I’ve written an article on short-refi’s, and I hope to have updates of FHA short refi programs for you in the future.  From what I’ve heard you can apply for a short refi before a loan modification, and then your plan is to get pre-approved through FHA with another lender, and around the same time get a principle reduction as part of a 2 step process.
This gets you out of your own loan and into another loan that you’ll have to guarantee.  Please call one of our agents
and I’ll have them put you in touch with a short refi expert.

A short refi is a concept that a home owner does in the beginning when they are first find themselves late on payments and they are looking for a principle reduction.  This concept can be like a loan modification except it’s more designed for a principle reduction.  It’s like a short sale in that way except you would stay and continue to live in the property.  Short-refi’s are not yet that popular, and I find that some people haven’t heard of them.  It will involve approval of the principle reduction and approval of the loan for the next lender.

Most of you have heard the news from Obama as it relates to companies, and services that can help you with your home solution in this current economy. Chances are you took out a mortgage, or home loan a few years ago with your bank and now you are afraid that you may have bad credit, or owe too much on your house, now that housing prices have gone down.
Federal laws have come out with some great loan modification programs, and now you are hearing about, and you are wondering how to make sense of all of this and what are the qualifications.

Most loan modification programs will not allow for a principle reduction.  If you are looking for an upside down mortgage solution, then a short-refi may be better for you.  My research shows that GMAC, Wells Fargo and Countrywide are widely searched as it relates to lenders. If you want to sell instead of stay in your house, a short sale may be a better solution.

The short refinance process usually takes 120 days or less to complete. This is not like
your standard refinance process on your mortgage. The lenders have to take what’s called a short payoff, or short pay refinance, it’s a unique program, just now becoming popular. With the short pay of the mortgage you’ll want to check with your tax accountant, it’s likely that the lender and IRS will deem this as a discharged debt, and you may owe taxes on it.
The company I am affiliated with will handle the negotiation. Typically a new bpo is ordered, this is a broker’s price opinion.  This is done to ensure what the current market value is of the property. The buyer gets qualifying for the new loan amount with the current lender or a new lender through FHA.  Through the FHA, homeowners are able to qualify for low fixed interest rates and high LTV (loan-to-value ratios on their mortgages)

The homeowner must be able to afford the new loan and qualify showing:
tax returns, w-2’s, 1099’s, check stubs and bank statements, a full documentation loan. The current program is for those not yet in foreclosure. If foreclosure has been filed already, contact us and we’ll look at the loan modification or short sale solution for you. The costs to the seller are only around $224 upfront. You keep ownership of the property the whole time and stay in your house. You don’t have to be behind in payments like most loan modifications. Prior credit histories such as bankruptcy and foreclosure don’t matter. Debt to income can be as high as 45% when qualifying.

Documents you’ll soon need for qualifying:
(Info needed for anyone to be put on the loan)
-Last 2 years of W-2’s
-Last 2 years of tax returns
-Check stubs for the past 30 days
-Bank statements covering the past 60 days-all pages from the statement
-Most recent statement(s) for investment accounts: IRA’s, CDs, Money Market accounts, Pensions
-Your mortgage statement(s)
-A copy of your homeowners insurance policy
-Copies of your ID and Social Security Card

Please go to http://www.ronorr.com to learn more and to contact me
ron@minnesotainvestors.com

Please go here for more information on loan modifications