FHA Short Refinance Gets A Boost From The Housing Rescue Bill

The Housing Rescue Bill just passed Congress and that is fantastic news for households facing the prospect of losing a home to foreclosure. An additional $300 Billion will be allocated for FHA Short Refinance Loans (FHASecure) allowing home owners faced with the prospect of foreclosure to do an FHA Short Refinance and keep their home, even if they owe substantially more than their home is worth.

An FHA Short Refinance allows a lender to take a short payoff and avoid the costly expenses associated with foreclosing on a property. Homeowners will get an FHA Short Refinance Loan and buy insurance to cover their homes in case of default.

Foreclosure activity was up in my area, Tucson, by about 50% over last quarter. So there could be some relief with this bill.

Paul Dunn
Tucson's #1 FHA Loan Originator
Arizona USDA Rural Home Loans