Private student loan defaults and mortgage applications

[mcas85]

Hi everyone. I spoke with a mortgage broker, and he told me he could work with me if work out a payment arrangement with my defaulted private student loans. I have two default loans. One of the loans will fall off my credit report in a year. If I were to work out an arrangement with that specific loan, will it reset my clock so to speak and put me in a worse position if I had just waited another year for it to fall off my report? And if it does fall off, and I decide to settle will that also put it back on my credit report? Is there a strategic way to go about this? I am planning on applying for a mortgage and want to have the best strategy. Thanks !

[Anonymous]

I was able to settle private loan at 20% before my mortgage inquiry was made. After that inquiry hits you'll lose any bargaining power

[mcas85]

Thanks, what do you mean lose bargaining power... do you mean to settle the loan?

[mcas85]

So settle before mortgage application? 

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@Anonymous wrote:

I was able to settle private loan at 20% before my mortgage inquiry was made. After that inquiry hits you'll lose any bargaining power

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[Anonymous]

Nice

[Anonymous]

Yes, settle before they pull mortgage inquiry. Once the inquiry is on the credit report they can see it and know you are trying to negotiate as a condition of mortgage app. They know they've got you.