ZipDebt Debt Relief

Fast Affordable Debt Relief

Charles Phelan

ZipDebt vs. Traditional Debt Settlement – How Do We Stack Up Against the Competition?

by

In my blog post on “The Future of Debt Settlement,” published a little over a year ago, I assessed the state of the debt settlement industry in the wake of the FTC rule-change that banned the advance-fee model for third-party debt settlement. To summarize, in that earlier post I described the in-progress breakup of the industry into three different groups: (1) companies closing down or suspending all marketing operations, (2) companies seeking loopholes that still permit advance fees to be charged, and (3) those firms attempting to comply in good faith with the FTC rule-change.

It’s difficult to put statistics to the number of closures, since the debt settlement industry has always been murky in terms of publicly available information. But one metric is membership in the industry’s trade associations, and by that standard a large majority of such companies have gone out of business. USOBA (U.S. Organizations for Bankruptcy Alternatives) has stated that its membership roster has declined from around 200 to only 30 companies. And the AFCC (American Fair Credit Council) is down to about 35 firms from an initial 220 members. These figures represent a membership decline of approximately 85%. However, since both of these organizations published new policies requiring their members to be fully compliant with the FTC ruling, it’s possible that many of these former member-companies are still in existence and have merely dropped their trade association memberships as they continue seeking “creative” (i.e., non-compliant) revenue sources.

What about those “loophole diehards,” as I call companies still trying to charge hefty upfront fees? There are a number of firms still attempting to exploit the so-called “attorney model” for debt settlement, on the theory that attorneys are exempt from the FTC ruling. At least one of these firms has been on the receiving end of multiple lawsuits filed by Attorneys General from various states, and while they are still a big problem for unwary consumers, it is only a matter of time before we see such companies exit the marketplace under regulatory pressure. That will leave two essential choices for the consumer seeking relief via debt settlement: the “FTC-Compliant” firm and the do-it-yourself approach.

In a March 2011 blog post titled, “Consumers Should Still Be Wary of the New ‘FTC Compliant’ Debt Settlement Companies,” I explained why people should still watch their backs when hiring a firm that claims to be FTC-compliant. Please refer to the March post for full details, but briefly, there are four key reasons why “buyer beware” still applies even to the companies not charging upfront fees:

1. Program durations of 36-48 months are still being routinely quoted by these companies. Take that long to settle your debts, and the odds are heavily in favor that you WILL be sued by one or more of your creditors. (At ZipDebt, we coach our clients to complete their settlements in a 6-12 month timeframe, which greatly lowers the legal risk associated with this approach.)

2. The major credit card banks did not suddenly turn around and start working with these firms after October 2010. So this means consumers need to wait past charge-off (after 6 months of non-payment) for their “professional negotiator” to even begin the process of settling their accounts. (At ZipDebt, approximately 90% of our clients’ settlements are negotiated before charge-off.)

3. Hire a third-party debt settlement company, and you can expect a much higher risk of legal action, not a lower risk. Consumers often get the false impression that they are “protected” by enrolling in a debt settlement program with an established company. Not true! In fact, just the opposite is true! If you wanted to get sued sooner rather than later, just hire a third-party debt company who sends out a Power-of-Attorney to your creditors. (At ZipDebt, we do not use POAs. Clients negotiate on their own with our guidance and coaching. Our clients have a fraction of the legal risk of clients enrolled with third-party firms.)

4. How do you know your debt settlement company will still exist a few months from now? With companies closing left and right, there have been numerous examples of clients being left in the lurch with no idea what progress (if any) has been made on their debt accounts. The financial pressures that companies are experiencing are enormous, as they attempt to convert from charging 15% front-loaded, to a percentage-of-savings fee on the back end. Many (if not most) firms attempting this conversion to FTC-compliance won’t be around for another year. They have made it to this point by using the revenue from “grandfathered” clients enrolled prior to 10/27/2010, where the fees are still coming in advance. Those revenue streams are drying up now, and 2012 will be a very tough year for most of these companies. Many will not survive another year of these market conditions. Why hire a company if you aren’t sure they will be there when you need them most?

