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SHORT SALES have ruined our country. SHORT REFINANCES could save our country.
Short refinances should be the norm.  They keep the homeowner in their home AND they reduce losses for the lender AND they improve the economy since home ownership stimulates economic growth.
A short refinance keeps the homeowner in their home, thus reducing the supply of homes on the market .  Short sales result in the homeowner losing their home; the loss of the American dream and creates economic disaster for everyone.
A short refinance entails the current lender or lenders forgiving debt based upon the current market value of the home.  The homeowner then refinances the remaining debt into a new mortgage.  For example, a home is currently appraised at $200,000.  The homeowner owes $275,000.  95% of the current value is $190,000.  The difference between $190,000 and $275,000 is $85,000.  The current lender(s) forgive the $85,000, enabling the homeowner to refinance the remaining $190,000 into a new mortgage.
As you can see, a short sale does the SAME action as a short refinance: a forgiveness of debt, BUT with a short sale, a stranger buys the home and the homeowner loses their home AND the supply of homes increases.  Lenders suffer larger losses, as well, with a short sale since they are ... more

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