Short Pay or Short Refinance - How To Get The Lender To Discount Your Debt

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Education & Training

Getting a Short Pay for a Short Refinance is possible and is happening on a regular basis.  With FHA Secure and the new FHA HOPE more short pay and short refinance opportunities are oppening up.

There are specific requirements under both the FHA Secure and the FHA HOPE to do a short refinance, and when those requirements ARE met most borrowers not only drastically drop their mortgage payments but also eliminate a portion of the mortgage they owe.

Imagine how it feels to go from stressed out financially distraught and owing more than your home is worth to being in a financially stable situation AND with an equity position in your home.

If you know someone who wants to keep their home but is having financial difficulties, contact me today!  The opportunity for a short pay or short refinance will not last.

Apply for a Short Refinance here.

Paul Dunn
Tucson's #1 FHA Mortgage Loan Originator
Arizona USDA Rural Development Home Loans

Paul Dunn  - Tucson's #1 FHA Loan Expert (First Priority Financial): Loan Officer in Tucson, Pima County, Arizona

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Rainmaker
265,524
John Thomas
Primary Residential Mortgage Inc. - Newark, DE
First Time Home Buyer Expert

Paul,

This is great information and I appreciate you sharing this information.  Can you get a FHAsecure loan if you are in a Ch.13 you filled right before you went to foreclosure to save your house and you are behind on the payments in the Ch.13?  Ch13, was filed about 6 months ago.

John Thomas - Certified Mortgage Planner - Primary Residential Mortgage

Aug 15, 2008 05:05 AM #6
Anonymous
Mike Smalley
Thanks for sharing Paul.
Aug 15, 2008 05:09 AM #7
Anonymous
David Kuiper, MBA, CMA, CMPS

I'm curious to know if the short refi needs to be done with the existing lender, or if it can be done with a new lender.  Wouldn't the existing lender "fight" to keep the loan since they're taking the write-down?

Aug 15, 2008 05:10 AM #8
Anonymous
Brian Kludt

Good stuff - Thanks!

Aug 15, 2008 06:09 AM #9
Rainer
173,075
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Looks like you did right with the post Paul. There are a heap of questions. Good job, that is what we need, more involvement.

Aug 15, 2008 06:23 AM #10
Rainer
4,378
Cheryl Orr
Evergreen Home Loans - Everett, WA

Good Information Paul.  Are you having difficulty getting the lenders to agree to the short pay? 

I had a client in my office the other day in tears because their lender (unnamed) would not work with them.  They are upside down on their mortgage by about $40,000.  They called their lender to try and do a workout and the lender hung up on them.   

On the other side, I know of a client whose lender was more than willing to work with them.  reduced their overall mortgage balance and lowered their interest rate substantially.

There seems to be a bit of confusion on this.  I think you should give us a class????

Aug 15, 2008 06:30 AM #11
Anonymous
Jo Ann Schlott, Casas Adobes Realty

Very interesting. I presume all this only applies to FHA loans?

Aug 15, 2008 06:38 AM #12
Rainmaker
62,049
Paul Dunn
Tucson, AZ
former orginator

WOW - this is some great response.  Thank you all for commenting.  I'll try to answer all the questions here...

Mark - No they don't have to be late.  A homeowner may be eligible for the short refinance whether they are late or not.  Most borrowers I have seen to this point have been current but with their adjustable rate mortgages adjusting upward either now or soon.  They have been put into a position of financial difficulty.

Larry - I was not aware of that regarding the status showing on the mortgage credit report.  Thank you for that, many clients will benefit from knowing this ahead of time.

Kent - thanks for commenting, we sure do hope to help many people who are struggling.

Sue - Some lenders are easier to work with than others.  Lender's have entire departments designated to handling short pay situations.  In some cases it can take a month or two to get a response.  In most cases you will get a response within a couple of weeks BUT the file tends to keep crawling up the ladder of approval until it finally gets approved by the MI company.  It can be very stressful for your borrowers but they need to be sure to let their current lender know what and why they are doing this.

I have to run but will answer the rest of those questions as soon as I can...

Paul Dunn
Tucson's #1 FHA Mortgage Loan Originator
Arizona USDA Rural Development Home Loans

Aug 15, 2008 07:33 AM #13
Anonymous
Jim Sahnger - Palm Beach Financial Network

Great information Paul!

Aug 15, 2008 07:34 AM #14
Anonymous
Bob Rutledge

I have been pleasantly surprised by the number of servicers who are willing to work through short refinances, there are some that do not but I would have thought there wouldn't be any.

Thanks for sharing this is great stuff to know.

Aug 15, 2008 08:22 AM #15
Rainmaker
62,049
Paul Dunn
Tucson, AZ
former orginator

Thanks for all the comments!  I'll answer the rest of the questions the next time I log in... time to take a break for the evening.

Cheers

Paul Dunn
Tucson's #1 FHA Mortgage Originator
Arizona USDA Rural Development Home Loans

Aug 15, 2008 02:22 PM #16
Anonymous
Eddie Jacques

I didnt know this could be done how can i get info?

Aug 15, 2008 03:04 PM #17
Anonymous
Diane

Very interesting information. I know this will help people.

Aug 16, 2008 04:42 AM #18
Anonymous
Robert

This is a very interestng, new program.  I'm sure a number of people who are currently under severe pressure will jump at this.  Good work, Paul, in alerting us to this program.

Aug 16, 2008 06:51 AM #19
Anonymous
ThinkRight

Great information Paul

Aug 17, 2008 10:59 AM #20
Rainer
1,144
Jacob Nordby
Primary Residential Mortgage - Boise, ID

Paul,

I have several clients who I think this would help...tell me more!

 

Regards,


Jacob

Aug 18, 2008 01:17 AM #21
Anonymous
Gabe Terreson

Good stuff, Paul. This should help a lot of folks.

 

Gabe

Aug 19, 2008 05:03 AM #22
Anonymous
Steven M. Levitt, CMPS, CRMS

Just another example of why consumer's should be dealing with mortgage professionals whom are experts in a specific niche. Great information, and keep the homeownership dream alive.

Aug 19, 2008 07:25 AM #23
Anonymous
Tim

Paul,

Your web site is excellent!  The information blew my mind.  It's now saved to my favorites.  Thanks!

Aug 21, 2008 05:44 PM #24
Ambassador
754,969
Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Paul,

Interesting stuff!  Let's see how it plays out.  I'm not getting cooperation from lenders.

Mike in Tucson

Aug 23, 2008 04:50 PM #25
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Rainmaker
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Paul Dunn

former orginator
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