The Equiturn Program

The Equiturn Program

The Equiturn Program

A Short Refinance (or short pay refinance), also known as a short payoff, is a transaction where the lender agrees to accept less than the full amount owed.

Instead of the property being sold, it is refinanced with a new lender. The short refinance allows the homeowner to retain ownership of the property, while at the same time avoiding a foreclosure or possible bankruptcy.

If you want to keep your home, but dont have enough equity to get into a foreclosure bailout loan, a short refinance is your answer. By negotiating a short refinance with your current lender, you can obtain a payoff of less than the full amount owed, and refinance your home with a new lender.

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 Equiturn Program offers the bank a chance to "clean-up" their balance sheet by getting a property completely off the books. Plus it gives them an 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 Equiturn 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 lenders 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.

For more information on short pay refi please click here.