Short-Refinance

Short Refinance

A Short Refinance is a transaction where the lender agrees to accept less than the full amount owed on the current mortgage. However, rather than the property being sold as in the case of a short sale, it is refinanced by the same owner but with a different lender. The short refinance allows the homeowner to retain ownership of the property, while at the same time avoiding a foreclosure.

This option is only recommended for homeowners who have the financial resources available and want to keep their home, but don't have enough equity to engage in a traditional refinancing. By negotiating a short refinance with your current lender, you can obtain a payoff of less than the full amount owed, and then refinance your home with a new lender. Getting approval to perform a short-refinance would require you to get pre-approved with a new lender, while simultaneously contacting your current lenders loss mitigation department. In order to effectively execute a short refinance you first need to get pre-approved by a mortgage broker or a direct lender (Other than your current lender) experienced with short refinances, and then you can proceed with the necessary steps in negotiating a reduced loan payoff with your current lender.

Many people are regrettably familiar with the process of refinancing a loan in order to obtain lower monthly payments or take out equity. A short refinance is a transaction where your current lender will agree to accept a payoff for less than the full amount owed on the current mortgage. Since your current lender is taking the payoff the new loan would be refinanced with a different lender.

Visit our Short Refinance training center to see if it is a viable option, determine if you can qualify and learn how to proceed forward.


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