| 2010 will be known as the year that everything | | | | lender to get them to agree to a short payoff. |
| changed for the Real Estate market. Waiting for | | | | Not just anyone will qualify for this, of course, as |
| this to happen has taken some considerable time | | | | we will need to demonstrate a need based upon |
| and patience but now that it is here it's time to | | | | some level of hardship. It's important that this |
| take advantage of this situation. It has been | | | | short payoff include both the first and the second |
| talked about many times over, proposed in many | | | | mortgages and have a loan to value of |
| forms but now the Short Refinance makes it | | | | approximately 95% of current appraised value. |
| possible to exchange an upside down mortgage | | | | 3. To even qualify for the take out mortgage you |
| into a right side up one! | | | | cannot miss any mortgage payments. In other |
| Previously people had heard that a short refinance | | | | words, the refinance loan requires no missed |
| was possible but couldn't find a way to get it | | | | payments so negotiating for a short payoff with |
| done. In 2010 the short refinance will become | | | | missed payments will only result in a potential |
| possible thanks to a new set of criteria handed | | | | short sale NOT a short refinance. The new |
| down from above allowing this to all come | | | | refinanced loan will be a traditional FHA loan so the |
| together. | | | | FHA guidelines do apply. |
| Here are some of the steps in the process: | | | | Understanding the process and managing your |
| 1. The initial evaluation will need to demonstrate a | | | | expectation during this process will not only keep |
| need. This need will have to be income related so | | | | you sane but will keep those helping you sane as |
| it is important to understand your debt to income | | | | well. My best advice is to assume it won't happen |
| ratios as it relates to your existing loan and your | | | | and if it does BONUS! |
| potential new refinance. There is a window of | | | | Short sales can also be done in this manner as |
| opportunity there that people need to squeeze | | | | you can sell your home for less than what you |
| into in order to qualify. | | | | owe and then turn around and buy another home |
| 2. We will need to negotiate with your existing | | | | without an issue. |