DEBT ADVOCACY CENTER

They are a pretty new company. I don`t know much about them but I did look them up on the BBB and this it what it says.

[quote]Nature of Business


This company first came to the attention of the Cleveland BBB in February of 2008. Based on information obtained from its website the company helps persons facing foreclosure to obtain either a loan modification or release of personal responsibility for a deficiency judgment.

The company has indicated to the BBB that its fees are on a sliding scale depending upon the loan amount. For example, the fee for a loan under $100,000 is $2200.

The company offers a 2 part money-back guarantee. If upon further review of loan documents they feel they will not be able to obtain a reinstatement offer, they will refund the fees within 10 days. If they are not successful at obtaining an offer of reinstatement on the loan - i.e. stop foreclosure proceedings - with the arrears spread out over a 12 month period, they will refund 100%.

At our request the company elaborated on its money-back guarantee. Depending upon the state in which the consumer lives, the company typically collects half of their fee upfront. The remaining balance is due only if a loan modification is successfully negotiated. If not successful, the upfront fee will be refunded to the consumer.

The company has indicated that some states require these upfront fees to be held in escrow.

Customer Experience


BBB reports are provided solely to assist you in exercising your own best judgement and are subject to change at any time This business does not meet BBB criteria for a satisfactory or unsatisfactory rating. Any BBB concerns about the business are stated in the report The BBB processed no complaints about this business since the firm's BBB file was opened in February of 2008

I hope this helps :D[/quote]

No ryme or reason in pricing practices. I left when it was determined that the company did not meet the laws of all the States they did business in.

what did you mean they did not meet the laws of all the States?

I am currently 3 months behind on mortgage and am looking in to using a company called debt advocacy center. We can not afford to lose any more money and 2,495 is a lot for my family, I have been laid off since June and do not qualify for unemployment. Phone calls from homeq are making me physically ill. Anyone have advice?
Desperate

Each state has specific laws regarding what the DAC does. They were not in compliance with contracts per state requirements or how money was handled and or how much they could actually charge. According to Fannie Mae and HUD, DO NOT USE companies that charge a fee to do this service. Contact your State AG to get information on non profit organizations who will act as advocates in your State to help you avoid foreclosure.

THe company I used and they gave me the runaround. Essentially, they rely on the idea that most consumers are not aware that you can directly deal with the banks, etc. to modify the loans, or do a deed in lieu of foreclosure. They claim they use "Legal tactics" to strong arm the lien holders; howerver, they have templates that are very general and they mail that off to the mortgage companies. I lost 3K using them. I would suggest nobody use them and claim them on BBB site. Do not use any company, just deal with the banks yourself. These companies are taking advantage of desparate people. Do not use them.

I am confused as to what these advocacy places are supposed to do to get you current on your mortgage??? can't you just call you mortgage company and set up a repayment agreement? with this economy and the amount of foreclosures banks are even more willing to work out a payment plan you can live with ....I would suggest calling your mortgage company and asking for a forebearance plan.

I am a Senior manager with the DAC and would like to respond to username: (AlostDebtadvoccenterfraud) ,
I would love to know how you lost 3k using us? We have had one complaint filed against use with the BBB, it was resolved within hours of being filed, and I know the nature of the complain was not someone losing 3K! Our company is an open book, ask us anything that you want and you will get a straight forward answer!

I would also like to respond to user name:(Anon),
Are you an attorney? I would like to know how you have come to the determined that our company doesn't meet the laws of all the States we do business in.

Ed Davidson the Attorney that owns this company has been around for years and has a clean track record for helping people!

Well Anon listed himself as a former employee. Did you have an attorney leave your company? You're a fairly new company and I'm sure that if you are an honest one then I'm sure we'll see some positive posting from consumers. If not, well....in customer service, if you get good service, you'll tell a friend, if you get poor service, you'll tell everybody.

Has anyone had success in getting help from DAC for a release of personal responsibility for a deficiency judgment?

Don't be fooled by smoke and mirrors...They are good at talking alot and saying little. Folks, you CAN deal with the lenders yourself or better yet if you don't feel comfortable doing so, contact your State AG's office and they will direct you to organizations in your State that will help you for FREE. Ask Senior bullshit artist "Marc" why pay for the service if you can do it for free? What is Marcs prior background...Senior Loan Officer? Isn't that like leaving the chicken coop to the fox?

