Short Refinance

A short refinance is a financial phrase that refers to a lender refinancing a mortgage for a borrower who is currently behind on their mortgage payments. Lenders short refinance mortgages to assist borrowers in avoiding foreclosure. Typically, the new loan amount is less than the current outstanding loan amount, and the lender occasionally forgives the difference. Although the new loan payment will be smaller, a lender may select a short refinancing since it is less expensive than foreclosure procedures.