ZipDebt pioneered the approach of do-it-yourself debt settlement combined with professional training (via audio CDs) and live coaching (delivered via email and telephone). Our results are published here and here. (Note: In 2012 we will publish updated statistics.) We challenge readers to find a better published track record anywhere in the debt settlement industry. We believe that ZipDebt clients settle faster for less total money out-of-pocket vs. ANY competing company or approach other than Chapter 7 bankruptcy. Of course, good luck to anyone trying to find the published track records of other companies in this industry to compare us against. Even today, the vast majority of companies do not publish their results at all! And the ones that do only disclose what they are required to, instead of a more detailed analysis of what is actually happening with their clients. When you examine the results of those few firms that actually do provide this type of data, it becomes immediately clear that traditional debt settlement programs result in higher legal risk and higher total cost to the client than my ZipDebt approach. (Note to skeptics: Please feel free to provide published data to the contrary, but I will not be holding my breath waiting for you!)

As with any business model, when you are successful, you see a steady stream of others trying to ride on your coattails and exploit your hard work for their own greedy ends. There’s an old saying: “Imitation is the sincerest form of flattery.” But whoever said that was not the owner of a business that has been ripped off countless times by copycats and quick-buck artists. For example, I’ve had people take my 32-page report and just sign their name to it. Others have settled a few debts based on my advice, then try to set themselves up as “experts” in debt negotiation. Some have written books or e-books based on my material, without any type of credit or source citation. Still others have set up DIY debt settlement websites based on “coaching,” with training materials that sound all too familiar. And so it goes.

Again, BUYER BEWARE! There are at least half-a-dozen active websites attempting to copy my business model. How do you evaluate the difference between ZipDebt and its competitors and make the right choice?

How to Compare ZipDebt to Other DIY Programs

• BBB Ratings – A+ for zipdebt.com as an accredited business, vs. C, D, or F ratings for competing firms (or NO ratings at all, meaning it’s a very new company).

• Moneyback Guarantee – ZipDebt offers all programs with a 365-day moneyback guarantee, compared to 30 days for most competing firms (not enough time to properly assess the information).

• Time in Business – I have been assisting consumers with debt settlement since 1997, and ZipDebt has been online since 2004, far longer than any of the copycats.

• Who Are They? – I operate with full disclosure and provide detailed information about who I am and my background in this industry. Compare this to the faceless “corporate” websites offering DIY programs where you have no idea who is behind the product.

• Live Coaching – We deliver coaching via email and telephone, tailored to the client’s specific list of creditors and unique financial circumstances, not just generic advice provided via online forums or blogs.

• Published Track Record – We publish our results so clients have proper insight into what can actually be achieved with this approach. Good luck finding published results from ANY competing DIY solution.

• We Do Not Refer to Third-Party Companies – We do not receive any type of compensation for “up-selling” from DIY to the far more costly third-party programs the way some other so-called DIY sites do. We only do DIY-with-coaching, and we never refer prospective clients to ANY traditional third-party settlement firms.

We’re confident that once you’ve done your research, you’ll agree that ZipDebt is the ONLY choice for do-it-yourself debt settlement, and in fact, we are the most prudent and rational choice for debt settlement in general. To learn more about our approach, please read our free 32-page download, “How to Eliminate Your Debts Quickly and Safely Without Filing Bankruptcy.” You’re also welcome to request a free 20-minute phone consultation. We’ll give you an unbiased recommendation on whether or not this approach is suitable for your financial situation.

Debt Settlement Letters – Myths & Misunderstandings Galore!

by

In my 14 years as a debt settlement professional, I’ve reviewed thousands upon thousands of debt settlement letters. Last year alone we had about 1,200 of them to review and approve on behalf of our clients. If there is one subject I know well, it’s how to document a settlement! There is nothing especially difficult about it, but I continue to be astonished at the amazing amount of bad information floating around on the Internet about this subject. In this blog post, I will set the record straight. If you want advice on how to protect yourself during a settlement transaction, you’ve come to the right place.

