Mostafavi, Marco & Wimmer, PLLC is a debt relief agency. This means that we will explore all non-bankruptcy options that you may have. Our goal is not to sell you on a bankruptcy or to rush a bankruptcy filing. We take time to work with you and determine if there is a more viable way out of your debt. All our consultations are with attorneys and we do not place a time restriction on them. We take as much time needed to ensure you are properly educated on all your debt relief options.
o Loan modifications are utilized to reduce mortgage payments. Banks have been given millions of dollars to assist homeowners in making their payments more affordable. The actual relief given to homeowners is questionable. Many loan modifications reduce payments, yet prolong the term of the plan. Others reduce interest payments or fix rates, yet the home is significantly underwater. It is imperative to consult with a bankruptcy attorney to determine your rights and liabilities. Every loan is different which results in different liability.
o Mortgage companies are being investigated for predatory loans and many times a bankruptcy filing gives them incentive to modify a bad loan.
o In a short sale, a home is sold for less than what the seller owes on the property. Many times this is a more beneficial option vs. foreclosure because the impact on credit is less detrimental. Keep in mind there may be tax implications and further liability resulting from a short sale. Get educated on these liabilities with a free consultation.
• Debt Consolidation/Credit Counseling/Debt Settlement
o These programs are good options for those who can repay debt, just not the extreme interest rates. Keep in mind your creditors must agree to these programs and can still sue at anytime. Settling your debt is another good option, if you have lump sums to pay to creditors. Generally, creditors are willing to settle for 20-30% of the total debt. Again, you are not protected against lawsuits unless stipulated in writing. Bankruptcy is the only way to be protected from lawsuits.
