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So What Exactly Is An FHA Secure Short Refinance?
Hi I'm Paul Dunn, Tucson's #1 FHA Mortgage Loan Originator and I am constantly getting the question "What is an FHA Secure short refinance".  A Short Refinance is a transaction where the current lender forgives debt in order to complete the transaction. 
Here's a real life example:  (very simplified)
Let's say you bought your home at a market peak for $450,000 and you still owe $425,000.  Since the time you bought your home, the market values have been dropping steadily and a similar home in your neighborhood just sold for $350,000.  You bought your home on an adjustable rate mortgage that is getting ready to reset... and your payments are going to rise (or has risen) $800 a month.  Instead of foreclosing the lender agrees to forgive $95,000 of the debt and you can now refinance your home with the FHA Secure Short Refinance.
The FHASecure Short Refinance helps keep people in their homes, lowers the number of completed foreclosures and helps preserve neighborhood home values.
The tricky part is getting your current lender to agree to a short pay.  You will have to undergo a total financial review and prove to your current lender that your loan is putting you into a position where ... more

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