Feb. 9, 2008 - Short Sale Refi's
Short Refi's
On January 19Th 2008 I read an article written by Jeff Lazerson founder and president of an on line brokerage Mortgage Grader on BankRate.com . I have put off writing anything about it in hopes that more people would be talking about it. I have been talking to other Realtors® about this for at least 6 months. As prices keep going down in the Las Vegas area, my heart aches for the people who are going to lose their homes and because they are behind in their payments, their credit is in the toilet and they can not get refinanced because of that.
In Mr. Lazerson's scenario lenders would refi what the house is worth now forgiving the difference. The only question I have is what price drops would they use?
I have some clients that paid $790K for a beautiful home. I ran comparatives for them yesterday and that Max comparison is $649K which is down $141K. But the median is $550K which is a whopping $240K difference. WOW. So what price would the lenders use to refi? If my clients could refi at say 6% for $550,000 they could make the payments and not lose their homes. If something like this does not happen for them they will lose their home.
Wait though, are you thinking about the counseling and offers to freeze rates at an introductory rate for 5 years? Why would anyone do that when their homes are not worth what they paid for them. Sure real estate has always had their ups and down but $240,000 drop in a year?
Who is to blame for all this? Greedy lenders? Builders creating scarcity? Investors driving up prices? I really hated that period when a home would only be on the market 5 minutes. I had to beg a seller once to let us come and look at his house at 7am in the morning and stand in his kitchen to write the offer.
Even after the foreclosures stop appraised values are going to take many years to go back to where the value is back in these homes.
Read the BankRate.com article and give me your thoughts.
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Comments (19) :: Post A Comment! :: Permanent Link
View more entries tagged with: Short Refis, Foreclosures, Shortsales, Las Vegas Real Estate
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Feb. 11, 2008 - RE: Short Sale Refi's |
| Posted by Ellen Cannon |
| The article was not written by Jeff Lazerson. He was just one of several sources in the article. The author of the article was Holden Lewis, our senior reporter who covers mortgages better than anyone in journalism. Check out his daily blog and you'll learn something every day. http://www.bankrate.com/brm/news/mortgages/mortgage_update.asp |
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Feb. 11, 2008 - RE: Short Sale Refi's |
| Posted by Chris Shouse |
Ellen, thank you for pointing that out and you are very correct. I was so focused on what Mr.Lazerson had to say I neglected Mr. Lewis. I signed up now for Mr. Lewis news alerts so I won't miss any updates on things that concern my clients. Again my apologies to Mr. Lewis.
Chris |
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Feb. 21, 2008 - RE: Short-Refi |
| Posted by Loren Gingerich |
| Hi Chris. I don't know who is to blame, but our company has been part of the solution. The gentleman that Holden Lewis featured in his article is going about the short-refi completely wrong, in my opinion. What lender in their right mind would forgive $100K+ of debt and then want to refinance the same borrower. My company Wizard Lending LLC, dba: www.short-refi.com has been doing short-refi's for over a year, with a 70% success rate. I started the company because a couple years ago my wife and I were in foreclosure ourselves and had no where to turn. We had been stood up by a generous amount of brokers promising to bail us out, but none every came through. We went through this for about a year. Then, before it was over I became a broker myself and did my own short-refi on our home. I was only at 100%, but I short-refi'd our home for under 65%LTV. This is when I realized how to work a short-refi and that it could actually benefit a lot of homeowners out there. I started doing short-refi's for my own clients, as they would come across my desk. But I realized last year that I was missing the big picture and could help more homeowners by working with other brokers and realtors that already had these type of clients. So about eight months ago I started working with other brokers that were seeing this type of client on a regular basis, but didn't know where to turn to help them. We have networked with several brokers that send us their clients and we negotiate a short-refi for them, with their current lender. Once we are done with the negotiation, we hand them back a client that has a lower LTV, so the broker can now complete the loan. Most of the time we are creating equity in the home where before there was little or none. We work with brokers and realtors nationwide. Shoot me an e-mail or give me a call. I would be glad to speak to you about short-refi's anytime. My e-mail address is lgingerich@wizardlending.com or you can call my office number 319-248-9543. I truly believe that short-refi's are the wave of the future for home retention. Here is another article that was posted by Mr. lewis, where the chairman of the F.D.I.C. supports short-refi's. Here is the link to that article: http://www.bankrate.com/brm/story_content.asp?story_uid=24505&prodtype=mtg |
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Mar. 6, 2008 - RE: Short Sale Refi's |
| Posted by unclejack (Jack LeVine) |
wanted to say hi chris, and thank you for visiting my site.
Keep up the good work. You'll be amazed what kind of audience you can build if you keep at it.
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Apr. 24, 2008 - RE: Short Sale Refi's |
| Posted by mike |
| I was contacted by a firm that offered or would help me do a short sale refi but that ended up not happening. I would love to stay in my current house but the value of my home has lost its equity and I don't think tha'll be able to refinance once my arm expires. I did a little reserach and fouind that with a short sale your credit is affected by as much as 200 points and that I wouldn't be able tobuy another home for at leats24 months. Can you give me any advice?? |
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Apr. 24, 2008 - RE: Short Sale Refi's |
| Posted by Chris Shouse |
Mike,
Thanks for writing. Have you contacted your lender? Sometimes they will work with you and especially if your home has dropped in value. There was also a post here on this blog about someone who does short sale refi's the phone number was 319-248-9543 and the email was lgingerich@wizardlending .com.
