FHA Short Refinance Program Helps Upside-Down Homeowners

Bills.com Team
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By Bills.com Team
March 14, 2011

Highlights


  • The FHA Short Refinance Program allows homeowners with negative equity to refinance.
  • The program slashes principal from mortgages on upside-down property.
  • Congress is threatening to remove funding for the program.
4.0
/5.0
(13 Votes)

FHA Short Refinance Program Catching on With Lenders, Borrowers

Six months after the FHA announced its Short Refinance plan, it appears the program is developing traction among 23 lenders willing to follow its guidelines. The New York Times reported in mid March 2011 the following five lenders had restructured 44 loans:

  • Wall Street Mortgage Bankers, Lake Success, NY.
  • 1st Alliance Lending, East Hartford, CT
  • Nationstar Mortgage, Lewisville, TX
  • E Mortgage Management, Haddon Township, NJ
  • Glacier Bank, Kalispell, MT

The FHA has a complete list of FHA qualified lenders, although not all are participating the short refinance program. Notable non-participants in the FHA program are Bank of America, Citibank and JPMorgan Chase. The Times quoted a Bank of America spokesman, who said, "Without the participation of Fannie Mae and Freddie Mac, we don’t believe the program can help a significant number of our borrowers." Wells Fargo and Ally Financial (parent company of G.M.A.C. and Ditech), said they created test programs for the FHA option, and are studying the results.

The Times quoted a Citibank spokesperson who said the bank was “participating in a third-party pilot program along the same lines as the F.H.A. Short Refi program,” but did not provide details.

John Diiorio, the owner of 1st Alliance Lending, said big banks were taking part behind the scenes, by referring homeowners to third-party lenders that could restructure their mortgages. He said 1st Alliance had “several hundred FHA Short Refi” loans in the pipeline.

Because the FHA announced the program in September 2010, and because such loans take three to four months from start to finish, Diiorio said the number of refinanced loans should increase in coming months. He said that, on average, 1st Alliance had negotiated a principal reduction of $86,000 on a $256,000 loan, a 33.5% cut, to $170,000. He said lenders and investors had agreed to reduce principal for only half of the loans 1st Alliance Lending worked on. Diiorio said borrowers pay a slightly higher fixed rate, typically 6% or so, but the financial impact was the same as a 5% rate on a higher-balance loan.

HUD estimated that 500,000 to 1.5 million borrowers could be eligible for the program. Even so, it faces challenges in Congress. In early March 2011 the House of Representatives voted to end it.

Bills.com’s Take on the FHA Short Refinance Program

Under the FHA Short Refinance program, a lender reduces the principal balance on the mortgage. The reduced-balance loan then passes from the private hands of the lender or investor that owns the loan to a loan that is guaranteed by the federal government. Previous government programs attempted to aid those who are behind on their mortgage payments. The FHA Short Refinance Program is targeted to borrowers who are current and can afford their payments, borrowers who could not qualify for the different loan modification programs available.

If you are upside-down or underwater on your mortgage and want to refinance, the FHA Short Refinance Program is a great way to knock-down your principal and pay less in your monthly mortgage payments. Congress is considering cutting the program, so if Fannie Mae or Freddie Mac are not your mortgage investor, call your mortgage servicer to learn if it is participating in the FHA Short Refinance Program. Or, contact one of the lenders mentioned at the top of this article.

4.0
/5.0
(13 Votes)

62 Comments

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  • 35x35
    Apr, 2013
    AZ
    I live in Arizona and have a conventional mortgage with BoA and a HLOC with Chase. Never late on payment and have good credit. Would I qualify for the FHA Short Refinance or PRA? If it turned out BoA does not participate in the FHA Short Refinance could I go else where?
    0 Votes

    • 35x35
      Apr, 2013
      Bill
      You can speak to another lender about the FHA Short Refinance program, however, the first lien holder, BoA, would need to agree to a Principal Reduction of at least 10% of the unpaid principal balance. Check with BoA to see if you are eligible for that program. You might want to see if you are eligible for other refinance programs, such as the HARP 2 refinance loan.
      0 Votes

