Consumer Advocacy

Are you struggling with an unaffordable mortgage or drowning in unsecured debt? The law firm of Chayet & Danzo, LLC, can help you regain financial independence and peace of mind. Our debt settlement attorneys help people overcome financial hardships and get back on the road to financial stability

Contact us today to set up a free consultation with our Denver consumer advocacy attorneys. Call 303-872-5980.

What Is Debt Settlement?

Many people confuse debt settlement programs with debt management. Our program helps you repay debts by negotiating the amount owed on your cards, not the interest rates. We can often settle debt down to 30-50 percent of the balance, saving you thousands of dollars in interest.

Our program gets you out of debt sooner than debt management or debt consolidation programs. Our clients typically get out of our program in one to two years. Debt management clients don't usually end their program for five to seven years.

Our Debt Settlement Services

Your financial situation will be reviewed by a debt settlement attorney to assess your case. We do not take a client unless we think we can successfully get him or her through our program.

It is critical to understand when and how various fees will be charged to you when you start any debt settlement program. The fee structure alone, will tell you whether you are dealing with a reputable company. Be very careful of any company that charges large upfront fees, regardless of success, such as those that charge a percentage of total debt owed. Once these companies get their money, they have little to no incentive to work hard for you.

We only charge fees when you save money. Our fees are calculated at 15 percent of the savings we negotiate for you; you get 85 percent of the benefit of our negotiating expertise. There is also a $100 set-up fee per creditor. This is to set up the file and to take phone calls from that creditor that would normally go to you.

Benefits Of Debt Settlement

We can stop the majority of creditor calls: Once you join the program, we can send each creditor a "cease communications" letter that instructs them to communicate with you only in writing. If you are called, simply tell them that you have hired a debt management firm to deal with your debts and give them our name and phone number. Give them no further information and ask them to communicate with you only in writing.

Often, creditors will mail settlement offers directly to you once they know you have hired us. We ask that you read and forward all your mail to us, and especially report any settlement offers to us promptly so we can discuss them and try to negotiate a better settlement.

Paying creditors: You will pay only those debts that are not included in our program, such as your car payment and your mortgage. All other payments will go through our office.

It is in your best interest to settle your debts as quickly as possible to avoid a court judgment. One risk of a settlement plan is that you could be sued by a creditor during the term of the plan and not have enough money saved in your Trust account to settle the lawsuit in a lump sum at a discount. If this is the case, you may have to consider filing bankruptcy at that time.

We take into account how long it will take each creditor to sue you based on our experience, and prioritize the settlements accordingly to minimize this risk. Also, if you do get sued, we can set up a temporary payment plan with the creditor to buy some time to consider whether bankruptcy may then be appropriate.

If you get sued: Bill collectors have only one way of getting paid: suing you. If you do receive a summons to go to court and do nothing, you can be assured that you will receive a default judgment against you. The collectors became very aggressive once this happens and may garnish up to 25 percent of your net wages. They can also seize any bank or other deposit accounts you have, and/or possibly record a lien on your property, which will have to be paid when you sell or refinance your property.

If you get sued by a creditor, which may happen, just contact us. We will focus on settling that debt immediately. We will then settle the case out of court, so you don't have to be an active part of a lawsuit. If we cannot settle the debt, you will have to consider bankruptcy at that time.

Home Loan Negotiation

It's extremely difficult for most homeowners to renegotiate their loan directly with the lender. Lack of experience, not knowing lender's procedures, not knowing qualification guidelines or necessary paperwork, and the large number of calls required to generate a response back from the lender are all impediments to success. Homeowners need a professional on their side so that their case is pursued effectively and not lost in the system.

At Chayet & Danzo, LLC, our sole goal is to keep you in your home with an affordable monthly payment. While the Obama administration's $75 billion foreclosure-prevention program will help some homeowners, many people won't qualify under the proposed guidelines. We will review your situation and advise you whether you will qualify.

When you hire an experienced loan modification attorney from our firm, the first thing we will do is review your case looking for flaws such as violations of the Real Estate Settlement Procedures Act (RESPA) and the Truth in Lending Act (TILA) laws that may have occurred during the origination of your loan. We may be able to use these as leverage to negotiate with your lender.

If a loan modification can be accomplished, we will help you complete all required documents. A correctly completed financial statement is the most important document your lender will require to modify your loan. Your lender will not instruct you on what they are looking for on this document or how to fill it out correctly and yet if this document is not completed correctly, your modification can be denied immediately.

We collect and analyze the financial information to ensure the financial statement is a true reflection of your situation, and qualifies you for a mortgage loan modification. We will review your financial status, net cash flow and gross income.

Another document that will need to be submitted to your lender is the hardship letter, which explains the circumstances that have affected your ability to pay your mortgage in a timely manner. If completed incorrectly, this document can cause a denial of your modification from your lender. We help to prepare this document with our clients.

Once the modification documents are completed and the supporting documentation is collected from the client, we submit the modification request to the lender for approval.

After your package is submitted, it may take five to ten calls to make sure it has been received and assigned to a responsible person or team. Once the lender receives the package and acknowledges receipt, the real work starts. Once the lender has completed the review and processing stages, the next step is to reach an agreement with the lender/servicer. This requires expertise.

Assuming the process went well, you will most likely receive a Trial Modification Agreement from your lender. This could include a reduction in interest rate, reduction/elimination of the penalties, forbearance, principle loan reduction or a combination of these items.

We review the Trial Modification Agreement to verify that it matches the terms we requested, and we review the document with our clients prior to them signing this form. We return the signed agreement to the lender with any additional documentation they request. Again, we will follow up to verify that the lender received the documents sent and that there is nothing else they require. We will also follow up on the monthly trial modification payments to verify the lender received them and applied them correctly. Trial modifications usually last for three months. You should receive your permanent modification within 60-120 days (but it is a case-by-case situation, with some loans faster, and some slower).

Foreclosure Defense

Due to the depressed economy and the poor housing market, foreclosures are a growing area of concern. We represent homeowners facing wrongful foreclosure. We object to and appear at the Rule 120 Hearing. We file for Injunctive Relief to stop the alleged lender from foreclosing without providing the proper legal due diligence of establishing that they have a right to foreclose on the property. We have been success dealing with these issues.

Loan Negotiation FAQs

Q: Is it possible to get a loan modification if you are currently unemployed?

A: No. In order for your loan modification attorney to help you qualify for a loan modification, you need to have a source of income. Your loan modification attorney will count the total income of your household, not just the income of the person whose name is on the loan.

Q: Do I need to be delinquent or behind on my mortgage payments?

A: Loan modification is meant to help people who are currently having financial hardships and lenders seem to be more willing to help borrowers in trouble.

Q: Is it possible to get a loan modification for properties that are rental properties?

A: Your loan modification attorney can evaluate your situation and let you know what is possible. Often the answer is yes.

Q: Is it too late to help clients who have received a Notice of Trustee sale?

A: Your loan modification attorney may be able to prevent foreclosure up to a few days before the actual transfer sale date, although this is not guaranteed.

Q: What interest rates can I expect after a loan modification?

A: Most clients who work with a loan modification attorney have gotten interest rates between two percent and five and one-half percent.

Q: Will my lender need other documents (such as credit scores) to assess my application?

A: Besides the pay stubs and tax forms, some lenders will ask for at least two months of bank statements. Credit scores are never used for qualification.