Yes short sales would still affect your credit but it is not as bad on your credit as foreclosure.
Hope this helps a little and good luck to you.
Chris |
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Jun. 25, 2008 - SHORT REFINANCES |
| Posted by Phil |
| We are the leader in this space and have several lenders referring their clients to us....do your homework and find a firm that is staffed, professional, and has a technology platfrom to do these transactions..... |
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Jun. 25, 2008 - RE: Short Sale Refi's |
| Posted by Chris Shouse |
Phil, I looked at your sight and you have some very interesting items there. Good luck I also shared your link on my friend feed page and twitter. So hope you get some inquiries.
Chris |
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Jun. 28, 2008 - RE: Short Sale Refi's |
| Posted by Callie |
If you are looking to short refi because you are behind on payments and you somehow get approved, remember you will still have closing costs which depending on how much the loan is, could cost you an arm and a leg.
And if you don't get approved your bank may suggest a loan modification which most likely you will not be happy with your new terms but be forced into it because you feel you have no other options. Remember: Your bank does not look out for your best interest, they will make sure they reap any benefits before you do.
There is another option: Loss Mitigation. I am a case manager with Keep Your Property, Inc, a loss mitigation company who can help any distressed homeowner who has a property in a judicial state. ( This means the courts must notify you of the foreclosure procedures)
We have attorneys that work on your behalf to stop foreclosure, negotiate your rate and term until they feel we have reached a payment with in your budget, lowest rate and 30- 40 year term, eliminate late fees and penalties, eliminate or reduce 2nd mortgages, and keep you in your home.
You may rent, sell, or live in your home during this process which could take up to 24 months. During this time you would not be making any mortgage payments which would allow you to build a financial platform and forever stay out of this situation. We do not accept the banks first proposal. This first proposal is usually the one that they would have offered you with out professional help. We counter offer until we have come to agreed terms. This is not a refinance and there are no closing costs. I would need to analyze your situation to determine what your fee would be. You will not find this service in most loss mitigation companies. Do the research, you will see we are second to none with our services, and fight for you for up to 2 years. This will affect your credit, but like others have posted, it's better than a foreclosure, and you can rebuild once your new terms are set into place. Please contact me to find out if I can help you. My direct line is 407-860-1993 and my email is keepyourproperty911@gmail.com. I hope I have provided you with useful information. Good Luck! |
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Jun. 28, 2008 - RE: Short Sale Refi's |
| Posted by Chris Shouse |
Calli,
Thanks for the information. I hope everyone that needs you finds you. |
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Aug. 28, 2008 - RE: Short Sale Refi's |
| Posted by Brandon Haber |
If anyone would like to speak with someone about Short sales or Short refinances please let us know.
Thanks |
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Aug. 28, 2008 - RE: Short Sale Refi's |
| Posted by Brandon Haber |
| Sorry Here is the link to our site...<a href="http://www.rcsshortsales.com">Short Refinance</a> |
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Oct. 29, 2008 - RE: Short Sale Refi's |
| Posted by Reggie |
I have worked many short sales and now about 70% of my business have turned towards helping homeowners with loan modification / home retention. A few months ago I attempted a short refi and the lender would not go for it. I am starting to see a small attitude change on the part of a few lender's being more open to a short refi.
My question is: Homeowners who are multiple months behind do they not qualify for a short refi because of the extent of their last payments? Or will the circumstances of a temporary hardship override the multiple lates ? Or will the refi-lender's guidelines not allow the short-refi ?
Reggie, R.E. Broker
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Feb. 3, 2009 - RE: Short Sale Refi's |
| Posted by Crystal |
I need to short refi my house and I need some help. I am in Las Vegas. Can you help me here or refer me to someone. I would really appreciate it. Thanks you. |
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Feb. 3, 2009 - RE: Short Sale Refi's |
| Posted by Chris Shouse |
Crystal,
Which side of town are you on? Henderson or closer to Summerlin? I am putting feelers out to all the lenders I know and when I know where you are I will give you a phone number.
I will help if I can
Chris |
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Feb. 16, 2009 - RE: Short Sale Refi's |
| Posted by Las Vegas Short Refinanced |
Chris,
You have quite the feed going on here which is now almost a year old. Very impressive. Our experience with short refinances that I can tell you is up-to-date is that some lenders will do it and some won't. The bottom line is who the investor is on the loan. Depending on that answer will determine if the loan can be short refinanced and if the lender can even issue a short payoff. We make it a practice to ask each and every lender who the investor is so we don't waist our clients time or ours. We've gone through the trial and error process with approximately 15 lenders all of different investor backgrounds so cutting to the chase is key. We secure the new loan with the new lender and package the file for submission to the current lender (once we know they will play ball). We've had success but because each case is so different from the next, it's impossible to give an actual success rate. I think that anyone that tries to do this is being misleading. I am not an attorney and we do not tout a loan modification program which in our opinion is only a temporary fix. We also do not claim to stop foreclosure proceedings. We either can do it or we can't. It's very black and white and you either or refinanced or you aren't. There is no grey area. We don't ask for any up front fees which is illegal in Nevada. We aren't paid until the new loan closes. |
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May. 24, 2009 - RE: Short Sale Refi's |
| Posted by Gary |
I am in the process of doing a short-refi here in Vegas, and the company I am using required some out of pocket money from me. A post on Feb 16, 2009 stated that this is illegal in Nevada. I am just concerned because I do not want to wait for 3 months and find out that my short-refi got rejected. I will be a very upset camper especially since my ARM matures and the end of the year. |
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