BiggerPockets

I just saw on the news about this Hope Program that will be coming to South Florida. It is for FHA loans, you're going to be able to refinance your loan to market value. That means that even though I purchased at 235K I could refinance at 150K at a fixed rate. They will lend 90% and you have to qualify and it can't be an investment property. This would be great!!!! Have you guys heard of this, and how well do you think this will work?

The poster above is correct that it is viewed as a short sale or really more like a short pay off. These transactions are called short refinances and they consumers credit is definitely impacted just like in the short sale (Paid as Agreed Settled For Less than the total amount due). We have seen hundreds of short pay offs and find that the lenders are processing these in greater numbers. Our clients have generally seen reduction as low as 90% of FMV which is many times especially for our clients in FL almost 50% every time. Florida is one of the hardest hit states and one of our largest areas of expertise. Make sure that you pass everything past the underwritters prior to starting the process as they may kill the deal if they are not aware that the previous lender is being paid less than full.

If you have any questions feel free to PM us.

Regards,