Debt Settlement FAQ

What types of debt can be settled?

Debt settlement companies handles unsecured debts only, like credit cards and not secured like loans (student, mortgages or any government issued loans), legal obligations (alimony and child support) and medical bills.

Can a consumer settle debts on their own?

Definitely, however,  it is not easy to negotiate with creditors. There are a few things that consumers should know regarding creditor tendencies. There are those that are very aggressive with collections that they’d threaten to take legal actions against clients for a couple of months of non-payment. But there are also some that passes the deliquent accounts on to a third party collection agency.

Debt settlement companies know about these characteristics well because they work with them on a regular basis.  But that being the case, a confident and well-informed consumer can settle on his own, just as well.

Is debt settlement right for everyone?

No, it is not.

Professional debt settlement programs have a ,000 or more (overall balance) requirement and a preference for past due accounts. Consumers must understand that debt settlement is one of the more aggressive approaches to being debt free and it has an desperation ring to it, hence the high balance requirement, because otherwise, consumers can opt for a debt management plan instead. Or just undergo credit counseling, have the counselors help with coming up with budget plan, and try to reduce debt d.i.y.

One more thing about “desperation” – debt settlement is a very good alternative to bankruptcy and it also has a fast completion time (3 years or less).

Can debt settlement companies guarantee a successful program?

No, and anybody claiming so is commiting a blatant lie.

There are no guarantees when it comes to money, especially debt relief, as whether or not the creditor will accept a settlement can only be known once a proposal has been pitched them.  However, once the creditor accepts what the program offers, it’s up to the consumer to stay with it until it’s done.

Do debt settlement companies  offer a “money back guarantee?”

Yes, there are some debt settlement companies that offer a money back guarantee once they’ve determined that a settlement is not possible.

What can consumers expect with a debt settlement program?

Reduced monthly payment and the prospect of being debt free in 3 years or less. However, creditors differ, and the actual amount that they have agreed upon can may change along with how it’s going to reflect on the credit report.

Debt Settlement

Monetary need of mankind will never have an end.  There must be a control in the money spent by an individual. When the need of money is more, there arises the problem of debt.  Since the usage of credit cards are more nowadays, people get into the problem of debt easily.  Americans are easily affected by debt issues. It could be even said as the major problem of Americans. In the year 1999, the purchases made by credit cards reached .1 Trillion. And in the year 2001, the credit card debt floated around 0 billion. This is because many individuals have started to use credit cards out of control. When something goes beyond your control, then it is time for you to look for a solution to clear your problems. Debt settlement companies are on its go to help people who suffer with debt problems. Americans are the ones who are mostly in need of Debt settlement companies.

It is a best choice to get the help of debt settlement companies to get control of your financial problem. Before signing up with a debt settlement company, it is your responsibility to find out the reliability of that company. Apart from reliability there are also other reasons to consider when you are in search of a debt settlement company.  The first and foremost thing is to find out whether the company is attributed by TASC, which means, The Association of Settlement Companies. This will help you to reduce the risks involved in it. The performance of these companies will be much better, since the member company is autonomously assessed by a third party. A best debt settlement company will take much effort and time to provide the best solution for you. Though it may take a long time for you to get cleared from your debt, you will get fruitful results at the end.

While selecting a debt relief program, you have to come out with a cost-effective service. Unable to find affordable services, will double your financial problems. One of the best debt relief programs to get out of you credit card debt is, debt settlement.

People who go for debt settlement must make sure that they get a service guarantee. The guarantee that a debt settlement company can give you is to refund the fee that that you paid them or to not charge you money till they help you with debt settlement. The debt settlement company you have employed with must be accredited with IAPDA which will have a complete knowledge on the laws of debt settlement industry. Thus it is always best to choose a company that provides a good customer service.

Mortgage Confidential: What You Need to Know That Your Lender Won’t Tell You

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Save Your House with Mortgage Loan Modification Programs

If you falling behind on your monthly payments you may be qualify for loan modification so as to make your monthly mortgage payment more affordable. Millions of home owners who current are facing difficulty in making their payments and many of homeowners have already missed one or more payments might get eligible. There are some government preferences available for mortgage loan modification program, as a reduced mortgage payment can save a home from foreclosure proceedings, however be careful of foreclosure support scams. The U.S. government has few mortgage aid programs which would assist homeowners stay in their homes and prevent foreclosures. With certain conditions the mortgage server could be consent through the Feds to present one such plan for eligible homeowners. If the person owning the assets doesn’t meet the criteria, there may be other legal alternatives available.