They call themselves "Advocacy" to fool you into believing that they are working for you. The term "advocacy" typically refers to a "non-profit" organization. And the DAC is all about making as much money as they can until they are found out. Remember this...The Government WILL soon force ALL lenders to modify consumer loans WITHOUT the need for a third party outfit like the Debt Advocacy Center.

They call themselves "Advocacy" to fool you into believing that they are working for you. The term "advocacy" typically refers to a "non-profit" organization. And the DAC is all about making as much money as they can until they are found out. Remember this...The Government WILL soon force ALL lenders to modify consumer loans WITHOUT the need for a third party outfit like the Debt Advocacy Center.

are you going with them

To everyone who says its possible to get a loan mod on your own:
EDITED DEROGATORY COMMENTSThe banks are so overworked right now, they don't even want to talk to professionals, let alone a crying housewife who blames the mortgage company for every single problem she's had in the last 3 years. If someone can afford to hire an attorney to get a response from their lender, then more power to them! $2000 is a fairly small fee when it comes to attorneys and it sounds like its a guaranteed service. I doubt any attorney would risk losing his license over a complaint for $2000, so you would be pretty safe going with them. Of course, try to do it yourself first and you might get lucky, but these types of services are for people who have obviously been unsuccessful up to that point

I lost my house a few months ago and I tried everything in my power to save it, including calling litton to try and get them to do a forbearance or loan modification. I spent at least 7 sold days on the phone with different people or preparing documents and it was all for nothing. In the end, they took too long to do anything for me, even though I could have afforded the payment. I wish someone would have helped me, but I didn't know who to trust so I just trusted my lender. Litton made me feel good about it while I was talking to them, so I didn't think I would need someone else, but they dropped the ball in the end. This is the worst thing that could have ever happened to me and my family and now we are living with my cousins and I feel like I was completely taken advantage of and used by litton. my house is just sitting empty and its rotting away and no one seems to care or want to try and help.

I used foreclosurefish before they were part of Debt advocacy center and they helped me save my house. My new payment was very expensive to start, but 3 months later they did a loan modification and it dropped a lot. Now it's affordable. My lender was countrywide, so i'm not sure how they compare to litton.

Been dealing with this company since January of 2008, in April I understand 3 count them 3 employees left. One was an Attorney and part owner I think the two others were Attorneys as well. Here it is November, they told me it would take no longer than 4 months and still no results. I lost 3000 dollars and for what? Be careful dealing with this company.

DAC is still working on my case, I just got worried because it's been so long. I'll let you all know the outcome.

I am working with the DAC right now and I feel that they have so far been upfront and honest with me. I have been totally screwed by Indy Mac Bank. They told me 1.5 months ago that they were willing to work with me and would modify my loan. My payment was lowered for 2 months after which they told me I did not qualify for any modification help. I asked to speak to a manager and they told me I did not qualify for a modification. I find it next to impossible to get ahold of anyone, so doing this yourself is going to be next to impossible. They won't even let you talk to a decision maker.
DAC is trying to make it possible for me to get my life back together. If I am disappointed I will let you all know.

You should try working with your lender first and give them time. I panicced and tried the Clev DAC. First mistake, I was
told and stated in contract if not happy all moneys would be returned. NOT..... Second, I first made down payment using a family members checking account and this DAC seems to think that they can come and go in their account now. NOT.... This is against the law. You should be ashamed. I didn't ask for the down payment back = but I should now. How do you sleep at night???

Forgot to add, if asked if I would recommend - the answer is NO..... lies and deceit that is what you'll get. They keep you hanging and keep collecting your money - why not send it to the mortgage lender instead of losing it to this company who preys on people who are in fear of losing their home.

I may be just a voice but someday you will answer to a higher power............

I am an experienced mortgage lender who has been in the business for more than 25 years. I have worked for very large mortgage companies and FNMA/Freddie Mac. If you are behind on your mortgage, contact the company that services your loan. Do this in writing. Explain your circumstances, and be honest. You will get the help you need without paying a middleman. The Debt Advocacy Center will only drag out the process and cost you more in the long run.

