Short Pay Refi

Real Estate Sales Representative with REALTY WORLD-Harbert Company, Inc.

CNBC is talking about a short pay refi as we speak right now.  They are talking with a homeowner who is on a 5 year fixed, and then adjustable rate.  He put twenty percent down within the last two years and is still upside down on his loan.

His lender quoted him that it could hurt his credit by 150 points.  His lender should not talk with him about how much it will hurt or not hurt his credit, as each person is affected differently, depending on each individual factor on his account.

This consumer could be hurt on his credit score as well as be asked by his lender to pay a promissory note for the deficiency balance, thereby possibly ending up with two loans owing for his home that he will have to pay.




If you are considering a Short Pay Refi, educate yourself.



About the Author: The above info regarding Greenwood IN was provided by: Heather Fitzgerald, who has over 15 years of experience in real estate, title insurance, and lending that can be put to work for you. Heather can be reached by phone at 317-885-8858. Thinking of selling your home or buing your next home? We can help you with this. I service the following areas: Greenwood IN, Indianapolis IN, Franklin IN, Whiteland IN, Mooresville IN, Martinsville IN, Avon IN, Carmel IN, Westfield IN and surrounding areas. Check more properties at no obligation:

Copyright © 2009 By Heather Fitzgerald-Greenwood IN Real Estate----Short Pay Refi-All Rights Reserved.


Posted by


Heather Fitzgerald

REALTY WORLD-Harbert Company, Inc.




If you need assistance in Indianapolis IN, Carmel IN, Martinsville IN, Greenwood IN, Whiteland IN, Franklin IN and surrounding areas, considering buying or selling a home, or considering the option of a Short Sale, contact us today at 317-885-8858.  We have experience in Greenwood Real Estate, Indianapolis Real Estate, Greenwood IN Short Sales, Greenwood IN Real Estate for Sale,  Franklin IN Real Esate, etc.

About the Author: Heather Fitzgerald, who has over 24 years of experience in real estate, title insurance, and lending that can be put to work for you. Heather can be reached by phone at 317-371-2622.

Areas of Service: Greenwood IN Real Estate, Indianapolis IN Real Estate, Franklin IN Real Estate, Whiteland IN Real Estate, Mooresville IN Real Estate, Martinsville IN Real Estate, Avon IN Real Estate, Carmel IN Real Estate, Westfield IN Real Estate and surrounding areas. We are experienced Greenwood IN Real Estate Agents.

Copyright © 2018 By: Heather Fitzgerald- Greenwood Real Estate For Sale. All Rights Reserved.

Heather Fitzgerald on Facebook  Heather Fitzgerald on Twitter  Heather Fitzgerald on LinkedIn


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Jeff&Grace Safrin
F.C.Tucker 1st Team Real Estate - Valparaiso, IN

Amazing how 20% down got eaten up in 2 years ??  I told Jeff to buy me a bank for my Birthday!!

Great info Heather



May 30, 2009 05:49 AM #1
Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate

It is scary what is going on for homeowners across the nation.  I hope our nation gets back on track soon.

Jun 03, 2009 03:57 PM #2
Peggy James
EXIT Realty Associates - Woodbridge, VA
Woodbridge Virginia Area Real Estate Specialist

Hi Heather,

Good News is on the horizon for some if they are making the payments however just can't refinance because of they can't get the appraisal. Bank Of America called one of my clients  unsolicited that had a Pay Option Loan( pick-a-pay loan or Libor Loan) to remove the negative aspect of the  loan and to give them a fixed rate under 5% for a Jumbo Loan! The loan was restructured as an Interest Only Loan for 10 years.

Jun 04, 2009 05:18 AM #3
Heather Fitzgerald
REALTY WORLD-Harbert Company, Inc. - Greenwood, IN
REALTOR Greenwood Indiana Real Estate

Bank of America restructured the loan as an interest only loan for 10 years?

Did it put the payment to an affordable rate for them, where they could put the extra towards principals so they don't end up more updside down?


Jun 04, 2009 09:52 AM #4
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

So many people here in the valley are so far upside down that sometimes it doesn't even matter.  The sense of hopelessness runs pretty doggone deep here!

Jun 08, 2009 01:26 PM #5
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

I just heard about this for the first time on Wednesday and I'm taking a class on it this Wednesday and really look forward to it as it really should help my clients.

Todd Clark -

Jul 18, 2009 09:10 AM #6
Blatt + Cutino
Keller Williams Coastal Estates - Monterey, CA
Broker-Associate 831/206-8070*Call today*

I just heard about this today. Still not clear about how it really works.

Nov 07, 2009 07:47 AM #7
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Heather Fitzgerald

REALTOR Greenwood Indiana Real Estate
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