Short home loan refinancing is not a new concept. Unfortunately, due to tightened credit for sub-prime borrowers, it has not been much of a factor in dealing with the current home foreclosure crisis.
However, short refinancing may soon become a realistic option for even those homeowners with challenged credit. Despite possible tax consequences from debt cancellation, this may become an increasingly popular loan modification tool for homeowners. Leave it to American ingenuity, hard work, the profit motive, and government subsidy to make it happen.
Short sale has long been a popular resolution for overburdened homeowners unable to make payments on mortgage loans. As values continue to decline, with many properties this is the only avenue for voluntary sale.