Well, it’s finally happened! Short refis are here! I just received an e-mail from one of the lenders that I broker to that they are now accepting “short refis”. Of course, your lender has to agree to reduce your balance!However, given the current decline in values it makes good business sense for all lenders to begin to consider this. I am not quite sure how this work will get done. I do Loan modification for folks already and in that, you contact the lender(s) directly and ask them to modify the terms of the loan. Typically, the balance remains the same though.

I imagine that we will be looking for that same type of processing to find out if the current lender is interested in taking a large reduction on the loan in order to get paid.

I do have bragging rights on this as I stated over a year and a half ago that short-refis would come into play. I will be writing more on this topic as I am sure that it will hit the news stations in about two weeks. Interest rates are hitting lows that even Baby Boomers haven’t seen, so there will be lots of interest from the public on this.

Contact me if you have additional information on this! Happy New Year!