strategy to getting to a point where I can qualify for a mortgage

[Whitneyy]

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@toomin3 wrote:

My third question is regarding my federal student loans. When they defaulted they bounced around between a lot of companies, resulting in three tradelines a loan. Since that time, I enrolled in a sallie mae loan rehabilitation program, during which I make nine on-time payments of 30$, and they rehabilitate the loan. My question regarding this is for anyone who has gone through a similar process. Do they delete all the baddies off of your report and replace it with one good tradeline, or what? They said they would be removing some of the late charges also, if so which ones did they remove for you? Anything you can tell me about this process would be very helpful, I only have two payments remaining in order to complete this program

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Hi there! I finished my rehab program back in August, my loans were picked up in October and I started paying in January. It was just this month that sallie mae finally deleted ALL my lates, and shows NEVER late and paid as agreed. I had to call them a bunch of times and let them know that they were updating incorrectly before I finally got some help. After I was done with rehab my loans were also consolidated, which gave me two new positive tradelines (granted I pay them on time). They updated the past two tradelines, and added TWO more positive lines. So from Sallie Mae I have FOUR and from the consolidation I have TWO.  

[toomin3]

Teardrop, The whole thing with the NY chargeoff seems to be really finicky and CRA dependent. I had a chance to pull a credit report from each CRA recently, and each one had a different drop off date for the settled charge offs. The transunion had a date in 2016, which lines up with the NY rule, so it appears transunion doesn't need to be contacted. The other two both still show drop off dates in 2018, though the forum I linked did say you had to contact all three to let them know about NY's special rules. It looks like experian may be really hard to work with about this too. Fortunately, I haven't read any horror stories regarding equifax and lucky for me mortgage granters usually use your middle score .

[toomin3]

Thanks for the reply Whitney!

Hopefully, my experience with loan rehabilitation is closer to yours then kjel's. 

So after pulling my report it looks like I only dropped 5 points from all those inquiries and new lines, so not to bad. I'm hoping having 13 new accounts, and 17 total accounts, reporting payments every month will bring up my credit score in the long term.

Who thinks this is a good idea? 2/3 of the accounts I opened are at places I wouldn't be caught dead in (Gap, american eagle, etc.) and just getting charges on there at all will be a pain. My plan is to send my sister in to put some charges on those cards and buy all my christmas presents, pay them off over the year, and do the same thing next year to (hopefully) build a good credit history. In fact, the only ones I'll actually use will be the paypal, wal-mart, and firestone for oil changes (hopefully car doesn't need work but it's cool knowing I can get it fixed and still get to work if necesary).

Thanks again for the advice everyone.

[Teardrop]

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@toomin3 wrote:

Teardrop, The whole thing with the NY chargeoff seems to be really finicky and CRA dependent. I had a chance to pull a credit report from each CRA recently, and each one had a different drop off date for the settled charge offs. The transunion had a date in 2016, which lines up with the NY rule, so it appears transunion doesn't need to be contacted. The other two both still show drop off dates in 2018, though the forum I linked did say you had to contact all three to let them know about NY's special rules. It looks like experian may be really hard to work with about this too. Fortunately, I haven't read any horror stories regarding equifax and lucky for me mortgage granters usually use your middle score .

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toomin3 I really hope it works out for you.  I can taste my new house, lol.  But unfortunately I gotta wait until Dec to apply.  We gonna see if my partner can qualify now and if so we will just add me to the loan hopefully when we go to closing.  We are looking to build.

[toomin3]

Hey all, would just like to give everyone an update on what's been going on.

I successfully completed the loan rehabilitation program this past month, and my loans have gone over to Nelnet.

The original loans still say transferred / sold, but the second ones had all the negative information removed. Unfortunately, it also created a third set of loans specifically for Nelnet. So now there is three entries for each loan on my credit report with the same loan number / opening date. What do you guys recommend I do at this point?