Student loans are easy to fix mainly because for the most part you cannot ever get rid of it unless you pay it, get a qualified forgiveness plan or die. defaulting on a Student Loan is not the end of the world even though it may feel like it at the time. Simply rehab the loan which requires you to make several months of payments on time or consolidate your loans which will bring you out of default. If your going to do a FHA, VA or USDA backed loan consolidation will be the fastest route.
HeidiHappyHeart asks a good question “Has anyone had their home threatened or taken by government for defaulted Student Loans.” Does government ever try to sue so they can try and take future assets to help settle repayment.
In my specific case, its my spouse that has been in default for over 30 years (before marriage.) She is an at home mother with no employment. DP for conventional is way to expensive. Can I keep her off FHA mortgage loan? Will FHA insist on running her entire credit or just have her sign some papers to acknowledge my purchase? Thx!
Thanks for the info. Did you see a signifanct change in your credit score once you were out of rehab?