Federal Mortgage Loan Modification Program

If a homeowner can’t make the monthly mortgage payment because of an accepted financial hardship, he or she may get eligible for the Home Affordable Modification Program (HAMP). If Fannie May or Freddie Mac has provided a property mortgage, the mortgage lender is mandated with the federal government to adjust loans to get the homeowners eligible. Even though a home loan isn’t guaranteed by Fannie May or Freddie Mac, few mortgage lender have volunteered to facilitate those that qualify.

Rules and Guidelines for HAMP Loan Modification

With HAMP, the mortgage server has to modify the loan to an interest rate as low as 2%* per year and a term of 30 years. The lender is not obliged to go below 2% and isn’t required to extend the loan past 30 years. The homeowner(s) monthly gross income must be greater than 31% of the modified loans entirety monthly payments including property tax and insurance. The mortgage server isn’t mandated to reduce the principle amount.

The following steps will help the homeowner figure out if they qualify for the federal loan modification program or HAMP.

Utilize a mortgage calculator to figure the monthly payment on a 2%, 30 year fixed loan on the present principal balance.
Include applicable assets taxes and homeowners insurance to the monthly payments.
Part the monthly payment into 31%.
The amount of the homeowner(s) monthly gross earnings (not take home) must be greater than this amount.

As an instance, if the monthly payment is reduced to ,000 (by property taxes and insurance added) with a 2% loan, the homeowner monthly gross earnings have to be above ,225. If the monthly total earning is higher, the lender may choose to add to the interest rate above 2%.

Alternatives for Homeowners unable to Qualify for HAMP

Lending institutions would generally do what’s in their best interest or what the law consents. If a homeowner does not qualify for HAMP, the mortgage server would frequently take a course of action that’s in their best interest. If they feel it’s financially advantageous to foreclose on the property in its place of reducing the principle or expand the loan past 30 years, they would probably foreclose on the property. Prior to getting in to federal loan modification plan looking for the advice of an attorney, which specializes in foreclosure proceedings, may be the only alternative that could save a home from foreclosure. Beware of anyone that asks the homeowner to pay a fee upfront to modify a loan.

Arm Loan a Good Idea?

When deciding upon a home mortgage, one of the most common options to consider other than a fixed rate loan is an ARM loan. ARM is an acronym for adjustable rate mortgage. With this product, a starting rate is fixed for a certain period of time, and then when that time is up, the rate can adjust depending upon a pre-determined index and margin. This period can be from anywhere of 1 month or 10 years, and can reflect principal and interest or sometimes interest only payments. The adjust results in the mortgage payment either increasing or decreasing. There is also a cap on how much the interest rate can go up or down.

Many people today are afraid of ARM loans and automatically only consider a fixed rate loan when applying for a mortgage. Depending on the market, this philosophy is sometimes the most economical route. But many times it may be worth your while to consider an ARM loan.

Within the past year or so, there wasn’t any real discernable advantage to considering an ARM over a fixed rate loan. The rates were comparable. But lately, the rates in general have crept up and, when comparing them, the ARM rates can have a healthy edge.

When I take a loan application, I ask my customer what their future plans are. Only going to be in town for a couple of years? Do you work for a company that relocates often? Do you plan to expand your family any time soon? Answering yes to any of these questions is a trigger for me to present an ARM loan as an option. The average homebuyer only stays in their home 7.5 years. I recently had a customer who knew she would be in town for only 3-4 years. The difference between a fixed rate and an ARM rate was .375%. The ARM rate was fixed for 5 years before any adjustment would occur. No brainer.

There are a myriad of mortgage products out there for the consumer to consider. Ask questions of your loan officer, and more importantly, expect your loan officer to ask questions of you. And if you can’t sleep at night because you know that one day that ARM loan can adjust, just remember one thing. You can always refinance your loan when that time comes. Now, get some sleep.

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What Banks Won’t Tell You – Debt Settlement Advice

Debt settlement companies are accustomed to hearing how people aren’t getting true answers from banks, at least not complete truth.  Every good debt settlement company will help educate you about the way banks and lenders take advantage of everyday people by only partially informing them.

