Mortgage Debt Settlement Risks You Should Know

20 Mar

Mortgage Debt Settlement Risks You Should Know.  Buying a home is a wonderful feeling and there are several ways to purchase a home:  cash, rent to own or by entering into a mortgage.  Most people opt for a mortgage and for very good reason.  A mortgage is a good way to establish a good credit history and because it is the fastest way to buy a home.  Cash takes a long time to save; whereas, a mortgage will get you into your new home almost immediately.

There are many things to consider when deciding to purchase a mortgage.  Handling your debt properly now and into the future should be your first priority because a mortgage debt that has gotten out of control can have very serious repercussions for the home owner.  So make sure you think about your long term plans and goals before deciding on how much of a mortgage you can handle.

If you happen to find yourself in a position where you have to rely on a debt settlement to get out of your current situation then there are a few things you need to look out for.   Let’s talk about a few things that you need to be aware of before entering into your next mortgage loan.

1.Tax Caveats – You will need to remember that tax does apply to loans that are more than $600.  Many times the taxes are deducted from your loan before the funds are released

2.Bad Credit Reporting – Most lenders will report your payment history to all of the major credit bureaus.  If you have not paid your mortgage on time, this will most definitely affect all of your future borrowing potential to some degree.  Even missing one payment can have a negative effect on your credit history.  Your future purchases will no longer qualify for acceptance by prime lenders and you will be forced to use subprime lenders that offer a much higher rate.

3.Watch Out For Fraudsters – Many people are approached by scammers and are tricked into hiring them to handle their debt settlement.  The scammer will ask for a large upfront fee and then take off with your money and you will have little to no recourse when it comes to trying to get your money back.  Some legitimate debt settlement companies, although legitimate, their business practices are less than favorable to the borrower.  They are known to take advantage of unfortunate situations such as these.

4.Beware Of A Possible Lawsuit – Lawsuits are very common in debt settlement cases.  It does not matter what your situation is or how it came to be; lenders will not adjust your loan to meet your current financial problems.   So remember you can be sued for not paying your debt in full.  In addition,  this will have a negative impact on your credit history.

There is so much involved when it comes to a mortgage.  It is in your best interest to find a qualified realtor to stand by you and help you through all of the potential real estate pitfalls.

A realtor can be your best friend and could save you from making an innocent mistake just because of something you were not aware of.  Your realtor has many years of experience and is there to help you every step of the way.

About the Author: Millie Gil has been a successful Licensed Real Estate agent for over 25 years in Florida.  Millie is Vice President of Bold Real Estate Group, a boutique agency committed to concierge personalized service for discerning buyers, sellers and renters of residential and commercial properties.  For more information please forward your request to

Servicing:  Port St. Lucie, Palm City, Jensen Beach, Stuart, Vero Beach,  Hutchinson Island, Fort Pierce,  Palm Beach, Jacksonville, Jacksonville Beach, Ponte Vedra Beach, Palm Coast, Neptune Beach, Amelia Island, Atlantic Beach, Fernandina Beach, Saint Johns, Saint Augustine, Daytona Beach, Fleming Island and New York real estate.

View thousands of listings,,, www.TheCascadesAtStLucieWest


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