Rehab/ CB question

[brownee]

Question...we want to try to get a mortgage in March, but our SL's don't come out of rehab until February. My last payment is 2/6/09. Will this leave enough time to get my CBR's to reflect the fact that it is not in default anymore thus allowing us to qualify for a VA (government) loan?

[Anonymous]

Don't count on it being off by March.  I made my final rehab payment in June and the neg tradline didn't come off till Aug 1st.   Even then the only one that comes off is the rehab tradeline.  Any others will still be there.

[brownee]

The rehab tradeline? Should there be a separate tradeline with the CA's name on it?The only thing on my report is US Dept of Education and shows *Government Debt; Placed for collection; Defaulted; Closed 03/07..this is what's on my Resdential merged credit report I got from the lender. Can we request that it be updated asap?

[Anonymous]

Before rehab I had

3 TL that were AES/CHASE ELT WAC LLCNST  showing all the lates and

Status:  Claim filed with government/Past due 180 days. 

Creditor's statement:  Student loan permanently assigned to
government. 

During rehab i still had those 3 plus one from NSL (this was the rehab TL

After rehab:

Still have those 3, The NSL was deleted and now have a new positive TL from Suntrust.

[brownee]

Did your default status not come off of your report?  I thought that the default came off even with the tradelines still there...hmm. I don't have a tradeline for the rehab-is that a problem??

[Anonymous]

No the default on the AES TLs did not come off.  Only the TL from NSL which is basically the CA in this case.  The original TLs  do not come off. The original lender is under no obligation to remove. 

Not sure if I was told the truth or not but the guy handeling my rehab said If I wait 2 or 3 months after I am paying on the new TL (the Suntrust one) that I should go back and dispute the AES TLs.  He said since they have been paid, they normally do not verify  since they would be wasting time on something they have already been paid for by the government and the TLs would get deleted. He claimed that is what most people that go thru rehab do.

Again this is what he told me so I do not know if this is true.

I due have a valid  reason to dispute those three tradlines. They all show current status as +120 days past due when they should read current status as Paid,Closed/Collection account. 

Of course that really won't help my scores at all unless they do not verify and they delete.

To be honest I am tired of dealing with the SL altogether.  If I hadn't gotten medically discharged from active duty it would never have been a problem.  Now thanks to Arrow Finacial, I may soon be in position to to either pay off completly or may take the total due, drop it in a seperate saving account(so I make some interest off it) and set the autopayments coming from it. That way I do not even have to think about it again until it is paid in full and will have the aged account to counter the negative ones.

Message Edited by richmc on 08-15-2008 01:26 PM

[brownee]

Ok, here is my whole story:

I took out a student loan in collge (91-95). The loans show on my credit report as US Dept of Education. It shows I am past due in the amount of 21,285. I contacted the USDept of Education and asked them who had my loans, how could I pay them. They gave me a name and number and I called to set up payments. The people I called (CCA) told me that if I paid them for 9 months, the loan would then be ok and current and either sent back to the USDofE or to another lender. Fine. Well, what I want to know is when I am done paying the 9 months, what will happen with my creidt reports? Right now those tradelines show defaulted. There is no tradeline for CCA or anyone else. It just says Defaulted. So, when I am done with the 9 months in February, my CR is still going to show defaulted??? I don't care about the lates being there, I understand that...my concern is whether or not those tradelines are still going to show default and with a past due balance of 21,285 even though I will no longer be in default then...

[Anonymous]

Ok the difference between us is  the age of the SL.  Being from 91-95, your original lender has had enough time to fall off your reports.  Mine are from 04 so original lender is still there for another 3 1/2 years. 

In your case, yes the neg TLs should disappear completly and once the account is assigned to a new lender, that one positve TL should be the only SL TL showing. 

Or at least that is the way I am reading it.  If I am wrong some one slap and set me straight.

[brownee]

whew!!! Ok, I feel a LOT better now...thanks, Rich! You've served to make me feel better about my loans, yet worse about my age all on one post...LOL

[LynnInMN]

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brownee wrote:

Question...we want to try to get a mortgage in March, but our SL's don't come out of rehab until February. My last payment is 2/6/09. Will this leave enough time to get my CBR's to reflect the fact that it is not in default anymore thus allowing us to qualify for a VA (government) loan?

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You do not come out of rehab but entering into it when you make the 9th payment.....technicially  you are making  payments  to qualify for your loan to be rehabbed.  Semantics  I know,   Your loan is not rehabbed until the new lender pays off your defaulted guarantor and that can take from 15-60 days .  Then your guarantor has 90 days to change your credit report..  Keep in mind that a 10th payment could be required.