what to do?

[bobo60]

NC
Hello,
I hired National Debt Relief, to help me pay off my creditors. I never missed a payment with any of my credit cards. But my health problems took a turn for the worst, and the medical bills are draining me. I could not continue to make payments to my creditors, so before I fell behind in my payments, I hired NDR, to help me out. At first, it was going smoothly, paid off one creditor, in about 4 months, and they settled for about half, of what I owed. But then, Discover card, didn't go so well, and I had to have a Pro SE Letter, filed, so they couldn't put a lien on my house. that cost me an extra $600 in lawyer's fees. I owe on a mortgage, and was told, that if Discover Card was able to put a lien against my house, the bank would foreclose on my loan. Discover Card settled, out of court, and I am paying them off now. Just last week, NDR, calls me, and says it has a settlement for Bank Of America, but I need to come up with $1700, to move forward, so I will have enough money in the account, to pay both Discover card, and BOA. I don't have it, and can not get the $1700. Now NDR, is going back to the table with BOA, to try and get me a settlement, I can afford. My question is, should I trust NDR? Are they milking money from me? What happens, if BOA says no settlement, and takes me to court, and threatens to put a lien on my house? I am disabled, and on a small fixed income, and all this is making me even sicker. Should I contact a lawyer, and get a consultation? I've got so much invested with NDR, I just don't know what to do. I cant lose my house over this! Plus, I still have 2 more creditors to worry about! Help, Please!

 

[Dave1952]

Ok, You're on a fixed income, have some debt, and are barely squeaking by, yes? So why would anyone place a lien on your house?
You hire a debt settlement company. They make one of your credit card debts disappear. How you got the money to pay the credit card company or the debt settlement company is not clear but now you have less credit card debt, hopefully no other debt, and the same amount of fixed income. Aren't you in better shape than before?
The debt settlement company negotiates a deal with another credit card company. For $1700 the credit card company will forgive your debt. You don't have $1700 and the debt settlement company should know this. What do they propose? What happens if you say no to this deal? You are paying your bills, right?

 

[bobo60]

What do i do?

Ok, You're on a fixed income, have some debt, and are barely squeaking by, yes? So why would anyone place a lien on your house?
You hire a debt settlement company. They make one of your credit card debts disappear. How you got the money to pay the credit card company or the debt settlement company is not clear but now you have less credit card debt, hopefully no other debt, and the same amount of fixed income. Aren't you in better shape than before?
The debt settlement company negotiates a deal with another credit card company. For $1700 the credit card company will forgive your debt. You don't have $1700 and the debt settlement company should know this. What do they propose? What happens if you say no to this deal? You are paying your bills, right?

The debt management company, is debiting my checking account for $300.00/mo. The funds go into an account, setup for me, by the debt management company. When there are enough funds in my account to negotiate a settlement, with one of my creditors, they do so. The company has already settled one debt, its paid off. Now Im currently paying off another creditor, they have settled for me. But I had to pay an extra $600.00, to the debt management company, for lawyers fees, because one of the creditors served me with a judgment, via, local law enforcement, and I had to file a PRO SE LETTER, in court, so the debtor could not put a lien against my house. Now, they have settled another debt, with a creditor, but they need another $1700.00, in order to pursue this settlement. I had to reject the offer, because I do not have the money. The management company is going to try to re-negotiate another, more affordable settlement now. What im afraid of, is what if they cant settle, and this debtor decides to put a lien against my house? The bank still owns my house. would the bank call my loan, if a lien is placed on my property??? Are the extra lawyer fees legit, or are they trying to get more money out of me. The settlement company gets 24%, of the settlement amount, as payment. They never mentioned extra fees could arise, when I spoke with them about their program. They seem to be moving right along, and know what they are doing. should I stick with them, or get a lawyer involved. I have already paid a substantial amount of money to this company.

