Short Refinance Is A Viable Option For Arizona Homeowners Looking At Foreclosure

The first thing I did this morning was read FoxNews and ran across this article that stated US Home Foreclosures Jump 53% In June. Being an FHA Mortgage Loan Originator in Tucson Arizona I was curious what the numbers looked like for Arizona. The reason I am writing this post is to show you the numbers for Arizona and that a Short Refinance may be able to provide solutions to at least a few homeowners facing foreclosure.

Here they are for ARIZONA! (all this can be reached through various links from the Fox article)

• Only Nevada and California had more foreclosure activity in June 2008
• 12,950 Arizona households were involved in some sort of foreclosure activity in June 2008
• 1 out of every 201 households had some sort of foreclosure activity in June 2008
• Foreclosure activity is up 127% over the same time last year
• Foreclosure activity remained the same as reported for May 2008

I also received a call yesterday from someone who was upside down on his mortgage by almost $100,000 on a property valued at about $150,000 and had an ARM set to reset in a couple years. He may chose to walk away as so many others are. In this case the Short Refinance is NOT an option because he is not in a financial bind and the ARM reset is years down the road. He had two options in his mind: 1) do a short refinance and eliminate the $100,000 he is upside down, and 2) walk away from the property and save $100,000 PLUS in debt.

How many other homeowners are faced with that very same question?

My advice to him was "option #3" to "ride it out"... real estate values will come back, it is simply a matter of time.

I don't know what he will decide...

The Short Refinance is a viable option for homeowners who are in a financial bind due to a reset or coming reset of their mortgage. There is discussion that availability will be widened and as that happens I will keep you posted. Even those faced with a foreclosure may be eligible. If you or someone you know is in this situation, shoot me off an email. If I am unable to help in your state, I will provide you with a professional in your area who can.

Paul Dunn
Tucson's #1 FHA Mortgage Loan Originator