I did exactly what you suggested several months ago. I had over 1/2 the money I owed and my income could support the payment. I tried and tried working with americas servicing company, but they never did anything for me! I felt so abused by them and all I wanted to do was keep my home so my family didn't have to move. It makes me angry to read people saying it's so easy to work with the lenders, when I tried for over 6 months and still lost my home! I didn't hire someone to help, because I thought it would be better to pay that money towards the mortgage, but they just took my $6000 and I still lost my home. americas servicing company is a complete scam!

Here is the bottom line. Some people can afford to hire a company to work for them and some people can't. Like someone said earlier, there are no complaints at the BBB and an attorney will not risk his/her license for a few thousand dollars, so your investment in their services appears to be safe.

These companies can and will get a better deal than you, because they have more experience than you at negotiating with a lender. Anyone can argue this fact, but it's still true. Experience does count in this case! And being an attorney can't hurt either!

Lenders have a "standard" workout plan that they can offer anyone facing foreclosure. This is it: 1.5 payments up front, and the remaining arrears divided over the next 18month and added to the normal monthly payment. If you can afford this plan, then great, go to your lender and make the higher payments for the next 18 months.

If need a better plan, and you can afford to pay a professional, then that will most likely be a better option. The money you will save should easily make up the difference in their fees.

So to sum it up...go to your lender/servicer/bank and see what plan they have to offer first. When/if you find out they can't help, or if it seems like you are running out of time, then you need to consider hiring a professional ASAP!

have spent quite a bit of time this week calling big mortgage lenders to chat about their streamline loan modification program.

Here's what I learned:

If you have a Fannie Mae or Freddie Mac loan, AND you are 90 days + late on your mortgage, you can call your lender and request a streamline loan modification. That should trigger a 60-minute call in which the loan servicer talk to you about your loan modification options. THERE IS NO COST FOR THIS. In fact, Freddie and Fannie will compensate your loan servicer for assisting you.

The loan servicer will attempt to figure out if you can afford your loan if the interest rate is adjusted, or the term extended. They will verify if you have enough income to spend no more than 38 percent of your gross monthly income on your mortgage, taxes and insurance.

If you don't qualify, then you'll need something called a full loan modification. This is a more extensive interview process where the servicer will attempt to figure out if there is any way to save your house. Again, THERE IS NO COST FOR THIS.

If you are having trouble getting your lender on the phone, call the HOPE NOW hotline: 888-995-HOPE. The person who answers the phone will connect you in a three-way call with your lender to get the ball rolling. (Some of the folks who answer the phone at the HOPE NOW hotline are housing counselors from CCCS of Greater Atlanta.)

Unfortunately, Fannie Mae and Freddie Mac only have direct control over about 25 percent of loans out there. FHA has a big chunk, but about 60 percent of loans are held by investors who are all over the place. And, that's a big problem.

I hope this helps someone. The DAC reduced my monthly payment by over $2K. Our mortgage was a monster, and readjusted to 9.99%, giving me a payment of $8.6K. After working with The DAC, Chris, our negotiator, worked out a modification taking our 40 year ballon ARM, to a 30 year stepped program, starting at 5.3%, and finishing up at 6.3% (year 5) after which it is fixed for the life of the loan. The original servicing agent would not even talk to me, but Chris was a rock, and took us through this difficult, which could have cost me our $950K house. This cost me $3600, but was worth all that and a lot more. I owe Chris and DAC and testimonial that I hope they post on their website. Truly they did a fantastic job.

You are the exception not the rule. The DAC has screwed more people than they have helped.

We had tried to fix the problem with countrywide but they lied all the way until i got served with the foreclosure papers. Its been 4 months and we just completed the Loan Mod and it was worth the money. I had to work to keep a float. I could not believe the lender anymore. Our new rate is 5.25 for life which how long i will be in the house i guess. It worked for me. All the Government help was BS i called and some idiot got on the phone and the papers were never even sent to me. It was tough to put my trust in them but was worth it in the end.

DO NOT USE THE DAC or any other firm that promises to "fix" your problem for a fee. Obamas plan is wide ranging. Take a read.

