Re: Direct Loans rehabed to FedLoan Servicing still shows a baddie!!!
12-28-2012 08:24 PM
Im in the same situation.
I defaulted in 2008. I started to rehab then filed BK7. Original rehab was denied by DOE since I missed my last payment on the advice of my Attorney. He tried to get my SL dismissed in BK7 but was unsuccessful. So thankfully I did a second rehab and was then tranferred to FedLoan. The DOE default TLs came off within a week and I jumped 40 points. However the original loan was marked as "paid in collections".
I called DOE and they told me the original loan will still report as defaulted. The new loan from Fedloan has yet to report (3 months). I already have 2 installment loans reporting so I really dont need 3 more. So I am not pushing Fedloan to report.
I then called the Ombusdsman which was a waste of my valuable brain matter. Those people are just plain below average performers. There is no other explaination. I would bet the average IQ is around 88. That is our governement for you.
Anyway, DOE says the loan is closed and no further reporting can occur. Fedloans says they cannot correct anything in the past because they did not have the original loan. You talk about frustrating. So I spoke with a supervisor TWICE. She told me the original loan was in default....PERIOD. And they will report as such: Paid in collections"
I have disputed this TWICE with the CRAs and it comes back as Paid in collections both times. I will try the validation letter route and then send that to the CRAs.
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.