topic Re: Reporting Consolidation to Credit Agencies in Student Loans

Reporting Consolidation to Credit Agencies

Mauveboy — Tue, 02 Apr 2013 14:03:22 GMT

I'm in the process of consolidating some defaulted loans and was wondering about the time it will take for my lenders/guaranty agency to report. My loans date of first default is 9/28/2006 and are very close to their 7 year drop off date. I'm in the 15 day waiting period of consolidation before the funds are dispersed. Once the defaults are paid through the consolidation, my plan is to write a letter of goodwill to my lender/guaranty agency asking them to remove the negative defaults 3 months early and only report the loan as paid in full as of the date they received the direct loan. At the same time I will also open disputes on the tradelines across all 3 credit agencies. My theory is that this will at the very least update my tradelines faster than just sitting and waiting and even if the defaults aren't removed they will be able to determine that the tradeline has changed quite easily by contacting the DOE and/or my Guaranty agency (ECMC). I also see a few minor errors on my report and figured this would be the time to correct them all. Does anyone have any experience doing this or know of any reason why I'd be wasting my time trying? Seems to me this would would force my lenders to report earlier than they might otherwise and the letter of goodwill would hopefully make them report favorably.

Re: Reporting Consolidation to Credit Agencies

Anonymous — Wed, 03 Apr 2013 13:25:02 GMT

Disputing doesn't necessarily mean that the process will be faster. Entirely possible for the dispute to hit while everything's still processing.....what are you going to do if it comes back verified? I think you underestimate the bureaucracy.

Is there a reason this needs to be expedited? Why the rush?

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Wed, 03 Apr 2013 14:37:39 GMT

I need to buy a new car and would like to buy a house this Summer, so the sooner my reports are correct, the better. There are already errors that are easily corrected (employment history etc..) that I would like fixed before I attempt to obtain a mortgage anyway. If I can see that the defaults have been paid on my ECMC account today for example but they don't report until the first week of May wouldn't disputing the tradeline just prove that it has been paid and in a way make ECMC report that before May 1st? At that point it shouldn't hit while everything is processing because the process will be done with the exception of ECMC reporting to the credit bureaus. I would even be able to provide proof that they are paid if need be through the letter I should receive from ECMC verifying that. I'm not as concerned about removing the default status early as those should drop off in September anyway. My FICO score is good enough for an FHA loan, but having active delinquent payments pretty much closes the door to getting anytype of meaningful credit so the sooner I can show those accounts as paid, the better. I've just seen instances of people waiting only to have things reported incorrectly and have to dispute anyway so being pro active is the best bet. My theory is that it can't hurt as much as having 3 unresolved defaults!

Re: Reporting Consolidation to Credit Agencies

Anonymous — Wed, 03 Apr 2013 15:33:18 GMT

Here's the thing - when you dispute this with the CRA's, you can't assume that there will be a real live person picking up the phone and calling another real live person. Not so. All they have to do is check E-OSCAR, the automated system. They're not even obligated to contact ECMC directly. Even if you have documentation, they don't know you from Adam so most likely it isn't going to be looked at anyway.

You can do what you like, but just be prepared that this may not help you at all.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/E-OSCAR/td-p/382221

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Wed, 03 Apr 2013 15:48:15 GMT

Thanks! That was the answer that I needed to know. Just didn't want to waste my time if there was a process behind the process. I had no idea about E-OSCAR. Should I at least write a letter of goodwill to get the defaults removed and dispute the errors I know are wrong now?

Re: Reporting Consolidation to Credit Agencies

Anonymous — Wed, 03 Apr 2013 17:47:40 GMT

A goodwill letter certainly can't hurt. I don't think correcting employment info, etc. can hurt either but it's not territory I'm knowledgable about. Good luck!

Re: Reporting Consolidation to Credit Agencies

Anonymous — Wed, 08 May 2013 21:01:35 GMT

@Anonymous wrote:
Disputing doesn't necessarily mean that the process will be faster. Entirely possible for the dispute to hit while everything's still processing.....what are you going to do if it comes back verified? I think you underestimate the bureaucracy.

Is there a reason this needs to be expedited? Why the rush?

will a consolidation at least help the credit score when someone like myself is in this situation?

Re: Reporting Consolidation to Credit Agencies

Anonymous — Wed, 08 May 2013 22:06:03 GMT

@Anonymous wrote:
@Anonymous wrote:
Disputing doesn't necessarily mean that the process will be faster. Entirely possible for the dispute to hit while everything's still processing.....what are you going to do if it comes back verified? I think you underestimate the bureaucracy.

Is there a reason this needs to be expedited? Why the rush?
will a consolidation at least help the credit score when someone like myself is in this situation?

Not really, unfortunately. A consolidation doesn't remove the default notation, so the borrower has to wait out the reporting period.

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Thu, 09 May 2013 02:38:24 GMT

It bumped me up 10 points. I expect another jump when the default finally comes off in September.

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Fri, 10 May 2013 20:27:47 GMT

Went up another 3 points. One of the loans I consolidated finally reported it's zero balance

Re: Reporting Consolidation to Credit Agencies

Anonymous — Fri, 10 May 2013 20:54:41 GMT

@Mauveboy wrote:
Went up another 3 points. One of the loans I consolidated finally reported it's zero balance

so 13 points so far?

