How David Greenfield Earned Your Vote

By: Moshe Kapetas, We Fix Mortgages

More than one in five homeowners owed more than their home was worth in the fourth quarter of 2009 according to BusinessWeek. With this in mind, banks are as anxious as ever to get what they can on outstanding mortgages – especially HELOCs (home equity line of credit) and second or third mortgages. Often, these can be settled for pennies on the dollar.

Unless you have a significant amount of equity in your home, you may be able to settle your loan by paying anywhere from 10 to 40 cents on the dollar. You will need to have sufficient funds available to pay off the bank right away, once they have agreed to the settlement and the amount of debt forgiven will count as income. Though you can certainly enter into negotiations on your own, a dedicated debt settlement company with the right negotiators and relationships can help eliminate surprises and ensure that you get the best settlement terms.