A word to the wise: You can either listen to someone like me, who reviews settlements on a DAILY basis, or make your decision based on some discussion forum where amateurs rule the day and the occasional “expert” weighs in with his or her opinion. I have seen cases where the exact opposite of the correct advice was given by so-called experts. So ignore my advice at your own risk!

1. NO LETTER, NO DEAL, NO EXCEPTIONS – EVER!

I have only one unbreakable rule for this game we call debt settlement. No letter, no deal, no exceptions, ever! In the course of negotiating settlements, you will sometimes run into lazy or misinformed debt collectors who refuse to grant a proper letter. They may use a variety of excuses, such as “There isn’t time and we need to get this handled today,” or my personal favorite: “This is a recorded line, sir. It’s all on tape, so you won’t need a letter from us.” This, quite frankly, is nonsense. If there were a problem later, how would you ever obtain a copy of that recording? You’d have to file a lawsuit against your creditor and obtain it through the discovery process. Good luck with that approach! It can be a real heartbreaker to think you have a good settlement, only to have the creditor take your lump-sum and treat it as a regular payment on the full balance and later deny ever having approved a settlement. Without a proper agreement letter, that is precisely the risk you take. The good news, however, is that getting a settlement letter is easy enough to accomplish.

The most important point to bear in mind here is that a settlement is a CHANGE IN CONTRACT between you and your creditor. The creditor’s own agreement language (i.e., the fine print on your credit card application) will always insist that any change to the agreement must be approved by the creditor and put in WRITING. So when necessary, you can apply some verbal ju-jitsu and use the creditor’s own policy to get what you need. When verbal agreement has been reached but the collector is balking at sending a letter, take this approach:

YOU: “If I accept this settlement it will modify the terms of my contractual agreement with XYZ Bank, correct?”

REP: “Yes.”

YOU: “Well, doesn’t the fine print in your original agreement state that any changes must be made in writing?”

REP: “Um, uh, let me get my supervisor for you.”

Escalate politely if necessary, but stick to your guns all the way up the food chain. If you don’t have a proper settlement letter, then it’s your word against theirs and you should not fund the settlement, period. By following this simple rule, you will save yourself a lot of grief.

2. FAX COPIES ARE FINE

The majority of settlement letters are forwarded via fax, and this is totally fine for the purpose of documenting the transaction. The creditor may or may not follow with a hard copy by post, but the fax copies have stood the test of time and consumers have been able to safely rely on this method for years. I cannot think of a single instance where a settlement was later disputed by a creditor when the only issue was documentation via facsimile rather than hard copy.

3. YOU WANT IT ON THEIR LETTERHEAD, NOT YOURS!

In the past decade-plus, I have overseen more than 10,000 settlements. In ALL cases without exception the agreement was documented on the LETTERHEAD of the CREDITOR, collection agency, or collection attorney representing said creditor, and NEVER on the consumer’s own letterhead. This is the correct method for the consumer handling their own negotiations, and it’s also the method employed by virtually all professional negotiation firms. Only inexperienced negotiators use the method of trying to get creditors to sign self-generated settlement letters.

There are books, e-books, websites, and a number of online “coaching” programs (aka inexperienced people trying unsuccessfully to copy what I do at ZipDebt) that claim you should mail a stream of offer letters to your creditors. This is a BAD IDEA! I don’t care if there are a few examples here and there where a creditor did agree to sign an offer letter as proposed by the client. The problem is that 99% of the time this method will FAIL. The reason is that all the major credit card banks have existing template language for documenting their settlements. The language has been pre-approved by the creditor’s legal staff. So you’re not going to get a manager at one of these banks to sign your stupid settlement letter and agree to your terms! And by insisting on doing it this way, you’ll be potentially costing yourself good settlements.

The correct technique is to verbally negotiate your settlement by telephone, and then to request a proper settlement letter be faxed to you before you present payment.

