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Debt Recovery in a Tough Economic Climate

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At Canadian Corporate Legal Services we take a kinder gentler approach to negotiating for debt recovery. Our method is to avoid alienation when working with people and companies who owe our clients money and try not to alienate them. Due to the current economical crisis people who owe money are generally nervous about unfair debt collection. Hostile phone call and letters is not an affective method and can be emotionally draining for both parties. Our approach is to appeal to their morals and good nature while of course pointing out the additional cost and consequences of not clearing the outstanding balance. Our negotiations for debt recovery are often effective but if not we have the option of court to find the best way to proceed.

Many of our long-term clients come from companies that we have previously negotiated with successfully for debt collections. A proof that our kinder gentler to negotiating for debt recovery approach can work for your company as well. We like to work with our clients internationally to help them manage their account receivables and bad debt load. Here are some things to consider. Consider your CREDIT:

C ash Flow

Do you have the necessary cash flow?

R eceivables

Do you have a system?

E valuation

How do you assess your customers ability to pay?

D ebt

How do you collect overdue accounts?

I ncome

Does your price reflect the price of granting credit?

T erms

What terms are normal for your industry?

If you have a question about an outstanding debt or your accounts receivable issues please call at: 416.784.3770 or email us at .

What Is Mortgage Acceleration

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The typical homeowner may think that mortgage acceleration is the act toward reducing the indebtedness on residential property by making larger repayments or more frequent ones than the loan contract requires. The short answer would be this is correct. Mortgage acceleration simply put means to speed up the process for paying off the loan. The part that becomes a little vague, or downright mysterious, is just what method is the most effective to accomplish this.

Creative Methods for Mortgage Acceleration
There are several hot methods that have hit the mortgage marketplace in recent years that make even 15-year fixed rate mortgages with bi-weekly payments look like financial dinosaurs. Although critics of these financing methods claim them too good to be true, the actual review dictates that when conducted with the proper information and education, many of the proposed goals stated from applying mortgage acceleration tactics are reasonably achievable.

How Can These Practices Benefit a Homeowner?
Through restructuring a mortgage correctly, an average homeowner can repay the loan in seven to 15 years. There is no sacrifice in living expenses made and, in fact, can cut total debt in half. Hearing this statement elicits instant disbelief from most responders wondering if the statement is true, then why s it not prevalently known to all? Good question! Most believe there is some insidious catch to the practice, its probably fraudulent, illegal or, at best, quite unethical. Not true!

Mortgage History Shows Conservative Mindset
The lending of money has always been mostly a conservative activity. Yes, some venture capitalists take high risks lending money but require great rewards doing so. The home mortgage market has been relatively a conservative arena based upon business practices that basically benefited the lender first. Traditional mortgages 100 years ago called for a 50 percent down payment that our grandparents slaved years to save. Our parents faired a little better, but never dreamed of no-money down arrangements or ever saw a plethora of mortgage products such as adjustable rate mortgages or interest only mortgage loans. And more recently, use of negative amortization loans have become popular mortgage vehicles for short-term real estate investments. Traditional products like a 30-year fixed mortgage possess an amortization schedule that favours the lender. However, in recent years some clever people discovered inside lending institution secrets that could help consumers win the interest war.

Interest Only Mortgage Is Key
At the heart of any successful mortgage acceleration process is an interest-only loan. About 20 years ago in Australia, someone discovered that if an interest-only loan was obtained and repaid in a specific way will allow a consumer to pay down all personal debts three times faster than associated with conventional financing. It requires a great deal of discipline including gaining a month ahead for repayment of an interest-only loan and also associated depositing money, a pay check, into an interest-bearing account. Additionally, through making your loan repayments earlier than required, you can essentially prevent any additional interest from accruing.

Home Equity Line of Credit (HELOC)
This is the vehicle that allows a consumer to deposit money directly into an account that consolidates all your debt mortgage, credit cards, auto loans into one vehicle that allows you the draw off the balance of this loan using checks or a debit card.

