"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.
FHA REFINANCES OF SHORT PAYOFFS