Debt Elimination, Secured

In general, consider security agreements to fall into two broad categories: real estate and personal property. For real estate, mortgage liens and deeds of trust create a unique set of hurdles, over and above secured terms appearing in most collateralized consumer transactions. In both cases however, both the elimination of mortgage debt and the elimination of secured personal property debt, the value of collateral and the expense of enforcing legal rights allow borrows substantial opportunities to settle secured debts.

Dealing with security

In rare circumstances, security agreements can be defeated based on technical legal defects. More likely, despite absolute terms of law, real-life practicalities of enforcement play havoc on profitable foreclosures and repossessions. Especially, consumable consumer goods (cars, boats, appliances and electronics) depreciate rapidly and leave a relatively high portion of secured debt unprotected in the event of foreclosure. These types of debts are the easiest of secured debts to eliminate with settlement offers for pennies on the dollar.