For example, if you are a young person, do you know that banks and credit card companies target you?  Students on college campuses and people who are under 25 are courted by banks because they don’t think about their purchasing choices over the long term.  More than 120 universities have cut deals with banks to issue student-ID cards that are also ATM and check cards.  Schools make millions of dollars from those deals.  In essence, colleges are offering up their students as sacrificial lambs to credit card companies.  No wonder people are in so much debt today, they’re taught from college that credit card debt is a good thing.  Debt settlement companies can help you grow out of the mistakes of your youth, and become financially free.
Courts may seem like a haven for those suffering under mountains of debt, but in all honesty the courts don’t care about your debt problems.  Since the late 1990’s, banks included arbitration agreements into their contracts, meaning you won’t be going to court if there’s a problem.  This means that rather than trying to sue banks over their activities, you will have to go through a private courts, which are heavily skewed towards corporations.  Debt settlement allows you to avoid such nightmarish scenarios and deal with your debt outright.

Also, did you know banks are charging extra fees for your overseas trips?  Your heavy credit card debt may be a result of a “once-in-a-lifetime” European vacation.  If you use a credit card to take money out of an ATM over in Europe, it may cost up to , plus any credit card fees on top of that.

Overall, credit card companies don’t tell you very much about their services.  Most of the unsecured debt that debt settlement companies help people with comes from credit card debt.  Part of this is that credit card companies don’t give you much information beforehand.  In spite of the pages of tiny text you get in the mail, credit card companies don’t disclose their inner workings.  In fact, during a 2007 investigation, The Government Accountability Office discovered that although banks are required by law to make fee information available to customers, one third of the banks investigated didn’t provide the required information.  Worse yet, more than half didn’t have any fee information on their Websites.

In the end, it’s important to remember that where you’re getting your information is important.  Debt settlement companies are on your side, and want to see you cut down as much of your debt as possible.  Debt problems can plague you for life, impacting your credit score, interest rates, jobs and more.  Contact a quality debt settlement company today to begin clearing out past debt and paving the way towards a successful financial future.

Total Mortgage Named One of America’s Fastest-Growing Companies: Included on The 2010 Inc. 5000 List

MILFORD, CONNECTICUT – (August 26, 2010), Total Mortgage Services, LLC, a leading mortgage lender and broker, announced today that it has been named to the 2010 Inc. 5000 list of America’s Fastest Growing Companies. The company was ranked as number 2,815 on the Inc. 5000′s annual list with a three year growth rate of 79 percent.

In Connecticut, Total Mortgage was ranked as the fastest growing Mortgage Originator, the 6th fastest growing financial services company, and the 48th fastest growing company overall in the state. Nationwide, Total Mortgage was ranked as one of the top 25 Residential Mortgage Originators and one of the top 150 fastest growing companies within the Financial Services category across the U.S.

“We are honored that Total Mortgage was recognized alongside some of the fastest growing and best managed companies in the United States by Inc. magazine, not only for our impressive growth, but also for our strategy and execution,” commented John Walsh, President of Total Mortgage. “In addition, these rankings clearly validate Total Mortgage’s industry leadership position, and demonstrate how our customer-centric approach offers significant value to responsible borrowers throughout the nation by combining some of the most competitive mortgage rates in the industry with great service.”

The 5,000 companies that made the list reported aggregate revenue of 1.6 billion and median three-year growth of 126 percent. Most important, the 2010 Inc. 5000 companies were engines of job growth, employing a record 1.4 million people, up from 1 million on last year’s list. Complete results of the Inc. 5000, including company profiles and an interactive database that can be sorted by industry, region, and other criteria, can be found at www.inc.com/5000.

The 2010 Inc. 5000 list measures revenue growth from 2006 through 2009. To qualify, companies must be U.S. based and privately held, independent – not subsidiaries or divisions of other companies and have had at least 0,000 in revenue in 2006, and million in 2009.

Total Mortgage was founded in 1997 with a customer-centric approach and a mission of responsible lending. The lender has always focused on working with responsible borrowers; giving them personalized service and the most competitive mortgage rates. Total Mortgage’s centralized model allows the lender to offer borrowers tangible value in both cost and time savings, while delivering one of the most efficient end-to-end lending operations that can optimize the lending value chain and mitigate risk throughout our organization.

For more information on Total Mortgage Services, please visit www.TotalMortgage.com

Can You Navigate Through Your Debts? – Debt Settlement Advice

If you’re suffering under too much debt, it’s time to take stock of your situation and find the best way out.  If you’ve got a lot of debt that seems to just be getting worse, this may not be something you can do on your own.  The steps to getting through your debt crisis are easy to remember, but can seem tricky to enact.  Firstly, you must determine what your biggest debt problems are.  Next, you must determine how much you can pay based on your income.  Lastly, you may need to enlist the aid of a third party entity to help you navigate your debt solutions.

