What is short refinancing?
Short refinancing is when your current lender agrees to reduce the amount of the principal owed on your home so that you can refinance with another lender. Lenders are generally more amenable to a loan modification than resorting to this option. In fact, most people who qualify for short refinance are already in foreclosure. With this option the homeowner gets to stay. The lender accepts a lower payoff in return for not going through the hassle and expense of foreclosing on a property.