  • 35x35
    Sep, 2012
    Nancy
    Confused! I had a person from American Certified contact me and state that I was eligible for a P.R.A. reduction. Of course they asked for $ to help with the paperwork. My mortgage is through Wells Fargo and is a FHA mortgage, Wells Fargo states if I am FHA that I do not qualify for a P.R.A. reduction. Mike from American Certified says Wells Fargo is not being honest. Can you tell me if FHA is participating in the P.R.A. reduction program?
    0 Votes

    • 35x35
      Sep, 2012
      Bill
      PRA is short for Principal Reduction Alternative, a HAMP-related plan promoted by the federal Dept. of Treasury and Dept. of Housing and Urban Development. According to the Making Home Affordable PRA Web page, more than 100 mortgage servicers participate in PRA, including Bank of America, CitiMortgage, JP Morgan Chase, and Wells Fargo.

      I see no bar to FHA-insured loans in PRA or HAMP. To the contrary, the FHA publishes a Web page discussing HAMP eligibility.

      Fannie Mae and Freddie Mac loans are not eligible for PRA.

      My advice? Talk to Wells Fargo again and ask if you qualify for PRA. Please return here and share what you learn.
      0 Votes

  • 35x35
    Aug, 2012
    Gregg
    I closed on my Chase mortgage in May 2009, but my mortgage was not acquired by Fannie Mae until Aug 2009 (missed HARP deadline) I am at 100% LTV right now on 200k, and do not want to pay PMI (don't pay now - have been in house for 17 years.)What are my options? - Have not been late on mortgage. Credit rating of 760+ (current mortgage is 20 yr - want to go to 30 yr with no pre-payment penalty to help with current economic downturn. Both of us are employed)
    0 Votes

    • 35x35
      Aug, 2012
      Bill
      I am not aware of any loan program that can meet your goals to refinance, given your LTV, desire to avoid PMI, and the fact that you do not meet the basic HARP requirements.
      0 Votes

    • 35x35
      Nov, 2012
      Lost Seattle
      Same as above except refi'd last year (Washington St). Decided to lower payments more by downsizing to a smaller house (didn't lie about anything on loan app and used the FHA owner occupied 203k loan...great credit and income) to lower my payments as I was told by multiple realtors that I could easily sell my house for what I owe on it with fees factored. Now, I'm supposed to move into my new house within 30 days b/c 203k remodel is done and also live there at least one year, but my current house isn't selling even with 20 people looking at it in the past 6 months. I don't want to go upside down selling my current house as money is tight b/c my income at my longtime job took a hit. I think if there were no fees it would sell if that matters. I cannot sell the new house or I'm a "flipper" I'm reading everywhere. I wonder if that is an option as it would seem to solve everything as I KNOW I can sell it and actually make money even though I only bought it 4 months ago. My intention was always to live there, but now I can't sell my current house for what I owe, so not sure if that makes it okay just to list it at a fair but profitable price and sell it right away. I would go $50k below Zillow or more and still make money. If it would make sense to goa certain route then I'm fine with my 780 credit score getting hit. 1. Selling new house okay even though I used the 3.5% down 203k loan which requires the 1 year occupation...or intent maybe only needed? 2. Foreclose old house b/c have primary and car, so no credit need? Seems excessive kind of to me tho. 3. Short/DIL, but why would they say okay when I'M the one that the bought the new house and put myself in this mess and I have $40k in my 401k too. Job income changed hardship I can argue and have lowered my price over and over to get more buyers looking. 4. Any type of refi that keeps the MI off the payment so I can use the lower rates. The savings are the MI payment so doesn't seem to make sense. Any advice would be appreciated. I'm hoping I can just sell the new house, but if somehow getting out of my current house is an option that would be a huge weight off my back.
      0 Votes

