Debt Settlement| Reverse Mortgage | Credit Repair

loan modification, credit repair, fha loans, reverse mortgage, refinance mortgage, home purchasing, Mortgage Loan Modification

loan modification, credit repair, fha loans, reverse mortgage, refinance mortgage, home purchasing, Mortgage Loan Modification

Debt Settlement Relief Option
Simply put, Debt Settlement is an agreement between a debtor and a creditor to pay of any remaining debt at a reduced amount. Settlement occurs when a creditor is satisfied that a debtor no longer has the financial ability to repay the debt owed in full. In agreeing to a Debt Settlement, the creditor is relieving the debtor from their full debt obligation. Debt Settlement is typicaly the result of debt obligation. In most cases, no future interest will accrue once the account is sold to collections.

With Debt Settlement, a negotiator works with your creditors to settle for accepting a portion of what you owe them and “forgiving” the balance. This method of debt relief is a bankruptcy alternative that can help you become debt-free in 3 years or less by paying as little as 40% of your original account balances.

Basic Settlement Process

After reviewing option, decide to enter the Debt Settlement process.
Stop paying creditors that will be negotiated with later.
Start a settlement savings account for future settlement.
Once the clients stops paying creditors, the account will be closed after month 1 or 2.
After month 3 or 4, the account(s) will likely be sold to a third party collection company.
Most successful settlements take place with collection companies so it should be looked at positivly that the debt is bought by a collection company.
Once settlement is agreed, an offer is sent to client for review and signature.
Payment is then forwarded to creditor by consumer directly.
A copy of the confirmation of payment is required and filed.

Pros
Relief of debt 42 months or less
Average repayment: 40 cents per $1 owed
No repayment of future interest
Relief and piece of mind back
Get back to saving for a retirement

Cons
Harassing phone calls
Short term negative affects to one's credit
More difficult to obtain new financing
Risk of lawsuit (less than 2%)
May have to report forgiven debt as income

Credit Counseling Comparison
Credit Counseling services negotiate with your creditors to lower your interest rates, thereby reducing the time you are in debt as your payments go to more of the principal balance than before. Though Credit Counseling is one of the most commonly known bankruptcy alternative solutions, it can also be one of the slowest ways to knock out debt. Read More

Bankruptcy Comparison
While bankruptcy is an alternative that may or may not lower your monthly payments, it puts your home at risk if you have equity, other assets or if you are unable to make payments. Read More

Let's Discover The Best Strategy For You
Our trained debt relief experts will give you a free, no obligation consultation to help you discover which debt relief option is best for you, and how a bankruptcy alternative may be the right way to handle your situation. Call 800-315-2520 right now to start along the path to a debt free life today!