Short Refinance Bootcamp Part 7
Comments (3)
August 4, 2008
August 4, 2008
After completing your Short Refi there will be a negative balance due to your lender at closing. This negative amount is handled by your current lender in one of 3 ways.
Watch this special episode of Short Refinance Bootcamp to find out what the three possible ways your negative balance will be addressed.
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3 Comments, Comment or Ping
Eric Veronica
At what point of the process does the lender let the homeowner know how they are going to handle the negative amount?
Sep 16th, 2008
Brian Kurtz
At the end, right before they issue the “demand letters” authorizing the title company to close the short sale.
They can only make the decision once they know what type of loss they are going to experience, know what type of kick-back from the Mortgage Insurance company they will receive (if any) and all other factors.
There are exceptions. On FHA 1st mtg short sales for example, they don’t ever require the borrower to repay the negative amount.
Sep 16th, 2008
Eric Veronica
Do you have disclosures in regard to the fact that the lender might come after them for some of the forgiven amount or is that unneccessary?
Sep 18th, 2008
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