Determine What Your Biggest Debt Problems Are

In figuring out which debts are causing you the most trouble, there are several key factors to look at.  Obviously, one of the most important is to figure out who you owe the most money to.  Your largest debts are most like those you will be paying for the longest time, so it’s important to look at them first.  Next, you want to check which of your creditors demand the highest monthly payments.  Often the highest payment will be to the creditor you owe the most money to, but this is not always the case.  It may be that some of your creditors are willing to renegotiate with you for a lower monthly payment.  If you can do this, it may make it easier to make ends meet each month.  It is important, however, to make sure that you pay enough to cover the interest each month.  Otherwise, you may lose ground on the total owed.  This leads into the next major point to examine, which is the interest rates on all your debts and see which are highest.  Once you have these factors figures out, you can weigh which debts are causing you the most trouble.

Determine How Much You Can Pay Based On Your Income

This step is simple.  Look at the amount of money you earn each month and ask three questions. 1) What is your regular income? (How much you make) 2) What are you necessary expenses? (Food, clothing, rent, etc.) And 3) What is left over for paying creditors?  If the amount your creditors demand from you each month is higher than the amount you have leftover to pay them, it may be time to look at debt settlement options.

Choose A Reputable Company To Help You

If you decide to start looking for a debt settlement solution, make sure you look closely at the company or entity you enlist to help you.  There are predatory companies out there that exist to take your money and leave you worse off then you started.  In order to protect yourself, look out for companies tat claim to be able to eliminate you debt using nontraditional means.  Don’t go with any company that is not reputable and recommended by trustworthy sources.   Beware of companies that charge too much up front and don’t deliver an improved financial status.  If you have questions about a company, check them out through a consumer reporting to learn more.

Debt Settlement Companies

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FHA Mortgage Qualifying Florida, FHA qualifying is easy……

 FHA CREDIT Qualifying

 ANALYZING THE FHA Mortgage applicants  Credit History

 Florida home buyers should know the many advantages of the FHA mortgage loan programs. FHA loans were created to help increase home ownership. For the Florida home buyer the FHA program can simplify the purchase of a home, making financing easier and less expensive than a conventional mortgage loan product. Some highlights of the Florida FHA loan program include:

Minimal Down Payment and Closing costs.

Down payment less than 3% of Sales Price Gifts are allowed Seller can credit up to 6% of sales price towards closing and prepaid costs. 100% Financing available No reserves required. FHA regulated closing costs.

Easier Credit Qualifying Guidelines such as:

  No minimum FICO score or credit score requirements. FHA will allow a home purchase 1 year after a Bankruptcy. FHA will allow a home purchase2 years after a Foreclosure.

To take advantage of the FHA program in Florida, Visit

www.FHAmortgageFHAloan.com

Past credit performance serves as the most useful guide in determining a borrower’s attitude toward credit obligations and predicting a borrower’s future actions. A borrower who has made

payments on previous and current obligations in a timely manner represents

reduced risk. Conversely, if the credit history, despite adequate income to support obligations, reflects continuous slow payments, judgments, and delinquent accounts, strong compensating factors will be necessary to approve the loan.

When analyzing a borrower’s credit history, examine the overall pattern of credit behavior, rather than isolated occurrences of unsatisfactory or slow payments. A period of financial difficulty in the past does not necessarily make the risk unacceptable if the borrower has maintained a good payment record for a considerable time period since the difficulty. When delinquent accounts are

revealed, the lender must document their analysis as to whether the late payments were based on a disregard for financial obligations, an inability to manage debt, or factors beyond the control of the borrower, including delayed mail delivery or disputes with creditors.