More expensive than expected, Obama's plan aims to keep between 7 million and 9 million people from foreclosure. Of the nearly 52 million U.S. homeowners with a mortgage, about 13.8 million, or nearly 27 percent, owe more on their mortgage than their house is now worth, according to Moody's Economy.com.

Headlining Obama's plan is a $75 billion Homeowner Stability Initiative, which would provide a set of incentives to mortgage lenders in an effort to convince them to help up to 4 million borrowers on the verge of foreclosure. The goal: cut monthly mortgage payments to sustainable levels, defined as no more than 31 percent of a homeowners income. Funding would come from the $700 billion financial industry bailout passed by Congress last fall.

Another key component would specifically help those said to be "under water" ??? with dwellings whose market value have sunk below the principal still owed on the mortgages. Such mortgages have traditionally been almost impossible to refinance. But the White House said its program will help 4 million to 5 million families do just that ??? if their mortgages are owned or guaranteed by Fannie Mae or Freddie Mac.

Housing Secretary Shaun Donovan stressed that homeowners don't need to be delinquent in order to get help.

What about home owners with two mortgages? no help from obama
What about home owners with a loan over 417,000? no help from obama
What about homeowners who have stated incomes? no help from obama
What about homeowners that can't afford 31% of gross income for PITI?

No help for me, thanks obama

Quote:

I hired them and I'm very disapointed!!!!!!!!!!.
Don't hire them,it's a big BS.

they don't evan response to you.I will sue them for my money!
and will report them to the DA office

I hired them and I'm very disapointed!!!!!!!!!!.
Don't hire them,it's a big BS.

I hired them and I'm very disapointed!!!!!!!!!!.
Don't hire them,it's a big BS.

has DAC hepled anyone with their loan?

Let me preface this article by saying although this is a warning from the Ohio AG, it's message spans all 50 States.


Ohio attorney general warns of foreclosure rescue scams



RELATED LINKS

SpeakOutOhio



By ARIELLE KASS

2:13 pm, March 4, 2009



Ohio Attorney General Richard Cordray is warning residents to beware of foreclosure rescue scams.

In a statement, Mr. Cordray said the passage of the federal Homeowner Affordability and Stability Plan likely will lead to an increase of scams in the state.

???Under no circumstances should borrowers pay any company any dollar amount to gain the benefit of this plan,??? he said. ???Con artists tend to prey on the financially vulnerable. Ohioans should arm themselves with knowledge and recognize their rights.???

Those who think they have been the victim of a scam can contact the attorney general???s office via the web at SpeakOutOhio.gov or by calling 800-282-0515.

I used the Debt Advocacy Center because I had hit a hard time and was going to lose my house.

The woman who negotiated for me got me an unbelievably good deal with my mortgage company. She was also available to me anytime I had a question or was just worried it wasn't 'going to work'.

The whole process took less than 60 days.

Homeowners seek aid from nonprofit that offers mortgage restructuring on 'Save the Dream Tour'


COLUMBIA, S.C. (AP) -- Philip and Gloria Spigner saw their monthly mortgage payments climb from $800 to $1,300. Carol and Butch Dycus have received foreclosure notices though they say they're not behind on their payments. And Tony Jumper's mortgage hasn't changed, but 26 people were laid off this week from his job.
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They were among the hundreds of people who gathered here Friday to seek advice from a nonprofit group that finds ways to help at-risk homeowners lower their mortgage payments.

It was the third stop on the Neighborhood Assistance Corporation of America's nationwide "Save the Dream Tour," which offered mortgage restructuring help in Washington, D.C., last year and in Stamford, Conn., last month. The nonprofit also plans to visit areas hard-hit by foreclosure, like Florida and California.

Using paycheck stubs, interviews and tax filings, NACA counselors calculate what struggling homeowners can afford to pay, then negotiate with lenders who have signed agreements with the group.

Around 10,000 people had registered for the free counseling service before the event began Friday and a total of 20,000 were expected to participate over three days, said organizer Carmon Orta.

"Everyone is in an unaffordable mortgage right now whether it be that they were in a predatory loan and got duped into a bad interest rate or because of the economy they have a job loss," she said. "We will go to the lender's CEO's office. We will go and do what we have to do to sit with them until they sign a contract with us and agree to have real solutions and modifications for people."