Aside from the reality that bank executives won’t sign off on your settlement letter, another reason I am opposed to working it the other way is the FOOTPRINT problem associated with any letter writing campaign. If you are using some type of “settlement system” that you purchased, think about how creditors will react when they start receiving the exact same letter over and over again from lots of different consumers. Their computer systems will catch on to this quickly, and before long, these letters will be classified as THIRD-PARTY generated. That is the kiss of death for a good settlement. Once the bank realizes you are using a system – a system that they are very much NOT in favor of! – then you can expect your account to be flagged for a different track of collections than the usual one. I’ve even seen this approach trigger early lawsuits or arbitration filings by the creditor.

Let me put it this way: Sending a series of pre-formatted settlement offer letters to your creditors is like repeatedly whacking a sleeping rhinoceros on the top of the head. Sooner or later the beast is going to wake up and have you for breakfast!

4. ANATOMY of a GOOD DEBT SETTLEMENT LETTER

Here is a simple checklist on what a proper debt settlement letter must include:

• The letter must be on the bank or agency’s letterhead
• The letter must be dated
• Your account number should be clearly identified (it’s fine if they only show the last 4 digits)
• The transaction must be described as a “settlement” or “settlement in full”
• Amount of settlement payment is stated correctly
• Payment due date(s) are stated clearly and correctly
• Individual payments sum correctly to the total amount to be paid on the settlement

Notice what this list does NOT include. It does not include a requirement for a physical signature. Surprised? Don’t be. About 99% of settlement letters don’t get physically signed. Trust me on this. It’s ok. Just like I have never seen a single settlement go sour because the creditor sent the letter by fax, I’ve also never seen a settlement go bad because the letter lacked a physical signature.

Guess what else is missing from this list? You’ll notice that there is nothing about how the settlement gets reported to your credit report. Why? Because it doesn’t matter. You can argue until you are blue in the face, and you’ll never get a creditor to alter the language by which it reports settlements, nor should you care in the first place. All settlements get reported as “settled for less than full balance,” or words to that effect, and they carry the same credit score code no matter what words are used. If it doesn’t get reported correctly, you can dispute the entry later on with the three major credit bureaus. But you can forget trying to have your creditor forgive 50% or more of your debt and also help you clean up your credit at the same time! It simply doesn’t work that way, and many an amateur has blown a perfectly good settlement over this point. Negotiate your settlements, THEN worry about your credit!

If you need professional advice on documenting your settlements, steer clear of the myths and misunderstandings you’ll find online, and give us a call at 866-515-2360. What we do is not based on theory, but rather on what has WORKED and has proven EFFECTIVE for thousands of clients in resolving problem debt.

NEW! DOCUMENT REVIEW SERVICE
Update: October 31, 2013


ZipDebt now offers document review for settlement letters and collection letters or notices. Have your document reviewed by Charles Phelan for a one-time low fee of $100. One business-day turnaround. Click here for more information or to order document review.

Debt Settlement for the Small Business Owner

by

While doing consultations with people looking into their debt relief options, here’s a question I hear over and over again: Can I settle my business debts the same as my personal debts? The short answer is YES. Small business debts can usually be settled for less than full balance, often 50% or less (much less in some cases), and the process generally works the same way as it does for consumer debt. That much said, there *are* some important differences between personal and business debt settlement, and in this post I’ll explain those differences.

First, how do we define “business debt”? Most small businesses have a blend of different kinds of debt. Business debts may commonly include:

• personal credit cards that were used to fund the business
• credit cards issued in the business name but personally guaranteed
• lines of credit or loans granted to the company itself
• vendor bills or trade payables

Virtually all of these are potential candidates for negotiated settlements.

Settlement of personal credit cards used to fund a business startup is the same process as personal debt. If there were significant cash advances taken on the account shortly before default, that can make it more difficult to settle, but otherwise settlements on this type of debt are routine.

