Some lenders will allow borrowers to complete a short refinance. A short refinance allows the borrower to refinance the mortgage property to a new affordable loan, at a loan amount less than the current loan balance owed. The lenders consider the fair market value (FMV) of the property and loans at a percentage of the FMV. Your credit and income have to be satisfactory for this to be a practical option.

Short Sale

If your loan balance is higher than your property value, the investor/and or insurer may accept a reduced amount towards satisfaction of debt upon the sale of the mortgaged property to a third party.  Our firm assists our clients with the process of completing the short sale. The benefit to the lender is the ability to dispose of the mortgaged property without the costs and expenses of the foreclosure process and without the costs and expenses of the marketing and selling of the property. The benefit to the borrower includes the potential to avoid a judgment.