FHA Short Refinance HELP - the budget worksheet

It is truly amazing right now the number of homeowners who are upside down on their mortgages and could benefit from an FHA Short Refinance, if only they knew it existed. Every day I get calls from homeowners who owe $30,000 to well over $200,000 more than what their property is worth (this is one trigger for the FHA Short Refinance). Throw in that the fact that all those crazy adjustable rate mortgages from 2005 and 2006 are now resetting to higher payments. It goes without saying that right now, there is a tremendous oversupply of homeowners who need to Short Refinance. But because of their declining property values and lack of equity… they think they can’t.

The truth is that in certain circumstances they can get a Refinance. It’s called the Short Refinance because we are negotiating a payoff from the current lender that is less than the amount owed. And the FHA Short Refinance is one of the least known and least understood mortgage transactions out there.

A successful FHA Short Refinance works exactly like a short sale in that the current lender accepts less than is owed as a payoff for the transaction. The major difference is that in a Short Refinance the homeowner retains ownership of the home, just like a typical refinance. After all, in the current lender’s eye, who would be willing to pay more for the home after a foreclosure? A bottom feeder investor looking for the lowest price on foreclosed property? Or the current home owner?

When applying for a Short Refinance you are applying for both a new mortgage with me, Paul Dunn – Tucson’s #1 FHA Mortgage Loan Originator, and you are applying for a short payoff from your existing lender. One of the most important documents you can provide is a budget worksheet.

If you are considering applying for an FHA Short Refinance, print out the Monthly Budget Worksheet, complete it and then fax or email it to me ASAP. It is important to be able to prove to your current lender that you are in a financial hardship and they will need to see your monthly cash flow.

It is important for you to know that there is a specific strategy and a VERY SPECIFIC STEP-BY-STEP ACTION PLAN which must be follwed when applying for a short refinance payoff from your existing lender. If you are not working with an experienced FHA Short Refinance expert, your chances of failure are extremely high.

For more information about the Short Refinance, you can call (520) 225-0380 or contact me here