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New Contributor
cp94550
Posts: 70
Registered: ‎11-05-2011
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Re: Wait time for new lender after 9th payment of rehab

I completed final payment on 9/15 and was picked up by a new lender on 9/22.  I'm still waiting for my delinquent/negative marks to clear up. I was told it would happen by November 1st.  Just have to wait another week to find out!  My new lender is Direct Loans and they are reporting already.


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New Contributor
cem13
Posts: 59
Registered: ‎07-20-2012
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Re: Wait time for new lender after 9th payment of rehab

[ Edited ]


EDIT: 30OCT12

 

I made my 9th payment on 10AUG12 (for 01SEP due date).  Made my 10th payment 03OCT12 to DOE Default Resolutions Group.   I was picked up on 18OCT12.  My new servicer is FedLoan Servicing for DOE. Received email from FedLoan Servicing.  I logged in and my statement was ready.  All the information was correct.  Old payment with CA was $300, new payment is $271. 

 

The kicker is the new payment is due 03NOV12, exactly one month after I made my 10th payment.  I have less than a week to pay it, which is not a problem but I noticed many people received a month relief before payment was due after they got picked up.  I was planning on making a payment this month (NOV2012) anyway.  So I set them up in the Chase Bill Pay and Chase has a 1 day electronic payment for them, which is great.  So I paid them today and I will check with them tomorrow to see if they received payment and ask about TL reporting.

 

I checked the NSLDS and it still shows default.  I check myfico and no alerts showed up yet.  I check freecredit for experian and nothing yet.  I also noticed that Experian is always the last to update.  I do not know why.

 

On 26OCT,  I disputed all the SL TLs so they can start the investigations and maybe get them cleaned earlier.

MyFICO '08: AUG2014: EQ=707, TU=693, EX=711
MyFICO '08 JUN2014: EQ=700, TU-688
MyFICO JAN2014: EQ=704, TU=720, EX=708
MyFICO MAY13: EQ=701, TU=708, EX=705 (Lender Pull).
MyFICO JAN13: EQ=701; TU = 677) 2 years after filing BK7, 18 months after discharge in JUN11
MyFICO (SEP12: EQ=677; TU=670) 16 months after discharge BK7.
MyFICO (JUL12: EQ=671) 13 months after BK7.

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mollyork
Posts: 11
Registered: ‎04-03-2012
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Re: Wait time for new lender after 9th payment of rehab

UPDATE:

9th payment was completed on Nov. 1 and loans were picked up on Nov. 23.  As of today, no updates on defult status and credit reporting.  I have realized that if the Dept. of Ed Collections holds your loans, eveything takes twice as long.  They have offered to write letters stating he is out of defalut, but Dept of Ed has stated that reporting should be updated by 2 months after your 9th payment....we'll see.

Valued Contributor
Swapmeet
Posts: 1,569
Registered: ‎11-10-2012
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Re: Wait time for new lender after 9th payment of rehab

It took mine about 60 days from my last payment until my credit score was updated. It was well worth it though because they kept the open date (which was in 1998), but changed my payment history to pays as agreed, never late. It is a beautiful thing.



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mollyork
Posts: 11
Registered: ‎04-03-2012
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Re: Wait time for new lender after 9th payment of rehab

What a mess!  I was wondering if anyone has the same experience:

 

My husband completed rehab on Nov 1 and was picked up by a lender on Nov. 23.  His loans are all out of default, but we are seeing very frustrating reporting to the credit bureaus.  Dept. of Ed is telling us that it is not their fault.  He had 7 accounts that were marked as derogatory by the Dept of Ed - we were counting on all 7 of these accounts to update to good standing after rehab.  They are now gone!  The 7 accounts have combined into 1 account and it is still derogatory on Experian and Equifax and on TransUnion his accounts are completely gone.  His score has not risen at all because the accounts were just deleted or combined into 1 account.  Dept. of Ed said they updated the reporting Dec 16 - it is now Dec. 28.  Has anyone else had this problem?  Will these accounts come back?  It this the credit bureaus or Dept. of Ed's doing?  We don't know what to do.  

New Contributor
cem13
Posts: 59
Registered: ‎07-20-2012
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Re: Wait time for new lender after 9th payment of rehab

@ mollyork:

 

The real question is who picked up the SL?  If an outside servicer picked up your loan like me; you are hosed.  If Direct Loans was the original lender and they picked it up again; then you are golden.

 

My new servicer (Fedloans) told me that they will not back date anything to the CRAs.  They will only report fromt he time they picked it up.  I called DOE and tehy told me that teh derogs will remain because they were the original lender and I was in default.  The loan is "paid in collections".

