How Mortgage Debt Counselors Help Borrowers Get Debt Relief

When people are in financial difficulties, such as increasing debt burden due to loss of income, it can be a major source of stress. In such times, people are susceptible to falling into a debt trap. Or they may make uninformed decisions, which could lead to avoidable losses. An example of such a decision is selling a property at a much lower rate than the market rate. Mortgage debt counselors play a valuable role in helping such people with a debt settlement negotiation. In this article, we look at how mortgage debt counselors help provide debt relief to borrowers.

What is Mortgage Debt Counselling?

Mortgage debt counselors provide borrowers credit advice based on their unique situation. Professional mortgage debt counselors have experience in dealing with individuals burdened with debt. They can provide tailored advice, which can be a win-win for both the borrower and the lending bank.

Things Mortgage Debt Counsellors Do

Here are some of the key functions of mortgage debt counselors.

Understand the Debt Challenges of Borrowers

Every borrower’s case is unique. For example, some borrowers may have lost their jobs and are unable to meet their mortgage payments. Some borrowers have already missed some payments and are facing legal action from their lenders. Some have gone as far as facing a travel ban, restricting their movement outside of the UAE.

Also, different borrowers are at different stages of their loans. For example, some may have taken a mortgage recently. Some are on the verge of clearing their mortgage before they got hit by a debt crisis. Mortgage debt counselors understand the challenges of borrowers in detail to be able to give them sound advice.

Collect the Required Information for Debt Settlement Negotiation

Next, mortgage debt counselors collect the required documents and information from borrowers for bank debt restructuring. They would collect power of attorney from the client to discuss negotiation with banks. They would also require collect information such as the borrowers’ source of income, list of assets, and outgoing expenses. Based on this information, they would create a proposal to settle the debt and make a formal request with the bank.

Negotiate with Realtors

At times, when borrower’s liabilities are far greater than their assets, selling the property is the only option. In such cases, mortgage debt counselors help borrowers by negotiating the best prices with realtors. If borrowers sell their property on their own when they are stressed with debt, they may or may not always get the best deal. Mortgage debt counselors help such borrowers by analyzing the property’s market value, selling the property, and subsequently settling their debt.

Special Support in Case of Delayed Projects

Mortgage debt counselors also support borrowers in unique cases such as delayed projects. In such cases, debt counselors meet the realtors and negotiate options such as issuing a refund or swapping the property with another one. Subsequently, they initiate a debt settlement negotiation with the bank to help borrowers get freedom from debt.

Contact FREED for Bank Debt Restructuring

Using the services of a mortgage debt counselor is much better than trying to resolve the debt situation alone. With experience, debt counselors can provide the right advice for your needs and help you prevent from making mistakes made by others.

FREED has an experienced team of mortgage debt counselors with 40+ years of management experience. FREED has helped hundreds of borrowers with different debt challenges get freedom from debt.