    • 35x35
      Dec, 2012
      Bill
      I suggest that you speak with your lender. The FHA recently extended the anti-flipper waiver rule. There are certain limitations on the type of transaction, including an arm's-length restriction. Check with the lender and see if you can sell the new house, even if you haven't lived there.
      0 Votes

  • 35x35
    Apr, 2012
    D
    Just got off the phone with Wells Fargo. They told me they are NOT participating in the FHA Short Refinance Program. I told them very plainly that if they don't help me re-negotiate my loan I will be pursuing strategic foreclosure. They told me there was nothing they could do to help me. The property in question is a condo in Orlando bought in 2006 for $250,000, now valued at ~$100,000. Balance on mortgage is ~$200,000.
    0 Votes

    • 35x35
      May, 2012
      D
      Hi, I called Wells moments ago as they are my lender. They are now participating. Please call again.
      0 Votes

    • 35x35
      May, 2012
      Bill
      Did Wells Fargo indicate to you that they are willing to reduce your principal balance by at least 10%?
      0 Votes

    • 35x35
      Jun, 2012
      Rebecca
      I just got off the phone with them today and Wells says they are not participating. Why would they?
      0 Votes

  • 35x35
    Feb, 2012
    Victoria
    I am hoping you get to answer these questions... My House has been on the Market for almost 8 Months now as a Short Sale. I tried to refinance Multiple times without any luck through my current lender "Citi". I have a 6.5% Interest rate on a $340K Home. I have just been given an extension until June 12th to sell the house or except a DIL. My Grandmother also is a signer on my mortgage. However this is not and has never been her primary residence. How can I get her off of the Deed so I stop hurting her credit. Also would they be able to go after her primary residence since it is paid off? With the New Obama changes to the mortgage industry; What could I do to keep my house? I am unable to pay my Monthly mortgage of almost $3k per month without lowering my monthly payment. Any Suggestions?
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      It is your grandmother's presence on the mortgage loan that is hurting her credit. It also makes her financially responsible for the debt. Depending on the anti-deficiency laws in your state, you and she could be on the hook for any balance that remains on the debt after the house is sold. It also depends on what you work out with the lender, as the lender can forgive the deficiency balance.

      How her home would be affected also depends on the homestead exemption that exists in the state where her home is located.

      The Obama refinance plan is only a proposal, at this point, so it does not offer a solution to keeping your home. Did you try working with your lender to modify your loan or see of you qualify for the HAMP program? That seems to be one route to investigate.
      0 Votes

  • 35x35
    Feb, 2012
    crytstal
    Well thats just great I have a FHA and again no help, as citimorgageis not participating, no suprise why should they when the governments just going to hand them my morgage balance when I default.
    2 Votes

  • 35x35
    Feb, 2012
    M
    We have a mortgage with Wells Fargo and have more than enough income to cover our payments. Problem - we missed 2 payments a while back and they filed foreclosure proceedings. Been trying to work it out with them - they asked for a downpayment for the remod which I happily sent thinking that would be the end of it and we'd get back to normal. Nope. They cashed the moneyorder but didn't apply it anywhere to benefit us. Every time it goes to the underwriters it gets shifted to a different department and the process started over, and now this last underwriters (after over a year of hell) and they are now asking for a "guarantee of income letter for the next 3 years." Who the heck has that kind of security? And now we have a sale date of less than one month away now. I am sick over this - literally. I can honestly say I never want to own a home again. I'm going to buy one of those big RVs outright and move it to where ever I want to be! This is stupid. I will never ever deal with Wells Fargo again.
    0 Votes

    • 35x35
      Feb, 2012
      Bill
      If you have had payments made that are not accountable for, and you are in foreclosure, then you should consider speaking to a lawyer, who can verify that the procedure has been done correctly.
      0 Votes