If you have a credit card issued in the name of your business, but personally guaranteed by you, then this type of account is also very similar to a personal credit card. In fact, many so-called “business credit cards” are merely personal cards in disguise. This is especially true if your business structure is sole proprietorship. If you have a S-Corporation or C-Corporation, then there is still the personal guarantee required of most small business owners. It’s been my experience that most small businesses rely on the personal credit of the owner or partners for ALL of the credit, and that very few businesses have true business credit – where the liability is truly limited to the corporation and there is no personal guarantee involved.

Lines of credit and bank loans often involve larger balances than credit card accounts, and although these are usually issued to the business entity, here again the reality usually entails a personal guarantee by the owner. Settlement on this type of account is also quite common and routine.

Vendor payables are the credit accounts granted by suppliers and other merchants you regularly do business with. Negotiated settlements on this type of account may or may not make sense depending on the situation. If you are a restaurant owner struggling financially, it might make sense to seek a settlement on a bank line of credit. But it’s probably unwise to try settling the account of your favorite food supplier. If the restaurant has already closed down, however, then of course it makes perfect sense to negotiate this type of obligation as well.

The Key Differences with Business Debt Settlement

1. The first critical difference with business debt is that the Fair Debt Collection Practices Act only applies to consumer debt, and not to business debts. So, for example, don’t expect a collection agency working a business account to send you a notice that provides the customary 30-day right to dispute. Quite often, agencies working such accounts take advantage of the fact that the FDCPA does not pertain to collection activity on business debts.

2. The status of the business entity itself becomes a factor in the negotiation, to a far greater extent than the financial status of the consumer trying to settle credit card debts. If the business is an ongoing concern, then the challenge is to demonstrate the need for relief without falling back into a long-term payoff scenario all over again. If the business has already folded, then it’s a more straightforward path to resolution of the outstanding accounts via settlement.

3. On business lines of credit or loans, it is not unusual to see charge-off at 120 days of delinquency, rather than the usual 180 days for credit cards and most unsecured debt obligations. Therefore the collection pace on such accounts can move faster than expected, making it even more imperative to have a game plan in place for funding settlements as they become available.

4. Documentation is rarely required to obtain settlements on personal accounts. Not so with many types of business accounts. Especially on larger balance files like a $50k loan, it’s often necessary to provide profit-and-loss statements, balance sheets, and even personal tax returns. A proposal and package may have to be submitted in order to gain approval on a settlement offer. So the process can be more complicated than for personal accounts.

Aside from these important differences, the process of settling a business account is really no different from any other. Communicate with your creditor. State your case and make your offer. Start low and see what happens. A creditor’s first counteroffer is rarely their best discount. Be mindful of the charge-off deadline so you can time your negotiation for the deepest possible discount – with many creditors this is just prior to the charge-off deadline. It’s important for you to stay on top of the accounts, what agencies they are assigned to, what stage of the collection process they’re in – that way you won’t get blindsided by an unexpected legal action. And of course, focus on pulling together the funds needed to settle the accounts as the opportunities arise!

If you’d like some professional guidance while settling your business debts, please consider our Premium + Business Program, which includes extra support for small business owners. We’ve helped people all across the country keep their businesses going, or wind up their debts when they had already decided to move on. If you’re not sure whether debt settlement is right for you, just give us a call at 866-515-2360 or email us at [email protected] and tell us about your business circumstances. We’ll give you an objective opinion and help you figure out the right approach for your specific situation.

ZipDebt “Goes Social” – Please Join Us On Facebook & Twitter!

by

Although we are a bit late getting going on social media, ZipDebt is now on both Facebook and Twitter. We’re reaching out to our regular readers and former clients to help get us noticed out there!

If you have a Facebook account, please click this link, read a few of the short posts, and give us a “like” or two:

ZipDebt’s Facebook Page

If you have a Twitter account, please follow us here:

ZipDebt on Twitter

We’re also trying to do the same thing with our new site, SecondMortgageAdvice.com, so please follow us here as well:

SecondMortgageAdvice on Twitter

We greatly appreciate your support!

