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Mortgage chances and advice? Just learned of defaulted student loans

Found out yesterday, why some of my student loans have been verified as defaulted even after my rehab. A couple of my loans were not picked up in the rehab! So I still have 2 defaulted federal student loans on my account, as well as 2 unpaid defaulted private student loans (Key Bank). This could put a major damper on my plans of purchasing a house next summer!!! So, I think I'm going to go ahead and spend an inq in Nov or Dec to work out with a loan officer if i'll qualify, and if I won't qualify, what steps I'll need to take to get me there. According to the bureaus, the Key Bank stuff is scheduled to fall off 4/2013.

 

Aside from the student loan stuff, all I have on my report is a paid charge-off with First Premier, which should also fall off sometime before June.

 

Thoughts?  Suggestions?

Last Hard Pull 05/24/2013

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Re: Mortgage chances and advice? Just learned of defaulted student loans

Seems like a good plan; although I'm not sure what impact the defaulted federal loans may have on you if you go with a government loan like Fha

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Re: Mortgage chances and advice? Just learned of defaulted student loans

You will have a CAIVRS entry which would cause you to be denied for any government loan program. Here is a site that can help you figure out your options. http://library.hsh.com/articles/government-programs/on-the-feds-deadbeat-database-heres-how-to-get-o...

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Re: Mortgage chances and advice? Just learned of defaulted student loans


webhopper wrote:
Seems like a good plan; although I'm not sure what impact the defaulted federal loans may have on you if you go with a government loan like Fha

That's kind of why I'm thinking of going ahead and taking a set of hard pulls now.  To see what it is I will qualify for, etc.  And to see if those loans need to be paid off right away, or if I can set up a payment plan.  If they need to be paid off ASAP, I'll hit up the LO for a loan to cover the full amount owed on the student loans, using my Mustang as collateral.

Last Hard Pull 05/24/2013

Starting Score: MyFico TU: 621 EQ: 610
Current Score: AmEx EX: 700 Walmart TU: 711 EQ: 699
Goal Score: 700's baby! (made it 4/10/2013!)
New Goal: 740!!


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Re: Mortgage chances and advice? Just learned of defaulted student loans


gijoe4500 wrote:

webhopper wrote:
Seems like a good plan; although I'm not sure what impact the defaulted federal loans may have on you if you go with a government loan like Fha

That's kind of why I'm thinking of going ahead and taking a set of hard pulls now.  To see what it is I will qualify for, etc.  And to see if those loans need to be paid off right away, or if I can set up a payment plan.  If they need to be paid off ASAP, I'll hit up the LO for a loan to cover the full amount owed on the student loans, using my Mustang as collateral.


 

That seems like a solid approach. He may be able to check CAIVRS for you to verify first that there is an entry. If there is no entry then you may be ok... have the LO check caivrs first before you submit to HPS

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Re: Mortgage chances and advice? Just learned of defaulted student loans


webhopper wrote:
That seems like a solid approach. He may be able to check CAIVRS for you to verify first that there is an entry. If there is no entry then you may be ok... have the LO check caivrs first before you submit to HPS

Will do.  I may just bring in my own copies of my report from my USAA credit monitoring account, just to talk to over with him.  That way, there isn't a hard pull, and he can still get an idea of what I'd be working with.

Last Hard Pull 05/24/2013

Starting Score: MyFico TU: 621 EQ: 610
Current Score: AmEx EX: 700 Walmart TU: 711 EQ: 699
Goal Score: 700's baby! (made it 4/10/2013!)
New Goal: 740!!


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Re: Mortgage chances and advice? Just learned of defaulted student loans


gijoe4500 wrote:

webhopper wrote:
That seems like a solid approach. He may be able to check CAIVRS for you to verify first that there is an entry. If there is no entry then you may be ok... have the LO check caivrs first before you submit to HPS

Will do.  I may just bring in my own copies of my report from my USAA credit monitoring account, just to talk to over with him.  That way, there isn't a hard pull, and he can still get an idea of what I'd be working with.


 

Are you eligible for NFCU membership... are you already a member of navy fed?

Starting Score: 08/29/2011 TU 671 EQ 674
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Re: Mortgage chances and advice? Just learned of defaulted student loans

no, i am not eligible for NFCU membership. i wish there was some way to qualify me to join, but I dont know of any. they seem to be VERY generous lenders.
Last Hard Pull 05/24/2013

Starting Score: MyFico TU: 621 EQ: 610
Current Score: AmEx EX: 700 Walmart TU: 711 EQ: 699
Goal Score: 700's baby! (made it 4/10/2013!)
New Goal: 740!!


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Re: Mortgage chances and advice? Just learned of defaulted student loans

Have you looked in to possible NFCU eligibility?  I see you use USAA credit monitoring, are you a full member?  I have full USAA membership through my father (retired Navy), he opened a $50.00 savings account (only needed to be $5.00) to gain membership for himself, then I was eligible.

 

You can't just rely on defaulted student loans "falling off", I think you need to deal with them.

 

You could look into Neighborhood Assistance Corporation of America (NACA) for counseling leading to an excellent mortgage - that's what I did.  If you get those loans into rehab and demonstrate steady progress they may be able to write you sooner.  They don't use scores as a criterion.

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Re: Mortgage chances and advice? Just learned of defaulted student loans


chasmith wrote:

Have you looked in to possible NFCU eligibility?  I see you use USAA credit monitoring, are you a full member?  I have full USAA membership through my father (retired Navy), he opened a $50.00 savings account (only needed to be $5.00) to gain membership for himself, then I was eligible.

 

You can't just rely on defaulted student loans "falling off", I think you need to deal with them.

 

You could look into Neighborhood Assistance Corporation of America (NACA) for counseling leading to an excellent mortgage - that's what I did.  If you get those loans into rehab and demonstrate steady progress they may be able to write you sooner.  They don't use scores as a criterion.


I am not a full USAA member.  I just in it for the banking.  Neither my mother or father is prior military, and I am unmarried.  I haven't looked at every single little possibility of getting NFCU membership, but I'm 95% sure I won't meet any of the qualifications.  And I am not counting on the defaulted student loans to fall off.  I'm fully planning on paying off the federal student loans.  Just found out that they weren't included in the rehab a couple days ago.

 

as for the Keybank student loans, as far as I'm concerned, they can go to hell.  I tried to work out a payment plan with them, but they said to pay all or nothing.  No other options.

Last Hard Pull 05/24/2013

Starting Score: MyFico TU: 621 EQ: 610
Current Score: AmEx EX: 700 Walmart TU: 711 EQ: 699
Goal Score: 700's baby! (made it 4/10/2013!)
New Goal: 740!!


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