Short Refinance

A Short Refinance, also known as a short payoff is the equivalent of a short sale but you get to stay in your home. It is a transaction where the lender agrees to refinance the home and accept less than the full amount owed. Instead of the property being sold, it is refinanced with a new lender.

The short refinance allows you to keep your home, while at the same time avoiding a foreclosure or possible bankruptcy. If you want to keep your home, but don't have enough equity to qualify for a foreclosure bailout loan, a short refinance may be your answer. By negotiating a short refinance with your current lender, you can obtain a payoff of less than the full amount owed, and refinance your home with a new lender.


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