Complex Financing

Feeling discouraged about credit card or mortgage debt? I have some good news for you.

I’ve been talking with a reader about their debt situation over the last year and was pleasantly surprised to see this letter regarding the progress being made. I just thought I would publish it as an example of what can be accomplished int the real world.

Dear Kristy,

Thanks for all of the advice you’ve given me via your website and via email. I wanted to tell you the status of my debt settlement efforts.

Mortgage Modification

I got a 5 year modification at 3.75% on a $354,510 1st loan and they added $26,583 to principal since I didn’t pay for a year. This makes it $381,094 for 5 years.

The 2nd loan for $85,000 has been placed as a charge off and I negotiated them down to a $21,500 settlement which is 25%. The offer is too good to pass up – I’m trying to work out a plan with them for them to take payments on the second mortgage.

Credit Cards

• owed $9,778, settled at #1,955 = 20%
• owed $2,429, settled at $728 = 30%
• owed $2069, settled at $415 = 20%

Remaining Debt
I have 3 credit cards that I plan to pay off and are current without a late payment. I hope to improve my credit for the next 5 years and then refinance the $381,094 if and when I settle with the 2nd loan.

Thanks again for all your help – you’ve been a lifesaver!

Key points of this reader’s successes:

• Though all you hear in the news is how there are no loan modifications happening, this person was able to arrange one.
• The mortgage modification happened despite the fact that there was a second mortgage in place. In some cases the presence of a second mortgage hindered the consumer from modifying their loan.
• The consumer was able to reach a settlement deal with the holder of the second mortgage.
• The consumer was able to negotiate impressive credit card principal reductions. This occurred without the help of a debt settlement company, on his own and without the credit card accounts going into collections.

Don’t give up or hide your head in the sand, great settlement deals are available if you put in a little effort!

Similar Posts:

• Both Chargeoff and Resulting Collection Are On My Credit Report
• Second Mortgage Shows Open Balance on Credit Report After Foreclosure
• The brief guide of the debt settlement work
• Obama Wants to Slash Debt. Do You?
• Consolidating Credit Card Debt