U.S. House Majority Whip Jim Clyburn, D-S.C. and a fan of the group, said such efforts will help stabilize families and give them hope.

"And I think it will do a whole lot to help get this country back where it ought to be," he said.

Some lenders are beginning to recognize the problems with the foreclosure process and working with several nonprofit groups to restructure mortgages, Bank of America spokesman Rick Simon said.

"We're now looking more and more at the cost of going to foreclosure," he said. "And knowing what that cost is -- and it's tens of thousands of dollars per foreclosure -- it doesn't make much sense in today's environment."

NACA boasts of lowering the mortgage payments of more than 90 percent of the people who seek their services.

Carol Dycus hopes she's next. The 64-year-old, who can't work because she had a heart attack, said a prayer before leaving her Newberry home around 6 a.m. Friday and making the 40-mile trip to the Carolina Coliseum in the state capital.

It's been hard for her and her 59-year-old husband to make their mortgage payments, which increased under an adjustable rate from $569 to $624. The couple made the payments but still received foreclosure notices -- a mistake that's happened before, Carol Dycus said.

Now, after months of trying to talk with their lender, they're ready to try another approach.

"It hurts," Carol Dycus said, showing three months of receipts for payments she says the mortgage company insists never arrived. Lenders "have a lot of money. We don't. My husband works every day -- sick or well ... it's hard on us."

Philip and Gloria Spigner hope they won't have to leave the Columbia home where they raised their children.

"We're hoping after this that our adjustable rate won't be adjustable anymore," said Gloria Spigner, a 64-year-old nurse.

"All we want is a solution and to hang on to our home," said Philip Spigner, a 52, an assistant manager at a restaurant. "We want to put some money into the bank and be able to do some other things besides struggling every month to make the mortgage payment. That's all we want."

Do not use them!! After hiring DAC, I was still getting calls and letters from the lender so I asked my so-called rep to provide me with documentation on what he has done for me to date so I know that I am getting what I paid for. He didn't give me anything, and kept emailing me to call him (long distance may I add) so he can talk to me. I didn't want talk; I wanted proof. Now, they will not return my money. I told him up front that I have a chronically ill child and I cannot afford to lose money and he said they could definitely help me. He obviously did nothing the 3 to 4 months he was suppose to be working on my case except put me further in debt. I have no money at all for emergencies as I went through all my savings and 401(K) to live and pay DAC over $2000; money I could have had for emergencies for my child as we are in the ER at least three times per year. I told the rep all about my situation and that I really couldn't afford to be ripped off. See how much the DAC cares about the consumers!?

WASHINGTON ??? Top federal and state officials on Monday announced a broad crackdown on mortgage modification scams, accusing "criminal actors" of preying on desperate borrowers caught up in the nation's housing crisis.

Government officials say scammers are seeking to take advantage of borrowers in danger of default. The frauds often involve companies with official-sounding names designed to make borrowers think they are taking advantage of the Obama administration's efforts to help modify or refinance 7 to 9 million mortgages.

Officials say such operations almost always are fraudulent, and that help is available for free from government-approved housing counselors.

"These predatory scams callously rob Americans of their savings and potentially their homes," Treasury Secretary Timothy Geithner said Monday. "We will shut down fraudulent companies more quickly than before. We will target companies that otherwise would have gone unnoticed under the radar."

The Federal Trade Commission has sent warning letters to 71 companies it says were running suspicious advertisements and has filed five new civil cases to halt illegal loan modification scams. Attorney General Eric Holder says the FBI is investigating about 2,100 mortgage fraud cases.

"If you discriminate against borrowers or prey on vulnerable homeowners with fraudulent mortgage schemes, we will find you, and we will punish you," Holder said.

Over the past year homeowners have been flooding state attorneys general with complaints about for-profit loan modification consultants. While some are legitimate, authorities say many are con artists.

Roadside billboards in places like Las Vegas scream, "Save my property!" and radio ads promise "expert help." Some companies comb property records and send mail designed to look like it is from the homeowner's lender.

Some of those making the offers to help are former brokers, agents and appraisers who've seen their previous business evaporate. But it's difficult to gauge if even the legitimate consultants are more effective than nonprofit credit counselors who also work with lenders at no charge.

