Author: Adam Lieberman
Phoenix Arizona is one of the hardest hit housing markets in the country. Many homeowners have an upside down mortgage or negative equity or facing foreclosure. They may be facing foreclosure. Our feverish launch upward in values is having a Newtonian equal and opposite effect right now. Whole neighborhoods are going vacant to foreclosures, and homeowners are finding that even though they have been making their payments they owe more than their home is worth. With interest rates coming down to historic levels, these homeowners usually cannot even take advantage of these historic rates because most lenders won’t even consider them for a new loan. So to add insult to injury, an upside down homeowner can’t even lower their payment to cope with these tough economic times.
Is there a solution?
Yes, 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 loan elsewhere? The answer is simple: The short refinance offers the old bank more money than a short sale or a foreclosure. The new loan is NOT a government bailout loan. For the homeowner, this can be a double win. A lower balance on a new 30 year fixed rate loan with an interest rate at or near historic lows can lower monthly payments hundreds of dollars per month. This is also positive for the neighborhood in preserving values. A short refinance is not considered in evaluating neighborhood values like a short sale or foreclosure would. It also keeps you in your home. This type of loan is very new and not common enough yet, but if enough people are able to adjust their loans back down to reality, we as a community will be much better off.
About the Author:
To obtain a Short Refinance contact a Mortgage company that offers that service. One in the Phoenix Arizona area is Surefast Mortgage.
Adam Lieberman writes about topics within the mortgage industry in general and sometimes specific to Arizona and California.
Article Source: http://www.articlesbase.com/mortgage-articles/short-refinance-arizona-negative-equity-mortgage-or-foreclosure-680319.html
0 comments:
Post a Comment