Saturday, October 4, 2008


A short refinance occurs when a mortgage lender agrees to accept a reduce payoff balance that is short a full payoff amount. Lenders typically forgive the remainder and issue a 1099 for the forgiveness of debt. President Bush signed the Mortgage Debt Relief Act of 2007 that enables homeowners to write off the 1099 for qualified principal reisdences. That is all well and good so to speak, but in reality, how offer is the FHA Short Refinance utilized? You will be pleased to learn that, moving forward, and as a result of the monstrous $700 billion emergency bill passed by Congress yesterday, the FHA Short Refinance will be more and more popular. This article will detail some of the reasons why the FHA Short Refinance will be more readily available and how you can benefit by obtaining your FHA Short Refinance.

Much to do was made about the FHASecure program last year. Finally, some industry insiders explained, the government would provide an opportunity to refinance loans under the FHA loan program. This, as pundits excitedly exclaimed, would allow lenders to provide short payoffs and finance the new mortgage through and FHA refinance. The second mortgage lender could subordinate - all is well! As it turned out, the FHASecure program did not live up to the expectations. You will hear different stories on the relative success of the FHASecure program, but essentially what has happened is that mortgage lenders have used the FHASecure program as a means of charging borrowers and loan originators alike more fees and a higher loan rate whenever a borrower refinanced from a conventional loan to an FHA loan. That is why, my friends, you wil hear that the FHASecure program has funded so many loan. It is NOT becuase it has 'saved' borrowers from foreclosure but rather it is because FHA lenders have used it as a way to profit from unsuspecting borrowers in this housing crisis.

Myth #2 is that lenders want to provide a short payoff to borrowers to facilitate an FHA short refinance. In a sense, this can be true, however, for the vast majority of instances whereby the FHA lender permits a borrower to refinance at a reduced or short payoff, it is when the borrower has missed severeal payments and generally does not qualify for an FHA short refinance. So where does that leave us with the FHA Short Refinance? Not in such good of shape so far. Hold onto your hat. Here is some welcomed news in the next paragraph.

Enter the $700 billion dollar bailout that was preceded by the $300 bailout. The national debt now exceeds $10 trillion dollars. That's $10,000,000,000,000.00 that the taxpayers are supposed to pay back at some time. I wonder what the USA FICO score is right now? I would guess it's somehwere areound a 611 or so. OK, all kidding aside, here is how the FHA short refinance will work for you. The governement will be buying MBS from banks. This is what is referred to as toxic loans. I think I saw Treasury Secretary hold up a 'vial' of the toxix mortgage assets to show Congress last week. LOL I'm on a roll now. OK, wasn't that funny. Next paragraph will explain how the FHA Short Refinance wil provide your solution.

It works like this. The government buys the MBS from banks and then the government allows your loan to refinance through the Hope For Homeowners program. This means the government takes the loss on the short payoff and then permits the loan to be refinanced into the fha short refinance.

How will you know if you loan is taken over by the government? Check back for the next article on the FHA short Refinance to get the answer to that and much more.

Saturday, September 27, 2008


The most profound comment on the FHA Short Refinance came from Federal Reserve Board Chairman Ben Bernanke said it best:

"With low or negative equity... a stressed borrower has less ability
(because there is no home equity to tap) and less financial incentive to try to
remain in the home. In this environment, principal reductions that restore some
equity for the homeowner may be a relatively more effective means of avoiding
delinquency and foreclosure."

This is what the FHA short refinance is all about. Learn about this fha refinance program and the reduced (short) payoff that accompanies the loan. We hope to report more on the FHA refinance program at a future date.


Thursday, September 25, 2008

Short the Payoff on an FHA Refinance

With property values declining in most parts of the country and lending tightening, we are arguably in a difficult mortgage lending period and one that affects fha refinacining to a high degree. This causes many FHA refinances to be short funds to pay off the present mortgage balance. This is called a short refinance through FHA and is popular among FHA enthusiasts and particularly among the FHA borrowers who are short mortgage funds to close on the new refinance.

The FHA Housing Bill is intended to spur FHA short refinances into action. The primary problem with this is the fact that the FHA refinance program is a voluntary and the lenders who have mortgage loan balances will not be quick to short the payoff funds. Tall or short there is a dilemma. The main focus of short borrowers has less to do with their height and more to do with the refinances of the mortgage debt that is a lien on the property.

Ask a mortgage lender nicely to short the payoff and you may obtain an FHA refinance. You will be required to provide documentation for the short refinance through FHA. This is a catch 22 equation. On the one side, you must qualify for the FHA short refinance with the originating lender. On the other side, you must have a need for a short refinance. If you are a tall person and make a lot of money, then you will prbably not be able to qualify for the short refinance. Not because of your height, that has nothing to do with it. It is the fact that you are requesting the lender to take a loss when they short and a person who makes much money will be paying the loan off in full over time. A loan that is paid off in full is better for a lender FHA than a loan that is an FHA short refinance any day of the week.

More on the FHA short refinance at a later day. Thank you for your time.

Saturday, September 20, 2008

Mortgage Websites and Mortgage Domains

Let's take a moment out of our busy day to inspect mortgage websites and lender domain names that have to do with loans. Loans are a topic of interest recently as many people buy and sell items involving credit or lending. The loans are a form of lending that may involve a credit related website.

Your mortgage loan website should contain a mortgage domain name that suits your persona. What is your name? Is that your firt name? Do you have a website for mortgages containing a domain name with your real name. Let me give you a for instance.

The above are some examples of mortgage websites and mortgage domains. You can determine whether the mortgage domain names that are selected are appropriate. One would hope, for example, that an individual with would have some relation to a Sandra and would also have something to do with lending or loans.
In conclusion, your name may not be on the list above and your domain name intuitively would be missing from the above list. However, if you are in lending and you have a first name, then check to see that your mortgage website is on this list of mortgage domains and mortgage websites.

Thursday, September 11, 2008

Florida Short Sale Bring Discounts...But Do They Take Too Long?

Florida short sales may sound attractive to Florida home buyers these days but they can also be a trap if not researched correctly. Many real estate agents advertise short sales in Florida at extremely low prices with relation to the mortgage debt owed. This can be helpful to a buyer. It can also be a trap. Let me explain.

When the Florida short sale is listed for a price that is 'subject to lender approval', the short sale price may look great, but bear in mind the short sale lender must approve the short sale for it to close. Many real estate agents and sellers alike list short sales in Florida for a much reduced price and do not obtain the lenders approval for this price. Furthermore, when a short sale buyer writes a contract to purchase the Florida short sale, then the waiting game begins.

Avoiding the Florida deficiency judgment in a short sale is always helpful. There will be future articles regarding the deficiecny judgments in Floirda mortgage loans that foreclose.

These are just a few of the concerns to keep in mind when dealing with Florida short sales. The best type of Florida short sales are the ones that have been approved by the short sale lender in advance. These are short sales in Florida that can close quickly.

Florida Short Sales Approved or Preapproved Short Sale