Short Pay Refi
Understanding Short Pay Refinance
A Short Pay Refinance is both simple and complex; simple to grasp the idea, complex in its implimentation. Short Pay Refinanace starts with you owing more on your home than the current market value. Thus, you are "Short". Through a qaulified financial planner that specializes in helping you with your mortgage. They, in turn, then go to FHA HUD and qualify you for an FHA HUD loan at fair market value. This is the "pay" part of the Short Pay Refinance program. Then comes the difficult part. Your financial planner must approach your lender, with cash in hand from the FHA HUD program, again the "pay" from the Short Pay Refinance, and convince the current mortgage comapny to take less than your current loan amount. This process culminates into what is refered to as Short Pay Refinance. This will result in little or no effect to your credit. You need to be up-to-date on your mortgage, but you could lower your principal by up to half of your current balance.
With the current economic situation, this has become a new and powerful way to help struggling homeowners keep their homes from foreclosure or short sale.