Short pay refinancing allows property owners in distress to refinance their loans with a new lender without paying the entire loan balance back. A short pay refinance is similar to a short sale, but allows the mortgagee to eliminate upside-down loan balances and keep their property with lower payments.
For property owners who have decent credit and steady income, but who have experienced a significant decline in the value of their homes resulting in an "upside down" mortgage balance are perfect candidates for this program.
If a property owner is upside down, the bank considers them a very high foreclosure risk. If the worst should happen and the property owners were foreclosed on, the bank would incur huge amounts of fees and further decline in the property value over time. For this reason, they are willing to negotiate to do anything they can to keep you out of foreclosure!
Upfront fees in a short pay refi are limited, because we know that you are already struggling with increased mortgage payments. As your loan officers, we do not get paid until your loan is successfully refinanced.
Katie Holmes Keller Williams Realty, 13400 Sabre Springs Pkwy.#100, San Diego, CA 92128, 858-335-5417