    • 35x35
      Oct, 2012
      Sandra
      M.E., I feel your pain! I went round and round with BofA only to have them FINALLY, after FOUR YEARS, take the 26 years left on my 30 year mortgage and jack it up to a 40 YEAR mortgage at the same interest rate!!! Bottom line, I saved my house and got the modification, but it should be criminal what they have done!! They added $14,000 to my balance and extended my repayment 14 YEARS -- all for two payments missed while I was unemployed in 2007!! I filed my first application in May 2008. I FINALLY GOT REFI PAPERWORK IN AUGUST 2012 -- after paying $3,500 to a refi negotiation firm! Biggest ripoff in American history!
      0 Votes

  • 35x35
    Jan, 2012
    Angry
    JPMORTGAGE CHASE NOT PARTICIPATING...big surprise...why would they do anything to help borrowers who are stuck in ARM lower their payments? Why would our loan officer tell us that "Refinance appraisals always come back lower" than a new purchase appraisal...of course they do...why would the bank who owns the loan happily accept LESS money from its customers? DO NOT USE CHASE...DO NOT USE BoFA....do not trust your realtor...do not trust your lender...they only see dollar signs when they see your pearly whites smiling at your dream home!
    2 Votes

  • 35x35
    Dec, 2011
    Earl
    Hello, we currently owe 146k on a townhome with a market value of 88k. Our mortgage is now owned by Boa and I have been reading that they don't participate in the short refi program. Are the any options we have? Is this true about Boa? What should we do?
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      The Bank of America participates in a number of Making Home Affordable programs, including HAMP and HARP. Some of these programs require the loan being guaranteed by Fannie Mae or Freddie Mac. I recommend that you read about the Bank of America short sell programs on their website page Bank of America loan assistance programs. Bank of America has government-based short sale programs, as well as traditional short sale programs.

      Before short selling your home, I recommend you consider all your options, and especially focus on what will happen with the deficiency balance. For more information, read this Bills.com article about short sales.
      0 Votes

  • 35x35
    Dec, 2011
    Lauratina
    My husband died two years ago and the house was bought before we were married. I have been keeping up with the payments but with extreme hardship. The Value is 50,000 less than the appraised value. Would this program work with my name not on the title? Has anyone had this problem?
    0 Votes

    • 35x35
      Dec, 2011
      Bill
      Common law, which is what most US state law is based on, has been dealing with real property issues for 300 years, so it is safe to assume there are no new or unique issues in real property. My words here are meant as a comfort, and a local lawyer who has experience in real property law will be able to advise you precisely.

      First, if you have not done so already, probate the decedent's estate. Doing so will clarify the title issue.

      Second, property's title is a separate issue from the home loan. Your name could be alone on the title, and the decedent's name could be on the mortgage with yours as a joint borrower, or the opposite could be true. You do not mention if your name is on the home loan as a joint borrower. If so, then you may apply for a mortgage modification. If your name is not mentioned on the home loan, then you will need to qualify for a mortgage.

      My advice? Consult with a lawyer who has real property or probate experience. A few minutes with a lawyer will help you map out a course of action.
      0 Votes

  • 35x35
    Oct, 2011
    crystal
    The bank (lawyers) have asked for the stay to be lifted off the house and considering it was never included in the bankrupcy, only as a loan owed, they are only recieving payments on what was behind at the time of filing.My bankruptcy lawyers have agreed to lift the stay, this is where the pay up in 6 month or forclosure
    0 Votes

  • 35x35
    Oct, 2011
    crystal
    I don't understand citibank We have been trying to modify our loan since 2009 when we were worried our jobs would end, we were told we were current and didn't quality. In 2010 when we did become unemployed and fell behind, they kept losing my modification applications. Then when we filed chapter 13 , they mysteriously lost our app again, finally in november 2010 they sent a modifacation @ the same interest rate and tacked on all the past due amounts and fees, causing my morgage payment to go up. I have recently learned that the house is underwater by 100thousand, and through the lawyers they still will not budge. They are giving me 6 months to catch up and get current or they are forclosing. WHY WON'T THEY LISTEN!!!! We are finally working but @ a considerable less income and current payments are well over 50% of our income..
    3 Votes

