Since November of 2010, I have spoken to every company, firm or individual who publicly claims to provide mortgage relief services to homeowners. My findings and conclusions, based on my research, will be a surprise to most of you. They are in contradiction to the advice you are getting from financial advisers, mainstream media, government and large corporations. 1) Avoid law firms that encourage litigation against your mortgage lender. Your …read more »
There are few industries that are as permeated by myths, misinformation and controversy as is the debt settlement industry. It is my goal to provide truthful, factual, unbiased information in order to dispel the confusion and misinformation. Unlike debt consolidation companies that forward your monthly payments to your creditors, debt settlement companies place your monthly payments to them into a trust account, then forward the money to your creditors when …read more »
The following article entails the viewpoint and opinions of Doug Johnson, who has spent ten years and thousands of dollars researching companies and firms within the debt relief industry. Help with IRS Debt I am not an attorney and I do not have a license to practice law or give legal advice. The following information is for educational purposes only and should not be construed as legal advice. I feel …read more »
You see the advertisements in newspapers, on TV, and on the Internet. You hear them on the radio. You get fliers in the mail. You may even get calls from telemarketers offering credit repair services. They all make the same claims: “Credit problems? No problem!” “We can erase your bad credit — 100% guaranteed.” “Create a new credit identity — legally.” “We can remove bankruptcies, judgments, liens, and bad loans …read more »
There are many opinions and much controversy as to the feasibility of taking out a loan against the equity in your home (home equity or debt consolidation loan) to pay off unsecured debt, i.e., credit cards, lines of credit, loans, medical bills, etc. It has been my experience that most people take out home equity loans in an effort to lower interest rates on credit cards and make one monthly …read more »
Instead of making payments to creditors, payments are made to a Debt Settlement company who deposits your money into a trust bank account. They negotiate the balance of your debts with your creditors, and make lump-sum payments when sufficient funds are available in your account. (NOTE: Debt Settlement is often referred to as “Debt Negotiation”) Most Debt Settlement companies charge a flat fee based on a percentage of your debt …read more »
Credit Counseling companies offer counseling and advise as to budgeting and money management. They represent themselves as “non-profit” since they do not charge a fee for their counseling service, however, most Credit Counseling companies require significant fees for their “Debt Management Programs.” (NOTE: Debt Management is more commonly known as “Debt Consolidation”, not to be confused with a Debt Consolidation Loan) As a client of a Debt Management/Consolidation Program, you …read more »
A brief explanation of bankruptcy follows: Chapter 7 bankruptcy, sometimes called a straight bankruptcy, is a liquidation proceeding. The debtor turns over all non-exempt property to the bankruptcy trustee who converts it to cash for distribution to creditors. The debtor receives a discharge of all dischargeable debts. In many cases, the debtor has no property that he would lose so Chapter 7 allows that person a “fresh start.” Chapter 13 …read more »
The average household in America holds seven debts—but those seven debts translate in to more than 5,000 monthly payment possibilities. With this in mind, the payoff of all debt can be significantly accelerated using a proprietary software program combined with personal coaching. This software program uses sophisticated algorithms to analyze all possible payment options and calculate the payment strategy that most effectively minimizes interest, thus reducing the payoff of debt …read more »
A Loan Modification is a permanent change in one or more of the terms of a homeowner’s loan that allows the mortgage to be reinstated as current, and results in a payment the homeowner can afford. Successful loan modification also stops the foreclosure process. There are companies that provide legitimate “loan modification” or “foreclosure prevention services”, but the industry is largely unregulated, making it difficult for homeowners to separate the …read more »