|1. shortfi||1 up, 0 down|
Short Abbreviation for (Short Refinance) The refinancing of a mortgage by a lender for a borrower currently in default on his or her payments. This is done to avoid foreclosure. Typically, the new loan amount is less than the existing outstanding loan amount and the difference is typically forgiven by the lender.
Joe Homeowner owed $500,000 on his home and decided to do a Shortfi versus a Refi. The new Lender bought the Mortgage note from Joes Lender for the amount of $200,000. Now Joe pays payments to the new Lender based off the $200,000 Loan Amount and saved $300,000.
|Submitted by: tom ashley||Submitted on 2010-08-20|