    • 35x35
      Oct, 2011
      Bill
      Your statement, "Then when we filed chapter 13..." gives me pause. Consult with your bankruptcy lawyer about Citibank's behavior, and if it is in compliance with what the bankruptcy court's orders.
      0 Votes

  • 35x35
    Oct, 2011
    Katrine
    I own a condo in Orlando, FL that I bought for $209,000 in 2007. It is currently valued at around $80,000, which is a HUGE hit. It's a really nice place. Problem is, I got a job in Portland, OR, so now I'm renting out the condo as well as renting a place in Oregon. My mortgage company is requiring me to refinance, but my mortgage amount is way more than what it's worth, so I feel stuck. I don't qualify for a short sale because I don't have financial hardship. Would I qualify for the FHA Short Refinance program?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      I do not understand your statement, "My mortgage company is requiring me to refinance..." No one can force a homeowner to refinance a home loan. If you feel your mortgage servicer is coercing you, by all means consult with a lawyer who has real property or contracts experience to assist you in these negotiations.

      If the servicer will not offer you a short sale, then consider a strategic default.
      0 Votes

  • 35x35
    Oct, 2011
    Gina
    "Catching on?" Really?! With only 301 of the millions of underwater borrowers helped? HUD spent $8 billion promoting this program, which is more than 26 million dollars per refinance! As a taxpayer I find this alarming.
    2 Votes

  • 35x35
    Oct, 2011
    julie
    we don't know what to do - have a condo (loft) in Tampa, but we live in another city because of work, so we are renting here. Mortgage on the condo is way higher than the current price - we are paying 414 000 but the condos in the building are currently selling for 290 000. Walking away doesn't sound great, drawning money in this black hole doesn't sound good either...
    0 Votes

  • 35x35
    Oct, 2011
    Michael
    Hello, I'm currently way under on my manufactured home mortgage (I owe ~$50K and the sell price is probably no more than $25K). Due to bad credit when my ex-wife and I bought the home, I've been paying 12.25% interest for the last ten years on a thirty year mortgage. I can afford the home and have never missed a payment, but my peers are telling me to just walk away. I've finally gotten my credit score back into the 700s and I know walking away will drop that way down for another 7 years. The thought of just walking away scares the hell out of me. One, because I feel morally obligated to pay for my mistakes and two, getting sued by the lending company for the amount owed after they sell the home. I'm ok with getting sued say for $30K and paying that off I guess. At least I can pay that off with little to no interest rate and pay it off quicker than 20 years. To be honest, I'm not sure what advice I'm looking for. Basically what are all the pros and cons of doing a strategic default and if there are any other alternatives for me. Thanks
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Your question shows that you are already considering the main negatives to a strategic default, where you choose to walk away from the property when you can afford to continue making the payments.

      As you stated, there is a moral component, where you would be walking away from an obligation you agreed to see through. You are also aware of the damage to your credit that allowing a foreclosure will cause. Lastly, you realize that you could be sued for the deficiency balance, if the lender auctions your home for less than you owe.

      You just have to decide what is most important. Here are some things for you to ponder:
      • Where would you move instead?
      • What would your new housing costs be?
      • Do you want to own a home again?
      • How long before you qualify for another mortgage?
      • What is the interest that your state allows a judgment-creditor to charge you after obtaining a judgment against you?

      There is no easy, one-size-fits-all answer to your question that fits every homeowner's situation.

      0 Votes

  • 35x35
    Oct, 2011
    Nick
    Here is a tough one. I own a house with my ex wife and we currently are trying to sell the home. We owe 205,000 on the house and have it listed for $217,500. The appraised value was $216,000 a year or two back. We have had zero looks or offers on the house and we both want out of it for obvious reasons. She keeps saying she wants to do a short sale but I feel as though that is just as bad as a foreclosure. What options do we have? We pay the mortgage on time every month, we've never been late but we know we will already be losing money on the house if someone comes in and doesnt give us full asking price.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      The market is telling you you priced the property too high.

