Short refinance - Loan Modification Forum

whatdidigetinto · 01-08-2009, 10:12 AM

So i got a mod for my option arm loan about 6 months ago to a 6.25%for the remainder of the loan my new payments with P&I are $3,890.00 and we are having a hard time paying this so i went on the FHA website and found a number on there and called and spoke to a guy that say he can try to get us an FHA loan and that he can try to speak to countrywide to see if they will accept less than what is owed so that my loan can be around 420,000 instead of 590,000 depending on the appraisal and what countrywide will accept he said it's called a short refi.Is this for reals or is he giving me false hope?Supposedly if this were to happen my payment can go down to about 2,600 a month!!!

Moe Bedard · 01-08-2009, 10:21 AM

Yes there is such a thing and it has been around for years......we are just hearing more about it with the programs such as the H4H coming out..............but the investor on the current loan would need to accept a short payoff...........which isn't that easy to do.....

Good Luck!

Keep us posted.......

whatdidigetinto · 01-08-2009, 10:30 AM

Thank you!i'll post after i meet with him on the 17th!

markmc2000 · 01-09-2009, 12:23 AM

Hey there,

Just want to point out that you may be giving up some legal benefits by re-financing if you original loan was non-recourse then you endup with a recourse loan. What this means is you could go from a situation where you could walk away without liability to a situation with liability for the balance. But news today out of the senate suggests that cram downs may be on the way for people in bankruptcy. I'm thinking that this could and should end up being the best long term solution to get out of this housing mess. Deal with reality and get people out of these huge mrotages so they have money to spend instead of paying $3500 a month in interest

Mark

01-08-2009, 10:12 AM	#1 (permalink)
whatdidigetinto Senior Member Join Date: Apr 2008 Posts: 155	Short refinance So i got a mod for my option arm loan about 6 months ago to a 6.25%for the remainder of the loan my new payments with P&I are $3,890.00 and we are having a hard time paying this so i went on the FHA website and found a number on there and called and spoke to a guy that say he can try to get us an FHA loan and that he can try to speak to countrywide to see if they will accept less than what is owed so that my loan can be around 420,000 instead of 590,000 depending on the appraisal and what countrywide will accept he said it's called a short refi.Is this for reals or is he giving me false hope?Supposedly if this were to happen my payment can go down to about 2,600 a month!!!

01-08-2009, 10:21 AM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,685	Re: Short refinance Yes there is such a thing and it has been around for years......we are just hearing more about it with the programs such as the H4H coming out..............but the investor on the current loan would need to accept a short payoff...........which isn't that easy to do..... Good Luck! Keep us posted....... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

01-08-2009, 10:30 AM	#3 (permalink)
whatdidigetinto Senior Member Join Date: Apr 2008 Posts: 155	Re: Short refinance Thank you!i'll post after i meet with him on the 17th!

01-09-2009, 12:23 AM	#4 (permalink)
markmc2000 Senior Member Join Date: Nov 2008 Posts: 87	Re: Short refinance Hey there, Just want to point out that you may be giving up some legal benefits by re-financing if you original loan was non-recourse then you endup with a recourse loan. What this means is you could go from a situation where you could walk away without liability to a situation with liability for the balance. But news today out of the senate suggests that cram downs may be on the way for people in bankruptcy. I'm thinking that this could and should end up being the best long term solution to get out of this housing mess. Deal with reality and get people out of these huge mrotages so they have money to spend instead of paying $3500 a month in interest Mark

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