 

[TigerD]

The debt management company, is debiting my checking account for $300.00/mo. The funds go into an account, setup for me, by the debt management company. When there are enough funds in my account to negotiate a settlement, with one of my creditors, they do so. The company has already settled one debt, its paid off. Now Im currently paying off another creditor, they have settled for me. But I had to pay an extra $600.00, to the debt management company, for lawyers fees, because one of the creditors served me with a judgment, via, local law enforcement, and I had to file a PRO SE LETTER, in court, so the debtor could not put a lien against my house. Now, they have settled another debt, with a creditor, but they need another $1700.00, in order to pursue this settlement. I had to reject the offer, because I do not have the money. The management company is going to try to re-negotiate another, more affordable settlement now. What im afraid of, is what if they cant settle, and this debtor decides to put a lien against my house? The bank still owns my house. would the bank call my loan, if a lien is placed on my property??? Are the extra lawyer fees legit, or are they trying to get more money out of me. The settlement company gets 24%, of the settlement amount, as payment. They never mentioned extra fees could arise, when I spoke with them about their program. They seem to be moving right along, and know what they are doing. should I stick with them, or get a lawyer involved. I have already paid a substantial amount of money to this company.

It's called a scam. When I was a debt collector, if some told me they were doing this stupid scam, I immediately referred their file to legal for suit.

You threw your money away. Now pay your creditors like you should have all along.

TD

 

[bobo60]

What do i do

It's called a scam. When I was a debt collector, if some told me they were doing this stupid scam, I immediately referred their file to legal for suit.

You threw your money away. Now pay your creditors like you should have all along.

TD

I was paying my creditors, LIKE I SHOULD. For over 3 years, until I became deathly ill, and couldn't afford to anymore! This seemed like a way out, and still pay my creditors something, and get them off my back. I wasn't out to CHEAT anyone. I posted here for some advice, not a sarcastic answer! YOU sound just LIKE the losers that used to call me several times a day. It takes a pretty LOW person, to be a debt collector!

 

[Just Blue]

I was paying my creditors, LIKE I SHOULD. For over 3 years, until I became deathly ill, and couldn't afford to anymore! This seemed like a way out, and still pay my creditors something, and get them off my back. I wasn't out to CHEAT anyone. I posted here for some advice, not a sarcastic answer! YOU sound just LIKE the losers that used to call me several times a day. It takes a pretty LOW person, to be a debt collector!

One could argue that it takes a pretty LOW person to not PAY their bills.

 

[single317dad]

The "debt relief scam" is that you can negotiate with your creditors all by yourself; you don't need to pay someone to do it for you. That $300 you pay every month doesn't all go into your account; there is a fee -- a significant fee -- for this "service". They prey on people who have hit hard times yet still want to protect their credit.

You should review your contract with this company and determine if you are any longer in need of their services. They cannot stop collection efforts. They cannot prevent you being sued. They cannot prevent foreclosure or repossession. They will not represent you in time of need, but they may refer you to counsel in those cases.

You can negotiate settlements with any or all of your creditors. I recommend you have the total sum of your offer available when you begin negotiations. Read the sticky post in the "Consumer Debt" forum for that and more information. You can dig yourself out of this hole, but it might be a long way to the top. Selling your home before your creditors take it or place liens on it may be your best option.

 

[Dave1952]

I'm still not clear on what's happening. You're paying $300/mo to an account being used to settle your debts. &300/mo is a lot of money for someone who is barely squeaking by. Are you paying your debts on a monthly basis plus this $300? I doubt it if liens and judgements are showing up. When did you stop paying your bills?
It's likely that there are free debt clinics in your area. Ask your County government.
You need to read your agreement with your debt relief company carefully. You need to find out about these legal fees. Also you need to find out how expensive it will be to terminate this agreement.
And stop being rude to the volunteers.

 

[bobo60]

What do i do?

I'm still not clear on what's happening. You're paying $300/mo to an account being used to settle your debts. &300/mo is a lot of money for someone who is barely squeaking by. Are you paying your debts on a monthly basis plus this $300? I doubt it if liens and judgements are showing up. When did you stop paying your bills?
It's likely that there are free debt clinics in your area. Ask your County government.
You need to read your agreement with your debt relief company carefully. You need to find out about these legal fees. Also you need to find out how expensive it will be to terminate this agreement.
And stop being rude to the volunteers.

