Expert: Ontrack Financial Group llc - 7/25/2008

Question
Hello.  I would really appreciate some advice.  Here we go..

We moved to Carson City, NV after Hurricane Katrina.  Bought a house hoping to turn it in 2 years and have enough to put a little money down on a home back in Mississippi.  Invested 20K plus in the home.  Put the home on the market.. it sat for a year.  We moved back to Mississippi.  This home went into foreclosure.  There is a First and a Second on this loan.  The First Foreclosed and got their money.  The second didn't get a penny and are now coming after us for 91K.  After talking to a representative of the company (Wells Fargo) they quickly made an offer to settle at 41K.  The want it paid in 5 years.  We can not afford this.  Do you think that they will go lower?  Should I make a settlement of this sort?

Please keep in mind that I do have a few assets left that I would like to protect.  We own a commercial property, 2 lots of land and a cut of a little cabin joint ownership with my husbands brothers.

In addition to this we have 60K in CC Debt.  After consulting with a Bankruptcy Lawyer, I felt like he was not there to help me.  I started talking with my creditors.  Since then I have made a settlement with one credit card.  Put 4 credit cards into a 5 year 0% pay back plan.  1 Credit card is in a 5 year .99% pay back plan and the last one just has me on a 10 month partial payment at 8% until i can figure out what to do with it... they do not offer settlement or the 5 year program.  Am I doing the right thing with the credit cards?  Should I be doing something different?  Even with the cc in a program it is costing me 1K a month which is going to be hard to deal with.... for 5 years!!!

These are my headaches.  Please give me advice!!  Thank you so much!

Carlisle

Answer
Carlisle,

Wow you are going through(have gone through)so much!  We admire your strength!


Wells Fargo will offer a better settlement they may even take payments on the settlement.

Even though the credit card companies have reduced the payment amount their program may not have your best interest at hand. 1k a month is a lot of money to send out to your creditors.  

What's your total past due obligations?


Sincerely,

Ontrack Financial Group
Senior Consumer Credit Arbitrator
Michael Moore

Mike.Moore@ontfg.com