The reason I suggested going to the student loan forum is that the person there says that federal vs private loans are VERY different loans. I think the original person said these are private student loans, and if so they do not behave like federal loans...no rehab....due in full...and no sol. If they take wages then you will have to pay the house and the student loan. There will no longer be a choice. This is my assumption based on what I read on the student loan forum.
rodrain2- I m the co-signer, and we have NO equity in the house, we got a no money down house loan, with our income, it wasnt a problem making the payments, and a good credit history, and no reason to believe we wouldn't be able to create a large amount of equity but then the area started going down in value ( I live in MIch) and then things went down down down, scince like I said, we have nothing into the house, nothing down, no equity, we could re coup eslewhere (renting looks good these days), and with major losses on wall street, we have lost most of our savings, were in our 50's, so--- my daughter has decided to go back to school, I would rather pay her tuition,she would only need to go part time., put the loans into deferrment, she will pay what she can onto the interest, but we will have to go rent somehere cheaper... Anyways, thats what were thinking.open to any suggestions. Spooky
Raven13, That is a HORRIBLE story!! Theres always somene worse off, I will pray for him. I am coming to the same conclusions about the SL vs foreclosures. I just posted a response to this, it explains in detail what were thinking of these days. Ty again, & God bless SPOOKY
Iuven637- Ty for your answer, what would happen if I paid abit (1/4-1/2)of the min. payment irregardless of what SM wants, what would SM do then ? What could they do ?? If I am consistantly paying EVERY single month,and its always on time ! what are they going to do ? give it back and say its not enough ? NOT a Chance- scince when will any company do that.!! Anyone?? spooky
keep the mortgage current. call consumer credit counseling if the sudent loan lender won't work with you directly. they may get a judgement and attach house but most states won't allow a forced sale of home, it is just an insurance for the lender that they would be paid if you ever sell the house and still haven't paid the student loans. some states dismiss a judgement completely after 6 years irregardless of whether it is paid or not. defaulting on an unsecured loan leaves your credit report much sooner than a foreclosure and a house is future wealth, you will need housing no matter what.
09-30-200808:31 PM - last edited on 09-30-200808:51 PM by Timothy
I am a mortgage loan officer and credit analyst working in California.
Yes, you are in a bad situation.
Many of the replies were interesting.
Defaulting on a student loan is a federal debt. It cannot be discharged in bankruptcy. Any judgment will remain on your record for 10 years and pull your scores down more than a foreclosure will.
That being said:
A loan modification would be in order here. Given the current state of housing, getting one might be a lot easier in the next 90 days.
I liked the idea of being late on your student loans......it dos put them into rehab. After six months of perfect payments, I have been able to negotiate with them to re-age the account. (remove any lates)
You could have both, with some good advice.
Contact me at [removed] and I will be glad to discuss your situation.
Regardless, I hope this helps. I wish you the very best!
Mary, I really appreciate th advice, I have been on this forum for about a month loosing my sanity, the honest truth is we are looking for a renter so we can move closer to my husbands job, he puts 2000 miles amonth on his car, and we would like very much to move out to where he works, he spends 3 hrs a day commuting. Also we owe 209K on the mtg, the comps for my area of about 10-15 mi radius is about 210K, we put no $$ into getting in here in 2005, If we could maybe get a renter to pay, then we would rent a place out by his job. The prices look good. The private st loans from smae are very large, SO--- Any help on this is very appreciated. I guess what I am saying that loosing the house is bad, but I think scince we didnt put up anything, and were are willing to live with renting probably for a very loing time, I would love to NOT foreclose of cours, I would rather default on my ST Loans. I need your expert advice. Spooky
Please read the prom. note that was signed and verify if the loan is federal or private. All this information about rehab and different programs that people are telling you about are for federal student loans only . Private student loans do not have to offer this (and often don't). A lot of people have tried and failed with private loan. Once the loan is in default, it cannot be brought current with monthly payments. The interest rate can go sky high. It becomes due in full and not considered current until paid in full. There is no SOL and they cannot be included in bankruptcy. If this loan is federal, forget everything I just said. It is very important to find out the difference.
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