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Please help! - Consolidating default loan in judgment

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Anonymous
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Please help! - Consolidating default loan in judgment

Hi,

 

I'm hoping someone here can tell me if consolidating a default student loan with a judgment is possible. After rebuilding our lives after string of illnesses for my wife, we are finally poised to purchase a home with a VA mortgage. Our credit is clear, our scores are back up near 700 and my wife has been healthy and in a stable job for several years now. The only issue is some default student loans from 20 years ago. We would like to consolidate, which is possible for defaulted loans, but apparently there was a judgment on them. Note this judgment does not appear on her credit reports in any way.

 

The consolidation rules on this are not clear. On the one hand the government says that any judgments must be vacated to consolidate, but on the other hand there is some guidance I have seen that says that guaranty agencies can't exclude a borrower from consolidating loans in judgment. We put in a call to the loan holder about it and they were totally unhelpful and gave us the impression that they would be willing to lift the judgment would not commit. They said we should apply and essentially "see what happens". We're really scared this could derail our home purchase dreams, since the judgment would seem to even prevent rehabilitation (which we really don't have time to go through). Does anyone have any experience with this kind of situation?

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