While minor derogatory information occurring two or more years in the past does not require explanation, major indications of derogatory credit–including

judgments, collections, and any other recent credit problems–require sufficient

written explanation from the borrower. The borrower’s explanation must make

sense and be consistent with other credit information in the file. Neither the lack of credit history nor the borrower’s decision not to use credit may

be used as a basis for rejecting the loan application. We also recognize that some prospective borrowers may not have an established credit history. For those borrowers, and for those who do not use traditional credit, the lender must develop a credit history from utility payment records, rental payments, automobile insurance payments, or other means of direct access from the credit provider. The lender must document that the providers of non-traditional credit do, in fact, exist and verify the credit information. Documents confirming the existence of a nontraditional credit provider may include a public record from the state, county, or city records, or other means providing a similar level of objective confirmation. To verify the credit information, lenders must use a published address or telephone number for that creditor. As an alternative, the lender may elect to use a non-traditional mortgage credit report developed by a credit-reporting agency, provided that the credit reporting agency has verified the existence of the credit providers and the lender verifies that the non-traditional credit was extended to the applicant. The lender must verify the credit using a published address or telephone number to make that

verification.

The basic hierarchy of credit evaluation is the manner of payments made on

previous housing expenses, including utilities, followed by the payment history of installment debts, and then revolving accounts. Generally, an individual with no late housing or installment debt payments should be considered as having an acceptable credit history, unless there is major derogatory credit on his or her revolving accounts.

When reviewing the borrower’s credit and credit report, the lender must pay

particular attention to the following:

A. Previous Rental or Mortgage Payment History. The payment history

of the borrower’s housing obligations holds significant importance in

evaluating credit. The lender must determine the borrower’s payment

history of housing obligations through either the credit report, verification

of rent directly from the landlord (with no identity-of-interest with the

borrower) or verification of mortgage directly from the mortgage servicer,

or through canceled checks covering the most recent 12-month period.

B. Recent and/or Undisclosed Debts. The lender must ascertain the

purpose of any recent debts, as the indebtedness may have been incurred

to obtain part of the required cash investment on the property being

purchased. Similarly, the borrower must provide a satisfactory

explanation for any significant debt that is shown on the credit report but

not listed on the loan application. The borrower must explain in writing

all inquiries shown on the credit report in the last 90 days.

C. Collections and Judgments. Court-ordered judgments must be paid off

before the mortgage loan is eligible for FHA insurance endorsement. (An

exception may be made if the borrower has agreed with the creditor to

make regular and timely payments on the judgment and documentation is

provided that the payments have been made in accordance with the

agreement.) FHA does not require that collection accounts be paid off as a

condition of mortgage approval. Collections and judgments indicate a

borrower’s regard for credit obligations and must be considered in the

analysis of creditworthiness with the lender documenting its reasons for

approving a mortgage where the borrower has collection accounts or

judgments. The borrower must explain in writing all collections and

judgments.

D. Previous Mortgage Foreclosure. A borrower whose previous principal

residence or other real property was foreclosed or has given a deed-in-lieu

of foreclosure within the previous three years is generally not eligible for a

new FHA-insured mortgage. However, if the foreclosure was the result of

documented extenuating circumstances that were beyond the control of the

borrower and the borrower has re-established good credit since the

foreclosure, the lender may grant an exception to the three-year

requirement. Extenuating circumstances include serious illness or death of

a wage earner, but do not include the inability to sell the house because of

a job transfer or relocation to another area.

E. Bankruptcy. A Chapter 7 bankruptcy (liquidation) does not disqualify a

borrower from obtaining an FHA-insured mortgage if at least two years

have elapsed since the date of the discharge of the bankruptcy.

Additionally, the borrower must have re-established good credit or chosen

not to incur new credit obligations. The borrower also must have

demonstrated a documented ability to responsibly manage his or her

financial affairs. An elapsed period of less than two years, but not less

than 12 months, may be acceptable if the borrower can show that the

bankruptcy was caused by extenuating circumstances beyond his or her

control and has since exhibited a documented ability to manage his or her

financial affairs in a responsible manner. Additionally, the lender must

document that the borrower’s current situation indicates that the events

that led to the bankruptcy are not likely to recur.

A Chapter 13 bankruptcy does not disqualify a borrower from obtaining

an FHA-insured mortgage provided the lender documents that one year of

the payout period under the bankruptcy has elapsed and the borrower’s

payment performance has been satisfactory (i.e., all required payments

made on time). In addition, the borrower must receive permission from

the court to enter into the mortgage transaction.

F. Consumer Credit Counseling Payment Plans. Participation in a

consumer credit counseling payment program does not disqualify a

borrower from obtaining an FHA-insured mortgage provided the lender

documents that one year of the pay-out period has elapsed under the plan

and the borrower’s payment performance has been satisfactory (i.e., all

required payments made on time). In addition, the borrower must receive

written permission from the counseling agency to enter into the mortgage

transaction.