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Sun, 12 May 2013 04:09:01 GMT

Yup, 13 points so far and the new Dept of Ed./Sallie Mae loan reported too and the score was unchanged

Re: Reporting Consolidation to Credit Agencies

Anonymous — Sun, 12 May 2013 08:09:13 GMT

I'm happy to hear this! Gives me a lot of hope that my student loan consolidation will still help me a lot. Like I said before, I simply couldn't afford to do the rehab

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Mon, 13 May 2013 18:24:50 GMT

I looked into my report a little more and it looks like the 10 point jump was based on only 1 of my ECMC accounts now reporting a zero balance. The other 2 that were also consolidated at the time are still reporting past due amounts. I filed a dispute on those 2 trade lines with Equifax, but wile they are in dispute my score dropped 7 points. I imagine once they are corrected I'll get those 7 points back plus some. Hopefully it's corrected soon, once Equifax is correct it's mortgage time!

Re: Reporting Consolidation to Credit Agencies

Anonymous — Mon, 13 May 2013 18:39:31 GMT

@Mauveboy wrote:
I looked into my report a little more and it looks like the 10 point jump was based on only 1 of my ECMC accounts now reporting a zero balance. The other 2 that were also consolidated at the time are still reporting past due amounts. I filed a dispute on those 2 trade lines with Equifax, but wile they are in dispute my score dropped 7 points. I imagine once they are corrected I'll get those 7 points back plus some. Hopefully it's corrected soon, once Equifax is correct it's mortgage time!

yes! keep me up to date step by step!

im ironically going through the same things all the way down to filing disputes with the credit bureaus due to accounts not updating; contacting the ombudsmen, you name it.

do you have a goal date or month as to when your hoping to apple for a mortgage? i was initially hoping for July but i'm not so sure anymore as thats only 45 days away.

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Mon, 13 May 2013 18:51:57 GMT

I could apply now, but I don't want there to be any major changes between Pre-qualifying and qualifying. I'm doing an FHA loan so my score is within range now. I'm hoping that Equifax gets it right by June or July. I don't anticipate it taking long, Transunion and Experian both already have it correct.

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Sat, 18 May 2013 18:06:13 GMT

Equifax fixed their report and I got those 7 points back. Right now my Equifax FICO is at 646 and my Transunion FICO is at 644 so they're pretty close. Time to talk to my mortgage broker about what I'm going to need to do to get an FHA loan!

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Tue, 21 May 2013 04:13:08 GMT

I spoke to a buddy of mine who is a mortgage broker and he says I should be good to go and to start the pre- qualifying. I'm going for a CHFA loan which is a Connecticut version of an FHA loan that allows for 100% financing at between 2.75-3.5 %. He said my EQ FICO of 646 and my Transunion FICO of 644 are more than enough as some banks will go down as far as 580 for this program. I'll have to show no late payments for 12 months, which I already have and possibly a 12 month rental history depending on the bank, which I also have. Consolidating my collections helped tremendously because even though they still have the collection notation on my CR, the last late payment is the date of default which is almost 7 years now. On all 3 CRs the last late payment recorded is 6 years and 5 months ago. He said that it also helps that I have a very low debt to income ratio at about 17%. 36% seems to be about as high as most banks he worked with would go. Unfortunately his company isn't authorized to work on CHFA loans but he's pointing me in the direction of a good bank to work with. The new goal is to be in my home by Halloween!

Re: Reporting Consolidation to Credit Agencies

Anonymous — Tue, 21 May 2013 18:30:41 GMT

@Mauveboy wrote:
I spoke to a buddy of mine who is a mortgage broker and he says I should be good to go and to start the pre- qualifying. I'm going for a CHFA loan which is a Connecticut version of an FHA loan that allows for 100% financing at between 2.75-3.5 %. He said my EQ FICO of 646 and my Transunion FICO of 644 are more than enough as some banks will go down as far as 580 for this program. I'll have to show no late payments for 12 months, which I already have and possibly a 12 month rental history depending on the bank, which I also have. Consolidating my collections helped tremendously because even though they still have the collection notation on my CR, the last late payment is the date of default which is almost 7 years now. On all 3 CRs the last late payment recorded is 6 years and 5 months ago. He said that it also helps that I have a very low debt to income ratio at about 17%. 36% seems to be about as high as most banks he worked with would go. Unfortunately his company isn't authorized to work on CHFA loans but he's pointing me in the direction of a good bank to work with. The new goal is to be in my home by Halloween!

thats awesome news. good to see your on your way to achieving your goal!

Re: Reporting Consolidation to Credit Agencies

Mauveboy — Sat, 29 Jun 2013 01:52:14 GMT

Here's the update. I have been working with McCue mortgage here in CT on the CHFA loan and my broker says that as soon as I hit 650 I will be all set for 100% financing. The good news is that the scores he pulled are higher than my scores here! My middle score is 646 and my high is 654 according to his his info. I few quick tweaks and I should hit 650 by August. I'm almost there!