Cimpler Real Estate dba LenderBackDoor

Short Refinance (Replacement of Existing Loan with New Loan)

Homeowners secure a new loan based on current appraised value (which would be lower), and negotiate with their current lender to accept less than the full balance owed (the short).

The Homeowner Recovery Act of 2008, a new law as of October 1, 2008 is an attempt by the government to provide incentives to lenders to increase the likelihood of them using this loss mitigation strategy. Lenders would provide loans for owners that would like to refinance, and can qualify based on income, but would be rejected because of their low credit (FICO) score or low home value. This program would allow homeowners to replace (in some cases restructure) their mortgage at 90% of the newly appraised value, resulting in instant equity, and preventing more walk-aways.

To discuss your options, please contact us.