Thank you,

Charles J. Phelan

Debt Restructuring – Just Another Consumer Rip-Off

by

Steve Rhode over at GetOutOfDebt.org has published an excellent article exposing a new “debt relief” variation that will only spell trouble for consumers who are duped into enrolling. It’s called “debt restructuring,” and Mr. Rhode provides a very detailed discussion on the marketing approach being used to promote this program, including the totally absurd sales scripts used by boiler-room sales agents to sell this toxic sludge of a “service.”

By calling it “debt restructuring” instead of “debt settlement,” the people who have set up this program are trying to work around the FTC rules. After everything that has taken place in the debt industry over the past few years, the top players certainly must have full knowledge that their program is a scam from top to bottom, but they want their network of affiliate marketers (who move from debt program to debt program) to promote this as long as possible before it gets shut down and they move on to the next scam-du-jour.

For full technical details, please refer to Steve’s article, but the short version of the pitch is a fairy tale that goes like this:

WHOPPER #1: Stop paying your creditors and in six months they will charge-off the accounts and SELL them to debt purchasers. Don’t worry about lawsuits meanwhile, as creditors hardly ever sue that quickly.

WHOPPER #2. When your accounts get close to charge-off, we will send offers to your creditors to purchase your debts from them for DOUBLE what they normally receive from the debt purchasing industry.

WHOPPER #3. As part of your enrollment agreement with us, you agree to pay back 40% of the balance over time, but this money will go to the debt purchaser that we sell your account to, so the original creditor is out of the picture after the debt is bought away from them. Voila, guaranteed 40% settlement with no legal risk and no further credit impact.

WHOPPER #4. Yes, we know you are worried about lawsuits, and even though we downplayed that risk during the sales pitch, you should purchase our “optional” legal protection package for $3,000 to $5,000 extra. (How else are we going to get rich off you?)

The structure of this alleged “program” is actually quite a bit more convoluted than I have described it above. I have simplified it down to these four main points, because if the basic theory is not valid then obviously the whole program is bogus. Let’s tear these points apart one by one:

1. Yes, if you stop paying your creditors then after 180 days of delinquency the account will go past charge-off and be declared a loss on the creditor’s books. But the debt restructuring plan offers ZERO guidance to consumers during this crucial six-month period. As someone who has coached thousands of consumers struggling with credit card debts, this initial period of default is an emotional roller-coaster involving a barrage of collection calls and notices, legal threats, and potential lawsuits. It’s imperative for consumers to have solid coaching to get through this phase of collections.

Most importantly, it’s simply NOT true that lawsuits don’t happen before charge-off. They can, and do, and while they remain the exception rather than the rule, it’s impossible to apply one-size-fits-all advice to consumers. Every major creditor is different, and in some cases, a client could be targeted for early attack if their balances warrant it, or other factors on their credit report come into play. Telling people to “just ignore” the calls and letters for six months is extremely BAD financial advice.

2. There are three major problems with the assumption that offers to purchase debt accounts for double the going rate will be accepted by creditors with any consistency or regularity (which would be required in order for the program claims to be true). First of all, most creditors do NOT immediately sell their charge-off paper. In fact, they assign the accounts to contingency-based collection agencies, often on rotating assignments for 3-6 months. Therefore a “quick sale” is by no means assured even with those creditors who do tend to sell their accounts sooner rather than later. Second, there are certain major creditors that NEVER sell their accounts to debt purchasers under any circumstances. Nearly every client has a card from one of these creditors, so the program fails right out of the gate for people who have such accounts. Third, the purchase offers will quickly stamp a clear footprint on the technique used in this program. Such offers will quickly be coded and recognized for what they are – an offer coming from a debt restructuring firm. This will lead to retaliation by some of the major creditors, in the form of early-attack litigation against consumers using this system.

