Nationalstandardfinancial's Blog

Short Refinance / Short Pay Refinance Commonly Asked Questions

nationalstandardfinancial — Fri, 14 Aug 2009 16:34:53 +0000

A short-refi, short refinance, or also known as a short-payoff refinance, is a transaction, where the current lender agrees to accept less than the full amount owed on your property. This process is similar to a short sale but, instead of the property being sold, it is refinanced with a new lender. The short-refinance allows the homeowner to retain ownership of the property, while at the same time avoiding a foreclosure or possible bankruptcy and best of all wiping out negative equity!

Q. What is loss mitigation?

A. It is the process of working out a permanent, equitable, and fair solution between you and your lender that eliminates or reduces current debt you have incurred from a bad mortgage.

Q. What is a short refinance or a short payoff?

A. A Short Refinance happens when your current lender allows you to write down the balance you owe on your mortgage. The current lender issues a payoff for an amount less than what the current loan balance is. The decreased payoff is reached through our negotiations with your current lender. With that payoff, we obtain a refinance for you with a new lender at the decreased loan amount.

Q. How can a short refinance help?

A. A Short Refinance or Short Pay Refinance can assist a home owner who owes more on their home than what it is currently worth. If you are not sure if you fall in this category, contact the phone number at the bottom of this page and we can walk you through the process.

Q. Must I be able to qualify for the new loan?

A. Yes, This process includes two dynamics that must take place. 1. The current lender must be willing to negotiate for the shorted payoff and 2. You must be able to qualify for the new loan.

Q. Do I need to be late on my mortgage to qualify for a short refinance or short payoff?

A. We would never recommend you being late on any of your credit obligations. Anyone that tells you to be late is risking your chances of qualifying for the new loan and risking your credit. If your lender or servicing company tells you that they won’t help unless you are late, take their name and extension and ask to speak to a supervisor. It shouldn’t matter that you are late if you can show a hardship or significant change in financial circumstance. Most people that call us don’t want to ruin their credit and being late completely negates that goal.

Q. I tried this, but my lender won’t budge. Can you still help me.

A. Yes. We have noticed that most lenders act this way until we get involved. We know how to get the bank to settle on fair terms. We know who to talk to and what to say. We will use our connections and experience to get you the best possible solution.

Q. How Much Time Do I Have?

A. In this process, time is your enemy! The sooner you act the better a solution we can achieve. We have encountered many homeowners that didn’t realize they could fix their current situation until it was too late. DO NOT DELAY!

Q. When does National Standard Financial begin the loan mitigation process?

A. Once you have fully retained our services, your lender will be notified immediately and we will begin the mitigation process. We do not accept advance fees as we only collect fees once work has been performed.

Q. Why should I use National Standard Financial to mitigate my loan instead of doing it myself?

A. Our team has extensive experience in negotiating loans and working with lenders. We have an impeccable relationship with lenders, who are usually unwavering in negotiating with the consumer directly. Our team has extensive knowledge about loan mitigation, modification, short refinance and short sale programs.

Q. How Long Does This Take?

A. Once we get the paperwork, we begin right away. Currently, most lenders are very busy, so we are noticing about 30-120 days before a final settlement is reached.

Example of a Short Refinance / Short Pay Refinance

Example of a Short Refinance / Short Pay Refinance
Current First Mortgage:	$300,000
Current Appraised Value:	$150,000
New Loan Amount after negotiating with lender:	$135,000
Current Lender Erases Principal Amount of:	$165,000
New Monthly Payment on a 30Yr Fixed Loan at 6%:	$809.39

National Standard Financial

Esplanade I – 2425 E. Camelback Rd. Suite 950 Phoenix, AZ 85016

1-800-650-1144 (Toll Free)

Short Refinance; National Standard Financial’s Solution To The Mortgage Crisis

nationalstandardfinancial — Mon, 10 Aug 2009 20:04:29 +0000

With the increase of distressed mortgage loans around the country, most banks are now offering a variety of loan modification options. Many banks are even allowing for applications of “Short Refinances” or “Short Pay Offs” which will allow you to get a new loan for less than what you may owe and the bank can forgive the difference. This process can be daunting due to the plethora of questions and documents that the bank will usually require and with most banks, may only be done once in the life time of your loan. We have helped hundreds of families keep their home and have an affordable payment to insure their future success.

Short Refinance/Loan Reconstruction:

In today’s volatile housing market, many homeowners are unable to refinance their home due an unfavorable equity position leaving them helpless and without options. Through skilled negotiations, we will work with the lenders to get the principal balance reduced in order to refinance your home at current market value. We can negotiate with your lender when you are in default, foreclosure or even if you are current on your mortgage but your house is worth less than you owe to the bank.

Many of the banks would prefer to “short refi” the property rather than to foreclose so that they may offset the costs involved in foreclosure, such as the legal fees, carrying costs, eviction, etc. Call now for an immediate free consultation and let us relieve the financial pressure that your home may be encumbering you with.

Brought to you by: National Standard Financial

1-800-650-1144

Short Refinance as a Solutions for Homeowners Upside Down in They’re Mortgage

nationalstandardfinancial — Mon, 10 Aug 2009 19:50:17 +0000

The Short Refinance Solution
This solution is our most powerful tool in mortgage negotiation. “Short Sale” has become a well known solution to avoid foreclosure but “Short Refinance” is the most effective option available to help families lower payments, retain their homes, and eliminate upside down equity in their homes! By working with us you put 7 years of negative equity negotiating to work for you!

What Exactly is a Short Refinance?
A short-refi, short refinance, or also known as a short-payoff, is a transaction, where the current lender agrees to accept less than the full amount owed on your property. This process is similar to a short sale but, instead of the property being sold, it is refinanced with a new lender. The short-refinance allows the homeowner to retain ownership of the property, while at the same time avoiding a foreclosure or possible bankruptcy and best of all wiping out negative equity!

Brought to you by: National Standard Financial

1-800-650-1144

Short Refinance; Say Goodbye To Your Negative Equity and Say Hello To A New Mortgage

nationalstandardfinancial — Mon, 10 Aug 2009 19:23:24 +0000

The Southwestern United States is one of the hardest hit housing markets in the country. Many homeowners have an upside down mortgage or negative equity position in their home. For some the only choice is to let the home go into foreclosure. Whole neighborhoods are going vacant, and homeowners are finding that even though they have been making their payments their house is worth significantly less than the current mortgage balance. Even with interest rates coming down to historic levels, these homeowners cannot take advantage today’s available low rates due to an unfavorable equity position in their homes.

The newest tool for homeowners is a Short Refinance. A short refinance is a loan where the old lender agrees to waive part of the balance in order for the new loan to get approved. You may be thinking: Why would my current lender agree to forgive part of my balance for me to get a new loan

The answer: The Short refinance offers the old bank more money than a short sale or a foreclosure. For the homeowner, this can be a double win situation. A lower balance on a new 30 year fixed and, an opportunity to save hundreds of dollars a month in payments!

To obtain a Short Refinance or more information contact National Standard Financial at 1-800-650-1144 or visit us online at www.nationalstandardfinancial.com

Brought to you by: National Standard Financial