Secured Debt Elimination

Preserving collateral is a little more difficult than negotiating and eliminating unsecured credit card debt. The right of repossession and foreclosure upon a secured debt prevents settlement elimination without consequences. But by agreement, almost all adverse consequences can be minimized.

Security agreements contain creditor rights, liens, and rights for enforcement. These terms can be modified by agreement or court order. Most often, secured lenders are amenable to settlement negotiations in lieu of legal action, so long as the creditor's recovery provides greater real value in hand, above the potential for filing suit. Filing collection suits often requires expensive legal help that cannot be supported in light of settlement offers.

Do you need legal assistance?

Retaining a lawyer is an option which generally is quite expensive. Lawyers produce their best results when dealing with large debts that produce large discounts that will support legal fees. For most debts however, negotiating companies and services produce for more profitable elimination options for most consumer obligations. Homes of course are the major exception. When attempting to adjust or eliminate mortgage liability, secured real estate appreciation and the potential for foreclosure profit is an almost irresistible apple for mortgage companies to ignore.