Defending yourself in court against a debt collector is possible, but make sure you have all of your documents in order and you understand your rights.
Make sure the summons is legitimate. Don’t fall for a fake notice from a scammer.
Don’t let them intimidate you. Make them prove you owe and they have a right to collect.
You may want to consult a lawyer for an objective analysis of your case.
Can you go to jail for debt? No, but you can for contempt. Therefore, you should never avoid a court order regarding your back loan payments and child support.
You won’t go to prison for making a mistake or not being able to pay your taxes, but you will if you don’t file your return, evade, or commit fraud.
A paid in full letter states to your collector that you completed payments on your account.
It should include a request for acknowledgement of this face and a statement that you expect no further actions.
It will not immediately help your credit score much when you complete payments on the account.
Upside-down mortgage relief comes in a few forms. Which is best for you depends on if you want to stay in your home or walk away.
If you are underwater and have negative equity you can work with your bank to modify the loan or reduce the principal. You probably can’t refinance.
If its best to leave your home then you should consider a short sale rather than let the bank foreclose. Bankruptcy is also a better alternative.
The Mortgage Forgiveness Debt Relief Act excludes qualified loan forgiveness.
The IRS does count forgiven liabilities as taxable income, but you can avoid these with proper tax planning.
What the Bible says about debt is cautionary. While debt is not a sin, we should be careful with our money.
You should always tithe, even when you have financial problems.
Also, you should always pray about your money problems. God wants to hear your concerns.
The government has greatly reduced their mortgage loan modification programs in recent years.
HARP and FMERR are no longer available, but Fannie Mae’s HLOR is still available as well the Flex Modification. Your lender probably also has its own programs that you should consider.
What happens when you modify your mortgage? It will affect your mortgage, may stop foreclosure, and will affect your ability to get loans later on.
Therefore, you should only apply to do this if you are in a serious financial crisis that will cause you to lose your home.
What is a mortgage modification and agreement and how do you apply for one?
It may be an opportunity for you to save your home if you are in a financial crisis.
If you cannot meet your mortgage payment and have already missed some months you may not be able to refinance, but the bank still may make an agreement to lower the interest, lengthen the term or defer the principal of your loan.
While the government has stopped many programs like HARP, Freddie Mae and Freddie Mac still have home refinance programs to help people underwater on their mortgages.
Fannie Mae and Freddie Mac each have programs to help. Also, banks have loan refinancing and restructuring programs.