 

I personally think this is a crock of dog do-do but I have exhausted all my known avenues.  Direct Loans will not correct this to "paid as agreed" and FedLoan will only report the recent activity.   Other people on this board has better luck than me.

MyFICO '08: AUG2014: EQ=707, TU=693, EX=711
MyFICO '08 JUN2014: EQ=700, TU-688
MyFICO JAN2014: EQ=704, TU=720, EX=708
MyFICO MAY13: EQ=701, TU=708, EX=705 (Lender Pull).
MyFICO JAN13: EQ=701; TU = 677) 2 years after filing BK7, 18 months after discharge in JUN11
MyFICO (SEP12: EQ=677; TU=670) 16 months after discharge BK7.
MyFICO (JUL12: EQ=671) 13 months after BK7.

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mollyork
Posts: 11
Registered: ‎04-03-2012
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Re: Wait time for new lender after 9th payment of rehab

Yes, they were picked up by an outside servicer - Great Lakes Loan Servicing.  So, that 10 months of living off of pennies so that we could come up with the money to complete rehab meant nothing? We were counting on those accounts to update to a positive reporting so that his credit score would go above 620 so that we could buy a house.  Now, his score is just sitting there because the accounts are gone.  Isn't the point of rehab to fix your credit - not make it worse? This is not what I thought would happen.  This mess will NEVER be behind us!

New Contributor
cem13
Posts: 59
Registered: ‎07-20-2012
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Re: Wait time for new lender after 9th payment of rehab

@mollyork

 

IN my case, the original loan with Direct Loans (DOE) was closed and "paid in collections".  All the baddies remain in that TL.  My new servicer (Fedloans) has not yet started to report.  I am NOT pushing them to report because I have a car loan and I am a co-signer on my daughter's SL.  So I have 2 installment loans reporting.  I dont need 3 more and add $30K to my reported debt.

 

If your situation is anything like me, the original loan should be marked closed and paid in collections with balance of $0.  When you were in default, the DOE Collections Department was handling your loan.  They should have also entered a TL for the collections along with teh original TL.  But now, there should only be one (1) TL per loan.  The collections TL should be removed as you are not in collections anymore.  The the new servicer should be reporting the new loan from the day they took over your loan.

 

Double check your TLs.  1) Make sure the Collections TLs are gone.  2) Mare sure the original loan is closed and marked "paid in collectiion" or "paid as agreed" AND showing a balance of $0.   3) Insist the new servicer is reporting if that is what you want.

 

The reason you WANT to be rehabbed is 1) The DOE cannot ask the IRS to take any tax refunds, and 2) The DOE does not seize your bank account or 3) file a lein.  The DOE does NOT need a court order to seize your assets.  They are the god of the financial world.  They just send a letter to your bank asking them to freeze your accounts and any other asset with your SS #.  

 

So yes Virginia, you want the loans to be rehabbed.  The negative reporting can be fixed later through other methods that we cannot really discuss here.  Of course YMMV.

MyFICO '08: AUG2014: EQ=707, TU=693, EX=711
MyFICO '08 JUN2014: EQ=700, TU-688
MyFICO JAN2014: EQ=704, TU=720, EX=708
MyFICO MAY13: EQ=701, TU=708, EX=705 (Lender Pull).
MyFICO JAN13: EQ=701; TU = 677) 2 years after filing BK7, 18 months after discharge in JUN11
MyFICO (SEP12: EQ=677; TU=670) 16 months after discharge BK7.
MyFICO (JUL12: EQ=671) 13 months after BK7.

Wallet: NFCU Rewards: $25K; Cap1 QuickSilver: $2250; Barclays Apple Rewards: $2000; Cap1 Rewards: $1500.
Member
hillbillytim
Posts: 6
Registered: ‎06-01-2012
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Re: Wait time for new lender after 9th payment of rehab

Mine was not quick and a little stressful.  If took 5 months for the DOE to get me processed out of default.  The whole time I was still paying the collection agency and then started getting deliquent notices from the DOE.  When I called the DOE they swore they did not send me any deliquent notices and told me to keep paying the CA until they got caught up from a database conversion they were doing. 

 

Eventually, a rep at the CA told me that the people I am calling from the deliquency notice are not actual DOE employees, they are an outsourced call-center.  He said to ask to be transferred to a supervisor for two levels and then you will be actually talking to a DOE employee.  I did that and explained my situation and a week later my loan was out of rehab and with a new lender. 

 

That was 3 months ago and my credit report has not updated yet.... 16 months and counting on the entire rehab process.

Member
mollyork
Posts: 11
Registered: ‎04-03-2012
0

Re: Wait time for new lender after 9th payment of rehab

Wow, thanks for sharing.  Looking forward to other government controlled systems in our country....what mess.


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