The original lender is allowed to continue to report the late payments that lead up to your default, they are not required to remove them, although some lenders do. You would be disputing correct information. You can send a goodwill letter to the lender asking for an adjustment of that reporting, or you could just wait for them to fall off and focus on building positive credit history in the meantime.
Just out of curiosity, what was your scores before the default was removed?
That is incredible 100-150 point gain after rehab! I sure hope I get that kind of boost, did you do anything else to your credit between score changes? I have been working diligently to get other baddies cleaned up over the past two months, at this point I have paid or had removed around 8 different collections; hoping between this and finishing the rehab program in June will get me where I need to be. Thanks for your reply!
I'm currently in the same boat as you are. The only thing that could help is by sending GW letters to the OC in the hopes that they will help us. However, before you send out any GW letters, try to find out a good/solid contact within the OC so your chances of getting your marks removed increrase. Good Luck ........ What ever you do - DO NOT - use letters found online. Write yourself the letter and make sure it's specific to your situation and from the bottom of your heart.
Your best course of action would be to get confirmation in writing from Citibank on the status of your loan when they transferred it to SM. You want proof it was in deferment, the date the deferment started and the date the deferment was meant to end. You can then take this to SM and present your position that the loan should have remained in deferment after they began servicing the loan.