Wednesday, Oct. 29, 2008

45. The Short Refinance

This new term describes a rare but growing option for homeowners struggling to make payments on a house now worth less than when they bought it: another new lender agrees to rewrite the loan tied to a fresh appraisal. The tricky part is getting the current mortgage company to take less than what it's owed — but given banks' woes, it's more likely than it once was.