Short Refinance Success Stories

[davakrikev]

I was wondering if anyone has any short refinance stories. I haven't read of any. We are in the process of having a short refinance completed with Select Portfolio Servicing. We were told by our loan modification company 2-1/2 weeks ago that SPS had approved it. We have already been approved for a new 30 yr. FHA mortgage for the current appraised value of the house and are now waiting for the paperwork to be finalized by SPS so the loan can close. Of course we won't believe it until it actually happens and we're nervous because we haven't seen it yet. Our situation is kind of unique in that we've never missed or been late on a payment. I was laid off back in March 09, so we have a hardship condition but have continued making the on-time monthly payments primarily from our savings. We were able to get approved for the new 30 yr. FHA loan (barely) based on my wifes good income as an RN and our credit is good. Our debt ratio is kind of high but thankfully we were able to qualify. So we met all of the main criteria. In addition, our existing loan is an interest only ARM and we're approx. $332k underwater. We were told by the loan mod. company that banks now want to get these bad loans off of their books. They are realizing these mortgage notes are just worthless paper. The short refinance is a win-win for us and the bank. It allows us to stay in the house and the bank maximizes its profit vs a short sale or foreclosure. The scary thing is I'm not seeing much discussion, examples of others trying this process or success stories. We sure hope it goes through not only for us but as a precedent for others in similar situations. If we are successful I'd like to share all of our information i.e. how we started, the original denial from negotiating with SPS myself, discovery of the loan mod. specialist who was able to help us etc.

Thanks

[Sunbeam]

Congratulations! Sounds like you have a lender/servicer with something other than sawdust between their ears! They made a sound financial decision that helps you! My saga took ten months....oh well, it was only time and stress...

[emc0317]

Congratulations in advance! I tried about few months ago, I got a new bank to refinance however as they did before with my modification, they denied it because of PMI. Hopefully you'll get, so congrats!

[MyHAMP]

Yep, SPS can be helpful....let's see what they do with our HAMP..

[davakrikev]

Originally Posted by emc0317

Congratulations in advance! I tried about few months ago, I got a new bank to refinance however as they did before with my modification, they denied it because of PMI. Hopefully you'll get, so congrats!

We just got notification from our loan mod specialist today that our loan has PMI and the pmi company will need to approve it before the bank will finalize the deal. I re-read your post and now I'm really nervous this isn't going to be approved. The bank wants us to resubmit pay stubs, W2's, recent statements for any 401k's, information on income, assets and debt. Is the pmi approval going to be a deal killer?

[emc0317]

Originally Posted by davakrikev

We just got notification from our loan mod specialist today that our loan has PMI and the pmi company will need to approve it before the bank will finalize the deal. I re-read your post and now I'm really nervous this isn't going to be approved. The bank wants us to resubmit pay stubs, W2's, recent statements for any 401k's, information on income, assets and debt. Is the pmi approval going to be a deal killer?

Unfornately yes but still it depends on which is more money saver for them, just keep on trying and have multiple plans backup. More Power!