Frequently Asked Questions

Short Pay Access charges NO UPFRONT FEES! We don't get paid until you have received a successful short pay refinance!

Is This A Loan Modification?

No. This is a complete refinance & payoff of the existing loan. Your loan will be replaced with a new “smaller” mortgage loan. Possibly at a better rate than your current rate.

In what States is this program available?

The Approved States are AZ, AL, CA, ID, FL, GA, HI, IL, IN, KY, LA, MI, MN, MS, MT, NM, NV, OR, TX, WA, UT is pending.

How Is My 2nd Mortgage Handled?

Since the new mortgage amount cannot be greater than 97% the current appraised value, both the first and second lien holders would have to essentially wipe away the difference without placing any further obligation on the homeowner to repay the difference.

Having more than one mortgage lien on a property does complicate things and prolong the process, however the Short Pay Refinance Program is designed to accommodate this type of transaction

Why would my bank consider this reduction?

It is in their best interest to do so.  Most banks today are taking massive losses on foreclosure properties as well as short sale properties. Plus they are taking big losses by providing Loan Modifications to homeowners which reduce the interest rates & monthly payments being collected by the bank.

The Short Pay Refinance Program offers the bank a chance to “clean-up” their situation by getting a property completely off the books. Plus it gives them a infusion of “cash” which increases their ability to invest in other opportunities. Banks are in the “Lending” business…not the Real Estate business

This program is not dependent on you being in default. Unlike a Loan Modification or a Short Sale, which sometimes requires a borrower to be delinquent on their mortgage payments, the Short Pay Refinance Program follows standard lending guidelines and only works if the borrower has a clean recent mortgage payment history.

While there are some exceptions to this rule, a Short Refinance is a mainly designed for a homeowner that can fully qualify for a new loan, yet wishes to remain in their home with a Reduced Loan Balance.

The main challenge with negotiating a short payoff is proving that it is in the current lender’s best interest to write off a portion of loan amount on a borrower who is paying their mortgage on time. We develop a strategy to present your “case” to your lender in a light that makes sense for everyone involved.

What is the Short Pay Refinance Process?

All applications are meticulously evaluated to ensure that homeowners are qualified for our program. Time is of the essence, so we move as swiftly as possible to process all transactions and provide a quality product for you.  The processing timeline begins once the Signed Consulting Agreement has been received via fax which can be downloaded from the 'Getting Started' page on this website.

Application Timeline Flowchart:

Step 1 (First 72 Hours)

• The application package is reviewd for completeness
• Contact is made with the homeowner to acknowledge receipt
• File will not move to Step 2 until we have a complete package

Step 2 Once We Have A Complete Package

• File is submitted to processing for DU/Pre-Approval
• AVM & HUD1 is ordered
• Homeowner will be contacted to let them know it will be a few weeks until the next update (3-4 Weeks)

Step 3 Current Loan Negotiation

• File will be turned over to the negotiation team
• Applicant will be contacted with the approval/offer

Step 4 Refinance of New Loan Amount (Expect 30 Days)

• Updated Docs requested from borrower
• Disclosures sent to borrower
• Finish out the refinance process

What are the costs associated with the Short Pay Refinance Program

All Closing Costs for the new loan including escrow fees, title charges, recording fees, new loan fees & origination fees will be included in the new loan amount. Your only loan related expense will be for an Appraisal Report on your property.

The cost of the “mitigation & negotiation” services is $5,000 or 1% of the negotiated new loan amount, whichever is higher. *Jumbo" Loans incur a higher cost for negotiation.

Who Qualifies?

• Applicant must qualify for a new FHA Mortgage
• Applicant needs a credit score of 620 or more
• Applicant must have verifiable income
• Applicant must have a Hardship or have a reasonable expectation of a Hardship
• Property must be applicant’s primary residence (2nd home and investment property programs coming soon)

What Are The Tax Consequences of a Short Payoff?

We cannot provide tax advice and we strongly suggest you seek counsel for your specific situation.

The federal government passed the Mortgage Forgiveness Debt Relief Act of 2007. We have included a link to the IRS website where you can learn more about this law.

Click this link for info: Take Me To The IRS Site

How Will A Short Payoff impact my Credit?

That depends on your lender.  Thre impact of this transaction on your credit could range from a Positive impact to a Negative impact.

Your lender has the option of reporting this a “Paid & Closed” account or a “Settled & Closed” account.  Paid and closed will have a positive impact on your credit rating and the Settled status will have a negative impact.  Fortunately, even with a Settled status, the impact on your credit is not devastating.  It will cost you “points” on your score, but you can begin immediately to offset that impact by paying your NEW mortgage exactly on time or even early if possible.  Before long, your credit score will have completely recovered.