Short refinancing may help you save your home from foreclosure. Even for homeowners who are not eligible to take advantage of President Obamas mortgage bailout plan can benefit from a short refinance. Do not lose hope, the foreclosure process can be stopped, and even reversed.

A short mortgage refinance is when you get a different mortgage lender or bank to refinance your mortgage. The new mortgage from the new lender or bank is more suited to the current market value of your home, which helps a lot of homeowners. Lower mortgage rates, and a better more affordable home loan payment are obtainable for many homeowners.

The reason a short mortgage refinancing can work is because the new home loan is for a lesser amount than the amount that is due on the existing mortgage. Whoever your current mortgage lender or bank is would need to agree to taking a bulk amount from the refinancing, for less money, and mark your home loan as paid in full.

Why would a mortgage lender or bank agree to this? Well in these tough times, many mortgage lenders and banks are interested in sure things. Simple math can be done to estimate the risk you are to the lender, and how much a foreclosure would cost them, or profit them. Based upon that math, and the current market, a mortgage lender or bank may very well be inclined to accept a big payment, even though it is for less than the total amount due.

While not every homeowner will benefit, or even be eligible, for a short mortgage refinance. It is another option. Make sure you consider this option if you are in the position to make it work to your advantage. Many homeowners, especially in this bad housing market, can benefit if they can get a short refinance deal. Look into it for yourself.

-M Petrone

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