SHORT REFINANCE versus SHORT SALE.

To many people,a short sale and a short refinance are the same. This confusion leads many people to forgo the benefits of the short refinance, and lose their homes when the could have saved them.
Although both processes or transactions have many of the same elements: having the lender to accept less than the amount owed, the key difference is what happens at the conclusion.

Short Sale.

In a short sale, the owner loses/sells the house and gets the balance written off.

Short Refinance.

In a short refinance, the owner keeps his home, gets a lower mortgage balance (due to principal reduction), and a lower payment (due to the refinancing at current market rates).

The short refinance targets underwater home owners who continue to make timely mortgage payments and can be refinanced with another funding source.
The program is a two-fold process: it includes a short pay-off negotiation and a refinancing.
The new mortgage can be conventional or FHA insured.
The program is not sponsored by the government,(Hope for Homeowners or Making Home Affordable), it is not limited to Fannie Mae or Freddie Mac loans.

The greatest benefit is that there is not sharing of equity or future appreciation with HUD!
For more information about short refinance, logon to www.p2funding.com or email me at jpalla@p2funding.com