      Weigh the pros and cons of short sale vs. a strategic default. You indicated you reside in Virginia. See the Bills.com resource Mortgage Foreclosure Virginia to learn about the potential deficiency balance issue.

      I realize I did not answer your question. That was intentional. In some instances, a short sale is a better choice for consumers because the contract offered by the mortgage servicer is fair to all parties. In other cases, a short sale is more costly in the short and long term than a foreclosure followed by a bankruptcy. As the old saying goes, the devil is in the details.
      0 Votes

  • 35x35
    Oct, 2011
    Keri
    I owe 98,000 on my house and it will sale for 80,000. Due to 3 break ins in 6 weeks we moved to a different location and rented it out. The renters have now be broken into and want out of the lease... Without the rental income we will be hard out paying two mortgages. What I was wondering is can I sale my house for what its worth and still pay on the remainder of the loan?
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      The answer to your question is yes. What you described is called a short sale.
      0 Votes

  • 35x35
    Oct, 2011
    dave
    We have a mortgage with (Town mortgage/fannie mae) and we owe $350k. We bought the house in 2005 for $460k and spent another $70k for upgrade. The appraised value now is $270k. We're planning on downgrading our house and buy a smaller one (under 250k). Which is better for us to do since we are underwater on our mortgage (about $80k): Deed in lieu or short sale? We paid our mortgage on time as of now. Thanks in advance.
    0 Votes

  • 35x35
    Oct, 2011
    Dave
    Wondering if there is a better alternative. I am about 119 LTV or about 19% underwater. My house is valued at $95K and I owe $113K. I am at 6% and in about a month will go to 5% using the FHA ref program. I have 798 credit rating and need to keep it for my job. What I would like to know if I can do better on rate?? I live in SE Michigan.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      Given the fact that most underwater borrowers are unable to find any refinancing options, even if they have strong credit like you do, I think that the offer you have may be as good as you can find. It does not hurt to shop around to see if you can find better, if you have the time.
      0 Votes

  • 35x35
    Sep, 2011
    Marta
    Hi. We have a mortgage with BoA and we owe $202k on the first mortgage and $59k on the second mortgage on a home in FL (the 2nd was sold to another company). Comparable houses in the area are selling for about $180k. We moved overseas in 2007 but still have the house as our primary residence since we own a business in the states that is seasonal. We have not made a mortgage payment in 9 months, or since Jan 2011.

    We now have a money coming in but do not know if we should try to keep the house or sell and move to a smaller property. So should we try to pay the some of the past mortgage payments or apply for a FHA Short Refinance to keep the house or ask for a short sale and move to a smaller property, or deed in lieu? Our credit was excellent 2 years ago, but now it is not so good.
    0 Votes

    • 35x35
      Oct, 2011
      Bill
      What you are really asking is, "My property is underwater. Should I strategically default?" See the Bills.com resource I just mentioned for a discussion of this issue.
      0 Votes

  • 35x35
    Aug, 2011
    Alvin
    Hi. I'm hoping I can get some help. I'm in a 5/1 ARM Loan and the house is about $200,000 underwater. I am not experiencing hardship and have been current with my payments. I've asked my lender if they participate in the FHA Short Refinance which they have said 'No'. What can homeowners do when the lender is not willing to help? Thanks
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      I understand that you may want to get out of your ARM, especially when rates are as low as they are now. Unfortunately, you don't have many options.

      You can consider a strategic defalut, where you choose to walk away from the home and mortgage, but there are serious consequences to that choice. The state in which you live makes a difference, as the lender has different rercourse depending on the state. You can speak with an attorney to discuss the strategic default option and its effects.

      You can choose to pay the mortgage and hope that property values rebound before you wish to sell the home.

