I’m in a situation right now where my credit issues are being questioned because of my security clearance. I first made arrangements with the vehicle collection agency to settle the amount of $5080.00. I have made the first payment and received paperwork asking about my credit situation from the Government. In feeling very pressured to do something about my issues, I contacted Mossley Law Firm. I found you blog today and am completely shocked at all the stuff I have read thus far.
Back in 2005 my husband & I bought a home and a new vehicle. Six months later my husband lost his job. I immediately called the finance company to come get the new vehicle. Six months after that, our home was foreclosed on.
When we originally purchased the home for $145,000.00, the loan was in two parts, one for $116,000.00 and one for $29,000.00. The home was sold on the steps of the courthouse for $120,000.00. The larger of the two loans was paid off but not the smaller one. The person that bought the home from the courts turned around and sold it for the same price as we bought it for and the new buyers obtained the same type of loans as we did with a different lender, (it was in two parts).
I was told by the first collection agency and the Title Company that we were not responsible for paying back the second loan, but I have yet to see anything in writing and have come to dead ends.
My questions to you are:
1) Am I able to back out of this deal with Mossley Law Firm?
2) What do you think is the right approach to the mortgage issue?
Thank you for your time & efforts, they are Greatly Appreciated.”
In my opinion I would think that a debt settlement approach would look far worse than a bankruptcy. See this article that discusses bankruptcy and security clearances.
With bankruptcy you are taking a government approved and legal step to resolve your debt situation quickly. With debt settlement your credit report will show an ongoing cycle of delinquent debts and that could leave you appearing more susceptible to being a security risk by bribery.
Ultimately the best advisor on this will be your security officer you work with.
If you are not happy with the firm you are working with then by all means you should cancel your contract. If they have performed no work for you yet then ask for a refund.
If you pursue bankruptcy to deal with the debt then you can wrap any residual liability you may have for the rest of the mortgage debt and your other unmanageable bills.
The forgiven mortgage debt is a problem and others have been sued by banks to recover these funds. Unless you have something as writing as proof then there is no deal.
I’m not sure I’m familiar with the Mossley Law Firm but from what you write I assuming they are providing debt settlement services to you. Is that right?