3. Aside from the problems discussed under points 1 and 2 above, there is the further problem that this type of arrangement violates every known standard of fiduciary responsibility. The role of debt service firm carries with it a fiduciary responsibility to do right by your clients and not become involved in a conflict of interest between your own needs and the clients’ needs. When a debt service company also becomes the purchaser of the clients’ debts, this clearly creates a conflict of interest. For one thing, it locks in the consumer to a 40% settlement plus the usual sky-high fees, when some creditors routinely settle for less. How does this serve the best interests of the consumer then? Anyone who understands the first thing about fiduciary responsibility will immediately recognize the potential for abuse in this type of approach.

4. The idea of a “legal defense shield” is essential to the sale pitch, since most consumers are savvy enough to realize that creditors have the right to sue for recovery on delinquent accounts. The insidious nature of this “optional add-on” is that it forms the basis for the high payout on sales commissions, so virtually every client will be “up-sold” until they buy the legal package. The problem is that it will be impossible for debt restructuring firms to deliver the claimed legal representation. If you get sued by a creditor, there is no magic defense against a judgment. And there will be an extra dose of intensity with lawsuits against clients using this system. The major creditors will want to stomp on this approach hard, so people will get punished by quick and aggressive litigation once their creditors catch on. The legal defense “shield” will be overrun with a barrage of lawsuits, and the whole thing will collapse of its own weight when the Internet becomes filled with consumer complaints. Many will be forced into bankruptcy as a result of their involvement with this program.

If you’re struggling with credit card debt, steer clear of bogus programs like this one and give us a call at 866-515-2360. We’ll help you analyze your situation and determine the best-fit strategy for your financial circumstances. What we do is not based on some theory, but rather what WORKS and has proven EFFECTIVE in resolving problem debt.

ZipDebt Launches SecondMortgageAdvice.com to Help Consumers with Toxic Second Mortgages and HELOCs

by

Today I’m proud to announce the launch of our new website. We are up and running at SecondMortgageAdvice.com.

We’ve built this new portal so that people looking for assistance with problem second mortgages can easily find the site and get help. Our country seems to be on the front end of yet another debt-related tidal wave (nearly $1 trillion in second mortgages, most of which are grossly overvalued on the banks’ books), so I’m quite certain that we’ll see the usual barrage of marketing efforts by shady operators in this arena. There are big bucks at stake, and consumers fearful of losing their homes or getting sued post-foreclosure are vulnerable to scams and schemes.

Since 2004, we’ve pioneered the “do-it-yourself-with-coaching” approach for resolution of credit card debts and achieved a track record that others can only wish they had. More recently, we have been applying that same approach to resolution of toxic second mortgages, with successful results. Just as with negotiation of credit card debt, the best approach with second mortgages is to keep control over the project yourself, but with guidance and coaching from a seasoned professional as you work through the process. This way you’ll avoid costly third-party services that will not obtain any better result than you can on your own.

If you’re looking for help with a second mortgage, please stop by the new site. We have individual pages for each of the 50 states, and as we accumulate additional data on trends for individual states, we’ll be adding to the content continually.

UPDATE: April 5, 2012

As of April 2012 we are offering PAID CONSULTATIONS ONLY on second mortgages or HELOCs, and no longer offer free consultations on this subject. Our fee is only $150, and includes 30 days of follow-up support via email. We made this change because our experience has been that each mortgage situation is totally unique, and requires careful analysis and discussion before a solid recommendation on strategy can be made. We have had so many inquiries on the topic of second mortgage or HELOC settlement, that we felt a paid consultation would be the most efficient method of assisting consumers to avoid scams and make the correct strategic decision. For additional details, please visit our other website at SecondMortgageAdvice.com.

UPDATE NOVEMBER 26, 2012:

Gerri Detweiler of Credit.com recently interviewed me on Talk Credit Radio on the subject of second mortgage and HELOC settlements. This is an in-depth podcast that covers a lot of important information consumers need to know on this topic. If you’d like to learn more about debt settlement as it pertains to mortgages or HELOCs, this is the audio file you’ve been hunting for! Click here to download the full podcast free of charge.