The idea of the FHA short refinance program was to give lenders some incentive to avoid foreclosing on distressed, underwater homeowners by refinancing them in to an FHA loan at the current market value of the home. The primary incentive was supposed to be that doing so would cost lenders less money than foreclosing.

Regardless of which mortgage lender you use, our hud approved housing counseling can help you negotiate with them. In particular, the lenders who participate in programs like the FHA’s Short Refinance plan will be familiar to us. With a short refinance, the principal balance owed on the mortgage is reduced.

It will allow many of these borrowers to refinance into a lower cost fha-insured mortgage without requiring additional underwriting. fha-insured homeowners should contact their existing lender to.

An FHA streamline refinance is a faster and cheaper way to get a better deal on your FHA-insured mortgage. Not all FHA streamline refinance lenders are the same.

With a short refinance, the principal balance owed on the mortgage is reduced. Only FHA-approved lenders may originate or service loans for FHA. In a short sale, the lender gives its consent to allow the home to sell in order to satisfy the debt. It involves the lender accepting. 7 minute read.

October 5, 2010 – On Tuesday September 7, 2010, the FHA started a program designed to help homeowners who are underwater on their mortgages-those who owe more on the home than the home is worth. Known as the FHA short refinance option, it’s a refinancing plan for borrowers who do not have FHA loans and are current on their mortgage payments.

information on home equity loan A home equity loan (hel) lets you borrow a fixed amount, secured by the equity in your home, and receive your money in one lump sum. typically, home equity loans have a fixed interest rate, fixed term and fixed monthly payment. Interest on a home equity loan may be 100% tax deductible (please consult your tax advisor to see if you qualify).

Streamline Refinance loans can let you avoid a credit check and appraisal, while Simple Refinance loans can help you avoid out-of-pocket costs. If your current mortgage is not an FHA-backed loan, you may still qualify for an FHA Cash-Out Refinance loan or an FHA Rehabilitation loan. Cash-Out Refinance loans can provide cash based on your home.

chapter 7 bankruptcy mortgage What Happens to Mortgages in Bankruptcy. – Chapter 7 Bankruptcy and Your Mortgage. Although the bankruptcy will discharge your personal liability for the home loan at the end of the case, the lender’s security interest in the property remains in force. So, if you don’t make your payments, the lender can foreclose.

A short refinance is a transaction in which a lender agrees to refinance a borrower’s home for the current market value, in effect making it more cost effective for the borrower. The lender agrees to replace his own current loan with a new one, and pays off the difference.