Whats the deal....mortgage and debt consultant vs debt counselors

Question

Can some explain the true difference they seem the same to me. But I'm no expert.. how do they affect your credit and is it reported negatively on your report... help help help.... Don't wanna make any serious mistakes..

Answer 1

Some companies do "debt consolidation" for credit cards and other unsecured debts, others work strictly with mortgage debt, and some do both.

If you get on a debt consolidation plan, you'll be instructed to quit paying your credit card payments, and they'll eventually put you on a "plan," where you make one payment, which covers all of the debts.

A few things they won't tell you:

1- Most of these plans are never completed

2- If you fall off the plan, it's back to square one

3- As far as your credit score is concerned, being on one of these plans is as bad as being in a Chapter 13 bankruptcy.

Based on what I hear from clients, the big companies that work on both mortgage and credit debt do very little for clients when it comes to working out mortgage problems. They'll type your numbers in and hand you a "budget," and give you a few trite recommendations like, "eat out less." They'll crank out a few docs, ship them off to your mortgage company, and then they're out of the picture.

Based on my conversations with mortgage companies, they don't follow up once your package is sent in.

My company works strictly on mortgage issues, and we work with you from start to finish.

Here's a case study, if you'd like to take a look:

http://foreclosureresolutioncenter.com/t...

FWIW, if you want to keep your home, it's usually best to work on getting your mortgage fixed before you mess with your unsecured creditors.

If you'd like to reach me, you can click the link on my icon, or through the main website listed above.

Best of luck.