Ok. As far as being rude. I didn't fire the first shot. I came here seeking FRIENDLY advise, and get a sarcastic slap in the face. The reason I am so sensitive about this situation, is I was paying my credit cards, on time, every month, for about 3 years. Plus the fact, this could turn into a VERY serious situation. I cant just pack up and leave. I am ILL, and im not hiding behind that, just trying to get some help National Debt Relief debits my account each month.The money goes into a bank account, Global Solutions, in my name, that I have access to, and can see every transaction made. I can see, each and every payment, that is made to my creditors. When a creditor, so far, just one, is paid the settlement agreed on, NDR debits this account 24% of that settlement fee as their payment. Then moves on to the next creditor. The final settlement papers, that I receive from the creditors lawyers, always matches the numbers NDR, releases to me. So I don't see how they cam be scamming me here. But recently, NDR asked me for an extra deposit of $1700.00, so they could move forward with the BOA debt settlement, because im currently paying off discover, and will not have enough funds in my account, to cover both creditors, each month. I don't have the money, so NDR is going to renegotiate with BOA. I NDR, will they stand behind me, if this goes to court, and they said they would do all they can. My biggest question is, Would BOA, and other large corps, go as far as to take me to court for $2000-$3000??? Putting a lien against my house would not resolve my debt with them, because the bank owns the house, right? But the bank could call the loan? Its a looog story, and hard to explain here. All my credit card debt, is around $9000.00.

 

[single317dad]

Are you paying your debts on a monthly basis plus this $300? I doubt it if liens and judgements are showing up. When did you stop paying your bills?

SOP for these debt relief companies is to tell the consumer they can't help them until they stop paying their bills. Creditors are loathe to negotiate with a debtor who is paying on time. In fact, many of these places specifically tell the debtor to STOP PAYING, pay them instead, and put that money in one of these accounts for negotiation purposes. If that sounds like a scam, it's because it is!

By the time the debt gets to the negotiation stage, many times its already sold to a JDB. At that point the debtor's credit is completely wrecked, but a much more favorable negotiation can usually be had. Of course, the debtor could have done all that himself without paying a 24% fee.

 

[TigerD]

I was paying my creditors, LIKE I SHOULD. For over 3 years, until I became deathly ill, and couldn't afford to anymore! This seemed like a way out, and still pay my creditors something, and get them off my back. I wasn't out to CHEAT anyone. I posted here for some advice, not a sarcastic answer! YOU sound just LIKE the losers that used to call me several times a day. It takes a pretty LOW person, to be a debt collector!

No sarcasm at all. Direct, blunt, and accurate.

You dug the hole. Stop trying to find quick fixes and dig your way out. But if you are giving money to anyone other than your creditors, you are wrong.

TD

 

[bobo60]

What do i do?

No sarcasm at all. Direct, blunt, and accurate.

You dug the hole. Stop trying to find quick fixes and dig your way out. But if you are giving money to anyone other than your creditors, you are wrong.

TD

Not looking for a quick fix. The minimum payments I was making to each creditor (all credit card debt) was costing me over $300 a month, and with the interest fees, paid close to nothing on the principle. NDR, offered a way out, my debts would be paid, and they are being paid, and im paying about the same monthly, but the debts are getting paid off. First card paid off, I owed a balance of $2700 and change, NDR, negotiated, and they settled on $1400. Had it paid off in about 5 months, done, closed. I have all the transactions from the bank, and it added up to the amount of the settlement. so NDR. couldn't have scammed me. And when I needed the PRO SE ANSWER letter, for discover, NDR advanced me the $200 legal fee, and tacked it on the settlement. Im just worried about, if they taking too long, or cant settle an account for me, will I have time to get a lawyer or not, or should I cancel with NDR now? I read the contract, and I can cancel anytime, no penalties, or fees, just have to send a form USPS, five days before my next scheduled bank deposit. I am paying off discover card now. It might throw a wrench in the works, if I drop out now. Im just confused about what to do. I agree now, I should have just tried to work it out with each creditor, on my own, would have saved the 24% fee, but right now, I just want this over, without any legal trouble. I didn't stop paying my creditors, until, I was told do so, by NDR. And YES, I pay all my other bills, on time, when due, including my mortgage. Have never missed a house payment.

 

[Dave1952]

Why has NDR tried to settle your debts for more money than is in your account or expected to be? You are currently using the account to settle with Discover. There is no money to pay BOA. Why are they negotiating with BOA? Some sort of delaying tactic? You need to have a heart to heart with whoever is handling your case. Find out why they are doing what they are doing?