What Is A Short Refi?
I was dealing with Loss Mit at Wash Mutual and they gave a Short Refi as a solution. The homeowner does not want to sell, so a straight short sale is not in the cards.
Can anyone explain exactly what a short refi is? My guess is that the bank takes a discount on the condition it gets paid off from the refi. WaMu is a 1st. There is a 2nd for 80k. WaMu would do a short refi on the condition that the 2nd receives nothing.
How generous of WaMu. Seems like you answered your own question. WaMu would agree to accept less than they are due if and only of the 2nd gets nothing. If you are in a strong financial position, you could purchase the 2nd at a steep discount, then agree to accept, nothing from a short refi..