Some states recently have toughened penalties for perpetrating foreclosure scams, and some prosecutors have used existing fraud statutes to bring criminal charges. But many state prosecutors have not filed criminal cases, instead proceeding with civil lawsuits.

Does anyone have any real information about the debt advocacy center? One person seems to be leaving many negative comments and there are a few good ones, but most of the comments on here have nothing to do with the debt advocacy center, just general warnings from people about foreclosure help scams that may or may not be related.

EX-EMPLOYEE here saying RUN DON'T WALK. How much more info do you need?

i too worked with DAC and cannot say I actually know of any fraud but can say the contract that clients sign was written via blackberry while the owner was waiting for a flight.... possible has been revised by now, but the "owner" mr davidson employs some very interesting people to do his biding to say the least, former real estate agents and the office is based in cleveland, he is lisenced in illinois and they are the office in florida is strictly sales they fwd the file up north and leave the clients in limbo....

too add to my last post above... the fees are OUTRAGEOUS. The accounting system.. a joke.. payments sit in a box on the floor and there is no rhyme or reason to them. The coked out "sales manager" is also who f*** his partner in the a** and sent the one legit person involved packing, in danger of not being able to pay their rent for their office space at one point. some people were helped by them, some people were mislead and mischarged.. they go by another name too .. do your research

Hi there,
My husband and I used the debt advocacy center last year they helped us save our house and got us a 4.25% intrest rate and saved our home at the time we started with this company we were alreay 6 months behind. I would tell anyone to use them they are great and kind peoople..I hope this helps

Im not saying they rip everyone off but they promise MORE than they can deliver! Glad you got yours saved.

In 2008 said soon Gvt will force lenders to do it... Nope- Not yet, Was that timeley enough to save your home from foreclosure? The other "expert" said we would be out of business... Nope. Lots of bad companies out there- One competitor has 162 complaints on the BBB the last 3 months. We are NOT those guys. They are cheaper tho- try them...

Mortgage lenders don???t try to rework most home loans held by borrowers facing foreclosure because it would probably mean losing money, a study released yesterday by the Federal Reserve Bank of Boston concludes.
The Boston Fed???s findings suggest the Obama administration???s major effort to solve the foreclosure crisis by giving the lending industry $75 billion to rewrite delinquent loans to more affordable levels is not likely to work.
One of the study???s coauthors, Boston Fed senior economist Paul S. Willen, said the government would be better off giving the money directly to struggling borrowers to help them with their payments, rather than to lenders that are averse to working out the troubled loans.
???Loan modification is not profitable for lenders,?????? Willen said. ???If it were profitable, they would go out and hire staff.??????
US Representative Barney Frank, head of the House Financial Services Committee, said the study results may provide answers about why so few struggling homeowners have been able to get help.
Frank, a Newton Democrat, said he is holding a hearing Thursday on his proposal to provide government loans to homeowners who have lost their jobs and can???t qualify for loan modifications and other help because they don???t have income.
???The problem is worse than we thought,?????? Frank said. ???The failure to do these modifications means the whole situation stays bad longer.??????
The Fed???s study found that only 3 percent of seriously delinquent borrowers - those more than 60 days behind - had their loans modified to lower monthly payments; about 5.5 percent received loan modifications that did not result in lower payments.
The study focused on 665,410 loans that were originated between 2005 and 2007 and subsequently became seriously delinquent. It also followed about 150,000 borrowers for six months after they received help, through the end of 2008.
The lenders may have compelling reasons not to find new borrowers to help, according to the study. For example, up to 45 percent of borrowers who did receive some kind of help on their loans ended up in arrears again, the study found. Conversely, about 30 percent of delinquent borrowers are able to fix their problems without help from their lenders.
???A lot of people you give assistance to would default either way or won???t default either way,?????? Willen said. ???They are trying to maximize profits, and at this point maximizing profits does not mean modifying loans.??????
Officials from Hope Now, the private-sector alliance of mortgage servicers and investors, were unavailable for comment yesterday.
US Treasury officials declined to comment on the Fed study, but noted in a statement that more than 240,000 homeowners have received loan modifications this year under the president???s program. Moreover, federal regulators said the pace of loan modifications has been increasing steadily since last year.