One mortgage lenders view on the fha short refi

FHA mortgage lenders and founders of the online brokerage FHA short refinance programs, believes that some foreclosures could be prevented if delinquent borrowers could refinance their loans, but with some of the debt forgiven. This type of transaction, called an FHA short refinance or FHA short refi, is rare. FHA refiancers want to set up a streamlined system to make FHA short refis more common.

Greatly simplified, this is how an FHA short refinance works: You owe $300,000 on a house that you bought at the top of the market. Since then, house values in your neighborhood have fallen by 20 percent, and your house is now worth $240,000. The rate on your subprime adjustable-rate mortgage has gone up, and you can't afford the higher payments. Instead of foreclosing, the FHA lender agrees to forgive $60,000 of the debt and refinances the mortgage for $240,000 -- an FHA loan you can afford!

"The lenders are going to take a hit anyway," FHA short refinancer argues. "The biggest thing this does is prevent the number of documented foreclosures happening in a neighborhood and causing the values to deflate. It keeps people in their homes and gives them an FHA short refi loan to boot."

These are intersting concepts for the FHA loan market for refinancing of FHA short refis.

List of Short Refinance Lenders

I have been searching for a list of FHA short refinance lenders and then I realized that pretty much every FHA lender will do a short refinance through FHA. The FHA short refi program is going to have to make sense to the lenders. Which begs the question - how many FHA lenders doing short refinances make sense these days?

FHA Short Refinance are more popular than FHA would prefer - that much we know.

More on FHA Hope For Homeowners

Questions and answers on FHA refinance program called Hope For Homeowners has people around the internet learning about the Housing Recover Act of 2008. We've been looking into Hope For Homeownership for some time now. The main focus on the FHA program is on calling it Hope For Homeowners and I'll ask this rhetorical question.

• How many borrowers in Florida have been helped by the FHA Secure foreclosure refinance?
• Will an FHA mortgage lender in Florida be able to refinance a borrower that is in default on the FHA refinance program called Hope For Homeowners?
• And finally, is the FHA loan program Hope For Homeowners available in a PDF format for easy reading?

We'll check back and add to this post on the FHA refinance program as time goes on. Until then, look at the questions and answers for the Hope For Homeowners program and learn how to help with an FHA mortgage refinance in Florida.

Contrast this with an FHA refinance outisde of the State of Florida.