I applied for a loan mod through Wells Fargo. Got a letter in the mail today with a lowered payment plan for 3 months and then a big balloon payment on the 4th month. Called to ask about this and they said that if you make the three smaller payments on time they will then re-evaluate your financial situation and if it is still in hardship will then grant a loan modification. Does this sound right to you?
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.