Student Loans

[jordanmedical]

Have a defaulted private loan and need to know if anyone has had luck in the loan servicer taking the loan back so you can make payments and removing the collection? The reason I ask is I want to do a mortgage and my loan officer says it's best if the collection is deleted.

Any suggestions are greatly appreciated.

[RUNURSINGHOO]

How long has it been since it was turned over to collections?? I have a private student loan in collections and my window of opportunity was within 30 days.

[jordanmedical]

I'm out of luck then cause it was turned over october 2011

[webhopper]

Offer them a settlement for deleting the negative information... otherwise you'll have to wait on the home purchase. 

How are you trying to buy a house when your student loans are in default?

[jordanmedical]

There's no way I can afford a suitable settlement for 30K (19K originally).

[webhopper]

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jordanmedical wrote:

There's no way I can afford a suitable settlement for 30K (19K originally).

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Can you afford to start repaying the loan in any fashion? 

Maybe I'm missing something... if you can't afford to pay on a 30k school loan, how are you going to afford to pay on a house note?

Is there a way to cut expenses to start paying some of this back?

[jordanmedical]

Yes, I can afford to start paying it back but a PFD is usually one lump sum so thats why I stated I couldnt pay that. Of course I could afford a house note because I'm looking to get a condo and in my area the monthly cost is about the same as renting and I do that all on my own just fine. Are you asking constructive questions or being deliberately snotty as your reply to a few of my posts have been a little rude? Only this one private loan is in default, all my goverment student loans are being paid as agrees with no issues.

[webhopper]

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jordanmedical wrote:
Yes, I can afford to start paying it back but a PFD is usually one lump sum so thats why I stated I couldnt pay that. Of course I could afford a house note because I'm looking to get a condo and in my area the monthly cost is about the same as renting and I do that all on my own just fine. Are you asking constructive questions or being deliberately snotty as your reply to a few of my posts have been a little rude? Only this one private loan is in default, all my goverment student loans are being paid as agrees with no issues.

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A house is a big deal and there are sometimes things that pop up that you have to shell out a lot of extra money for.  Don't forget condo dues that can change depending on the association, and if they need to replace the roof, they might bill all of the owners...  Also keep in mind that municipalities are really hurting for money these days, one of the ways they raise money is by increasing taxes on those who can afford to pay (property owners)...

I just don't see people defaulting on a loan and not trying to catch up at some point. Seems strange.   I'm not trying to be snotty, I'm just being real. If I had gotten the house that was as expensive as what I was "approved" for, then I'd have lost it in 2009 due to some financial hardship that lasted about a yr.

If you can get approved for a loan now is a great time to buy, but the lenders are very unforgiving at this point.   It took me 4 1/2 months for my most recent mortgage that closed in January 2012, with a middle credit score of 693 (lender pull)

Many of the underwriting standards don't even allow you to have a late payment at all within the last 24 months of your credit history. I'm not trying to be snotty I'm just saying you should try to work up some sort of payment plan with them to bring your loan current, otherwise you likely won't be approved for what you want.

Also, if you don't have cash sitting around to try to pay these people with, what are you going to use as a down payment...  most mortgages require a down payment and closing costs which vary depending on your state and the amount of your loan.  You also might be required to pay discount points or penalty points since your scores are so low. These points can be costly. I'm glad you have a reputable bank to work with, I'm just surprised they haven't told you to do something with that SL.  Do you have any family members that would co-sign a personal loan for you, or loan you money to settle with these guys? 

You won't be able to close on a house until this liability is gone.  Your lender doesn't want someone filing a lien on your house or garnishing your wages after you close on the house, because that can affect their bottom line and your ability to pay them.   A lot of times collection companies can tell when you're looking for a mortgage, it means that you've got some money saved back.  these low lifes can come out of the woodwork wanting their pound of flesh and totally ruining your chances of getting the mortgage to fund.

I'm sorry you took my questions as rude, I wasn't trying to be rude, I was just trying to be very honest with you about your situation.  Sometimes people don't like to hear what they don't want to hear.

[jordanmedical]

It's one thing to give advice and it's another to be rude especially when you don't know the whole story. I haven't defaulted for years and you have no idea when I'm looking to buy. You assumed that and it is being rude when you ask a rhetorical question or make a comment about ppl being in default shouldn't be able to have a home. It went into default late last year and I'm just stable enough to take care of it now. It's a long situation where I had a job that decided not to pay me and it put me behind plus the lender wouldn't work with me without the co signers signature who passed away and it took me months to get a death certificate. I do have a very good lender has I work for the company and will be getting an employee-based loan. Down payment is going to be given to me as a gift so that is set. I'll just try rehab. I'd appreciate it if you stopped responding to my questions, I'm looking for plausible solutions not assumptions and condemnations.

[webhopper]

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jordanmedical wrote:
It's one thing to give advice and it's another to be rude especially when you don't know the whole story. I haven't defaulted for years and you have no idea when I'm looking to buy. You assumed that and it is being rude when you ask a rhetorical question or make a comment about ppl being in default shouldn't be able to have a home. It went into default late last year and I'm just stable enough to take care of it now. It's a long situation where I had a job that decided not to pay me and it put me behind plus the lender wouldn't work with me without the co signers signature who passed away and it took me months to get a death certificate. I do have a very good lender has I work for the company and will be getting an employee-based loan. Down payment is going to be given to me as a gift so that is set. I'll just try rehab. I'd appreciate it if you stopped responding to my questions, I'm looking for plausible solutions not assumptions and condemnations.

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Never said you shouldn't have a home, just indicated that it might be impossible Edit, insert (due to underwriting standards) without something happening to that SL. You should also look into HUD's limits on gift money.  Good luck.