Is it a good idea to use consumer credit counseling, to stop foreclosure?
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This might help you with questions.
http://www2.oprah.com/index.jhtml...
It made my son worse. he finally had to file bacnkrupst and had wasted all that money on the counseling service.
Credit counseling will do nothing to stop a foreclosure.
And why pay money to a credit counseling service when you should be paying your debts?
Easy credit counseling solution -> Quit spending more than you earn!
Operate on a cash basis only, tear up your credit cards, pay all excess to your highest interest rate debt.
Yes and no. First and foremost take a step back and ask yourself if you gain or lose from foreclosure. Check the market value of your home against the current balance of your loan(s). What equity do you have? I suspect foreclosing will probably result in a loss -- most people in today's market have equity. However, as long as your equity position is not negative you should do whatever you can to avoid foreclosure. The mark it will leave on your credit is something that will affect your ability to secure credit for years to come.
The best way to avoid foreclosure is to communicate directly with your lender -- they want to avoid it as much as you do. Many times if you provide them with a solid explanation, proof of your explanation, and a concrete plan to get caught up they can work with you. If you've tried this and you're not able to come to terms you're left with a couple of options:
1) Credit counseling. Credit counselours claim that they can help but many times they cannot. It is a little known fact, but many credit counseling companies are actually the lenders themselves! People are more willing to work with a "credit counselor" because they think the CC has their best interest at heart, but beware. In most situations, they are the bank.
2) Refinance. Sometimes I have seen people that were on the verge of foreclosure refinance their homes and start over. This option is last because if you do this you will pay a lot to have your recent late payments forgiven. But, if you have some equity this is probably something that will work.
BY FAR, the best thing to do is to call your mortgage lender tomorrow and do whatever it takes to work it out with them. Losing a home is terrible for your credit and it doesn't do much for your ego either.
P.S. In certain states, entering credit counseling may entitle you to legal protections. I did a little searching and found a toll-free advice hotline operated by the federal government. They should be an excellent resource. 1-800-569-4287
Consumer credit counseling is almost as bad as a bankruptcy on your credit report.
The best way is to try to get a loan modification, forbearance, or refinance with your lender. If you need any help just email me, at robert495713@yahoo.com. (this is not legal advice)
Best of Luck
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