Short Refinance

Refinancing at current market value is the better option than loan modification. It is a transaction, where the current lender agrees to accept less than the full amount owed on your property. It results in reduction of principal on your loan. A Short Payoff is when your current lender reduces the principal balance on your mortgage and allows you to refinance or sale your home at current value.

Key differences:

Loan modification negotiates change in rates and terms leaving principal unchanged.

Short Refinance negotiates reduction in principal.  For More Information: Click Here

The process is similar to a short sale but, instead of the property being sold, it is refinanced with a new lender. The short-refinance allows the homeowner to retain ownership of the property.

In many cases, short refinance requires approval and consent from a new lender and will require better credit score along with a reasonable debt-to-income ratio. We are working with the largest pools of lenders, which are available to help with short refinance.

Refinancing at Market Value

• Must be current on mortgage payments
• Minimum middle credit score is 640
• No more than one 30 late mortgage payment in last 12 months
• Documentation of three most recent mortgage payments
• Payoff letter
• Written Principal Reduction Agreement from current lender - The agreement must include the name of the borrower and must indicate the loan amount being paid off
• Primary residence only
• Must have sufficient documented income to qualify for the new lower loan amount (no stated income)
• Must be able to prove hardship
• Borrower with two mortgages are not eligible at this time

Many lenders are now cooperating with a principal reduction to refinance your home

Step 1: is to contact your existing lender and verify that they will cooperate with a short payoff/settlement to refinance and obtain a "workout" packet/application.

Step 2: is to apply. We will request your employment, income, and asset documentation to verify that you will qualify for a new FHA loan at current market value and issue a loan approval.

Step 3: is to actively work together to negotiate with your current Lender to achieve the desired principal reduction for your refinance.

EXAMPLE: Short Refinance (Refinancing At Current Market Value)

Current mortgage:                                        $300,000

Current value:                                              $220,000

New loan(97.75% of current value):                 $215,050

Closing cost for new loan:                                 $5,000

Current lender approves short payoff for:        $210,050 

Troy Schuricht

CFS Mortgage Corporation
7720 N 16th st Suite 325
Phoenix, AZ 85020
602-354-0537- office
602-241-9912 - fax

troys@cfs-mortgage.com
www.BankerAdvantage.com