Hi,
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 [removed]
Message Edited by Timothy on
09-30-2008 08:51 PM