      Other than that, your best hope is that Congress will take some action to address the problem, a problem that you share with many other Americans. I realize that being told that any hope you want is tied to Congress taking effective action is not something that instills optimism or hope.
      0 Votes

    • 35x35
      Aug, 2011
      Alvin
      Thank you for your response. I appreciate the information. We're praying that Congress will take actions to help homeowners like myself. Thank you.
      0 Votes

  • 35x35
    Aug, 2011
    Shawn
    Mortgage through IndyMac. Everyone told me to go behind 2 months before anyone would touch me. So now I am a month behind and owe $155,000. on a home worth approx 80k. Is this a deal breaker?
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      You have to be up-to-date on your mortgage payments to qualify for the FHA Short Refinance program. Even if you were caught up, your lender may not participate in that or be willing to write down your mortgage's principal balance to the level that is necessary for you to refinance.

      Maybe people were advising you to fall behind on your payments in order to get into a loan modification program. Contact whatever entity is servicing your mortgage and speak to them about a home loan modification.
      0 Votes

  • 35x35
    Aug, 2011
    Jared
    Our home was re mod through nationstar which ended up to be a huge joke. They added $16K on to our loan for doing the remod and penalizing fees for doing what they told us to do. Can we now qualify for the FHA short refinance? We bought our home for 212K and it is now worth 75K. We are current with our comical loan.
    0 Votes

    • 35x35
      Aug, 2011
      Bill
      What have you got to lose by applying for an FHA Short Refinance? Given the huge difference between the market price of your home and the loan balance, you have every incentive to apply. Consult with a lawyer who has experience in civil litigation or consumer law to learn if the mortgage lender or servicer operated in good faith.
      0 Votes

  • 35x35
    Aug, 2011
    Lisa
    Contacted GMAC's Loss Mitigation Dept. at 877 928 4622 and stated they do not participate in The FHA Short Refinance Program.
    1 Votes

  • 35x35
    Jul, 2011
    Matt
    If you get a FHA Short Refi can you get another loan within the year?
    0 Votes

    • 35x35
      Jul, 2011
      Bill
      FHA Short Refinance loans are only for properties that are underwater. There is nothing I know of that precludes your refinancing after doing an FHA Short Refi, but if you have little or no equity, you may not find a lender willing to offer you a mortgage.
      0 Votes

  • 35x35
    Jun, 2011
    Rusty
    Who are the 23 lenders that participate in the FHA Short Refi Program
    0 Votes

    • 35x35
      Jun, 2011
      Bill
      Please contact the FHA for the current list of short refinance lenders.
      0 Votes

    • 35x35
      Jun, 2011
      Rusty
      I am trying to find the list of conventional loan lenders/servicers that accept the short payoffs - I have called HUD they do not have the list of the 23 participants - I do know lenders that fund the new FHA loans. For example: I spoke to Chase today and they said they do not participate in the Principal Reduction of loans - but they will fund the New FHA Loans from other lenders that have written of principal. When is it going to come together?
      0 Votes

  • 35x35
    May, 2011
    James
    I just tried to refinance my house, I Owe $151,000 at 7.75%. everything was good until they told me my house is only worth about $120,000. I'm current on my payments but I'll take any help i can get.
    0 Votes

    • 35x35
      May, 2011
      Bill
      Review the article above and consult with one of the lenders mentioned. Ask about an FHA short refinance.
      0 Votes

  • 35x35
    May, 2011
    Alf
    Will this apply if I dont occupy the home? I have a rental property that I am underwater on. Its currently rented, but the rent only covers roughly 60% of the mortgage.
    0 Votes

    • 35x35
      May, 2011
      Bill
      One of the requirements for an FHA Short Refinance is that you must occupy the home as your primary residence.
      0 Votes

    • 35x35
      May, 2011
      Julie
      I'm in the same situation! It's running me dry. Let me know if you find out ANYTHING, please!
      0 Votes

    • 35x35
      Jun, 2011
      Bill
      Julie, I recommend you consult with one of the lenders mentioned above on your own to learn if you in your unique situation, qualify. Every homeowner's situation is slightly different.
      0 Votes