short for (short refinance). This is a term used for when a homeowner asks an investor/Lender to buy their Existing Mortgage Note from their current Lender at the current home value and make payments to the new Investor/Lender now with a lower Mortgage Principal Balance.
Joe Homeowner owed $500,000 on his home and decided to do a shortfi. The new Lender bought the Mortgage note from Joe's Lender for the amount of $200,000. Now Joe pays payments to the new Lender based off the $200,000 Loan Amount and saved $300,000.
by Home Solutions Network July 26, 2010