always the Sellers Banks decision.......
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Jim McCowan, Agent, Arlington, VA
Sat Jan 29, 2011
If at all possible, avoid ANY kind of 'short sale' or 'short refinance'. What you're doing now is the right way to go. I'm confident that, in two years, you'll be sitting pretty!
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James Gordon…, Agent, Hamilton, OH
Sat Jan 29, 2011
Freedom first your current lender must agree to a short refinace. Based on the information that you provided in your question it is not going to happen. Short refi's mainly are a pipedream. Your current lender would do a loan modification before doing a short refi and without hardship there is no way to get a loan mod.
Just be happy you are doing the right thing and everything will work out in the end.

By the way there are guidelines coming out for federally insured loans that were forclosed on. The plan is to go after people that did a stragic default with agressive collection methods. The plan also calls for denying someone that has done a stragic default from getting a government insured loan for 7 years.
Now arn't you glad you did the right thing?
Fannie Mae announcement "Seven-Year Lockout Policy for Strategic Defaulters"
http://www.fanniemae.com/newsreleases/2010/5071.jhtml?p=Medi…
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