Many people, following the real estate bubble and burst have found themselves with not only credit card debt but homes and other assets that they are “upside-down” on.  Not only that, as with their credit card debts, they cannot afford to maintain the payments on these homes and assets.  Most solutions deal exclusively with unsecured debt (including Bankruptcy, your secured debts will still go to foreclosure. You don’t get assets free and clear in bankruptcy).  The options that are sought (or not, as they are the eventual automatic result of non-payment) usually include foreclosure (real property) or repossession (vehicles, other mobile assets).  This again looks bad on credit(which can be more difficult to clean off)  and puts you in a lose-lose situation with your assets.  You may be looking for and even finding options for your unsecured debts but feel left high and dry with your secured debts.

The new “rage” and solution is what most call “short sale” which is what we call deficiency negotiation.  This is not only a solution for homes and property but has extended to other assets such as vehicles.  PlanB has nurtured relationships that allow our clients to work with a highly experienced deficiency negotiation specialist on both homes (or property in general), and vehicles!  This provides an all-encompassing solution to the debt troubles of the current economy.  Whether you utilize PlanB or others, these options are a great alternative.  You are able to live in the home or drive the car until an agreement is reached, all without making payments (as this can hinder negotiations).  This does not mean they do not have the right to pursue foreclosure or repossession but are less likely due to your efforts in negotiation.  Once the deficiency is negotiated, you will basically be “forgiven” the amount above what the property sells for.  This allows you to get out from underneath the secured debts without foreclosure and is reported as a sale, paid-in-full, or “settled for less than owed” (which in our solutions we avoid, preferring the “paid in full” reporting status on your credit.  This is negotiated in the settlement).  You also do not pay anything extra in these solutions as any fees are negotiated with the banks similar to a real estate agent would normally receive fees from the sale.  Since you are upside down on the asset, you cannot “make” money anyway so allowing a specialist to assist you is a win-win situation.

Does anyone have any experience with other companies or know of other companies that offer solutions for secured debts?  If so, what is your impression or what has been your experience? Have you been able to do it on your own? How did that go or how has it gone up to now?