How A Debt Settlement Could Stop A Foreclosure?

In this article, you will learn:

• If a debt settlement can stop foreclosure
• How long a settlement may take
• How someone could settle debts they are current on

The only way a settlement could stop a foreclosure is if the settlement is on the mortgage, which I’ve never heard of before. So I would say no, I cannot see a situation where a settlement on a debt would stop a foreclosure case because the foreclosure case is only about being behind on your mortgage.

How Long A Debt Settlement Generally Takes?

I have never seen a debt settlement company truly work. The problem is, at my office, I see the people who’ve done them and failed, that’s why they need bankruptcy help. If they’ve done a debt settlement and had success, they wouldn’t be coming to me to figure out what do I do next. I have seen people who have stayed with the debt settlement company for years because debt settlement companies are trying to negotiate all of your debts, but they still are negotiating them one at a time. Each creditor will have different rules. Some of those debt settlement companies have you make monthly payments, and when it gets to a large enough payment, then they offer the settlement. So, it just truly depends, but it will take a long time to work through it from my experience. Now, that might not be true for people who have more balances. My experience is they’re only the people who do not succeed in debt settlement.

Settling Debts If You Are Current On Those Debts

You could try to settle if you are still current. It’s similar to the foreclosure case. If they think you can afford it, why would they negotiate? Now, I have seen some people call up who know that something’s happening. “I’m about to have a surgery, I’m going to be on bed rest for six months,” or just something they know. There are layoffs at work that are supposed to last for certain amount of time, or other things of that sort, and they have called up the lenders before they fall behind because they don’t want to fall behind. I’ve even seen them getting forbearance agreements, interest freeze, or payments freeze for a certain amount of time, but I don’t recall anyone who has had the ability to settle the bill for a lesser amount when they are current. I have seen other kinds of relief, but not that particular one.

For more information on Debt Settlement in Illinois, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (847) 440-5998 today.