Check with your trusted mortgage broker for greater details about mortgage acceleration.

Good And Bad Are A Matter Of Perception

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There is an infinite balance in the universe that equilibrates the ups and downs of life evenly and equally at all times. Like gravity or magnetism the balance is invisible to the eye and has to be examined and studied, to be brought out of obscurity into understanding. Sir Isaac Newton observed, for every action there is an equal and opposite reaction. While Newton was referring to the laws of physics his theories extend beyond the commonly accepted science to include the very fabric of the universe and govern the lives of each and every person living on the planet.

To put it simply good and bad exist in harmony together at all times and in all places, but it is a persons perception and perspective that create the illusion of things being either good or bad. If people understood perfectly the laws of physics that Newton uncovered they would begin to see that for every perceived bad circumstance, event or situation there is an equal and opposite good perception waiting to be identified and vice versa.

The economy may be down and people have lost jobs, but that is only the beginning. The housing markets have dropped because of the foreclosure rate that may be bad for those that have been forced to find alternative places to live, but on the opposite side of all the perceived negatives are the positives. People forced to move out of homes that they could not afford are finding that they can now manage their finances better as people that once thought home ownership was beyond their reach are buying homes that are now available at discounted prices. Even the banks and lenders are benefiting again by the drop in interest rates that are allowing people to take advantage of low mortgage rates and refinancing options that they could not expect to see before the economic downturn.

Veteran loans and refinancing options are helping people to have the good amid the bad and turn the economy around by extending home loans to people that are taking advantage of the positives with lower interest rates and home prices that may appear to be negative to some but that demonstrate an equal and opposite balance in reality.

While things have been dark there has always been an equal amount of light shinning in the darkness for those that have the wisdom to see both sides of good and bad and are able to see the balance that exists between the two polar opposites with unbiased perspective. Look for the opposite, believing that it exists and you will being to see the truth of Newtons law pertaining to the there being an equal and opposite force or action to every event, every situation and every circumstance that comes into existence. Reality is the balancing of perceptions and understanding that both opposites must exist together in order to sustain the unseen laws of the universe that support life.

Bi-weekly Mortgages Versus Mortgage Accelerators

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Bi-weekly mortgages are a good way of saving money on a home mortgage, but a mortgage accelerator is far more effective. Mortgage accelerator systems save far more money than bi-weekly systems.

Every month, most of your mortgage payment goes toward interest, and only a very small amount goes toward reducing the principal. If you could do something that would cause less of that monthly payment to go toward interest, more of it would go toward principal! Is this possible? YES!

How? Use a mortgage accelerator! It’s a method that makes more of your monthly payment go toward principal. If you think this means making bi-weekly mortgage payments, you’re wrong. Real mortgage accelerators don’t change your regular monthly payment but more of it goes toward principal, and less to interest. Basically, you’re earning money on your own mortgage!

Mortgage accelerators are misunderstood but don’t be put off. Not only do they work, but also, using one can cut the time it takes to pay off a 30 year loan to just 10 years, and save you hundreds of thousands of dollars. Banks naturally don’t want you to know this and how much better it is than a bi-weekly mortgage. Actually, bi-weekly mortgages only save about 5 years.

The best mortgage accelerators use the “Australian method”, so-named because it was first used in Australia in the mid 1990’s. Since then, many people in countries around the world have used it with great success. Still, in the USA, it is not well-known. But don’t be put off because it really works and can save the average homeowner a fortune in mortgage interest.

There are several companies selling mortgage accelerators, and some of them charge thousands of dollars. Still, they are all based on the Australian model and so all will work, so you don’t have to spend more than a few hundred dollars.

One of the best values is the Mortgage Magic System.
The Mortgage Magic System lets you use the bank’s money to your own advantage.

Using this System, you will owe less money to the bank each month, and more of your monthly payment will go toward paying down your loan – in effect, making money on your mortgage.

Here’s how it works: you are going to use your regular income to offset your mortgage loan by having your income reduce your mortgage balance. For every dollar of income, you will owe a dollar less on your mortgage.

By using your regular income to offset your mortgage balance, you owe less on your loan. As a result, you owe less interest for the period! But you also need your income to pay bills and pay for my daily needs. No problem, because you have access to it anytime you need it to pay your bills.

If you’re excited about a system that is so much better than bi-weekly mortgages,there’s more. You see, if you can pay off your largest debt (your mortgage) in about 10 years, you’ll have all those extra years where your monthly discretionary income will increase by thousands of dollars each month. You’ll be able to quickly grow your retirement savings over those years, instead of paying all that money to the bank each month!

You think this sounds too good to be true, but it’s not, and there’s absolutely no risk of using a mortgage accelerator. So, if you want to save money on your mortgage with a bi-weekly mortgage system, use a mortgage accelerator instead.

Mortgage Scams Lead to Debt And Harassment

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The Federal Trade Commission has stepped up its investigations and prosecutions of mortgage relief scam artists. Since the start of 2013, the FTC has obtained settlements from over 20 individuals and companies involved with scamming distressed homeowners. In the most recent cases, two individuals and seven companies settled FTC charges that they victimized more than a thousand people through “mass joinder lawsuits” and “forensic loan audits.” They violated the Mortgage Assistance Relief Services (MARS) Rule, which was set up to curb deceptive and unfair practices related to such services.

The FTC contends that Sameer Lakhany, Brian Pacios, Precision Law Center, Inc., Precision Law Center LLC, National Legal Network, Inc., and Assurity Law Group, Inc. targeted consumers with a mass joinder scam. They promised homeowners that they could stop their foreclosures or obtain some other mortgage relief if they joined together to sue the lenders. The defendants represented themselves as a law firm called Precision Law Center, charging between $6,000 and $10,000 in up-front fees. But every suit was dismissed soon after it was filed; the victims saw none of the promised relief.

One of the scam artists, Lakhany, was also involved in a “forensic loan audit” scam, along with The Credit Shop, LLC, Titanium Realty, Inc., and Fidelity Legal Services LLC. These defendants called themselves nonprofit organizations, with domain names like “FreeFedLoanMod.org,” “HouseholdRelief.org,” and “MyHomeSupport.org;” but really they sold people an auditing service, which supposedly found lender violations in mortgage documents. The defendants charged $800 to nearly $1,600 for this service, which never led to a single favorable loan modification for the victims.

The FTC settlements require the defendants to surrender many assets and pay $4.75 million in restitution. All except Assurity Law Group, Inc. are banned from mortgage relief and debt relief services; Assurity is required to surrender $100,000 in funds and has been ordered to cease any deceptive practices. In February, the FTC settled with another predatory group, composed of Ryan Zimmerman, Consumer Advocates Group Experts, LLC, Paramount Asset Management Corporation, and Advocates for Consumer Affairs Expert, LLC. These entities also used the forensic loan audit scam, and charged people almost $2,000 or more for the audits-they failed to make good on their false claims. Besides receiving a $3.5 million judgment against them, the defendants are banned from marketing relief services or products, and from making any misleading claims about any other type of product or service.

In January 2013, eight other defendants settled with the FTC, for selling fake relief services to distressed Spanish-speaking homeowners over the phone. The defendants-David F. Preiner, Daniel Hungria, Freedom Companies Marketing, Inc., Freedom Companies Lending, Inc., Freedom Companies, Inc., Grupo Marketing Dominicana, Freedom Information Services, Inc., and Haiti Management, Inc-collected over $2 million from people over three years. They simply didn’t provide the services they said they could. Part of this settlement, in which the defendants received a $2.39 million judgment, bans them from marketing relief products or services, and from making misleading claims about anything they advertise.