cancel
Showing results for 
Search instead for 
Did you mean: 

Will SM remove default after Rehab too?

tag
dlee
Established Member

Re: Will SM remove default after Rehab too?

When a loan rehabilitates after default, it is sent back to a servicer. Each individual loan that defaulted will show up as an individual loan when rehabilitated.

Message 11 of 17
Jon85
Frequent Contributor

Re: Will SM remove default after Rehab too?


@dlee wrote:

When a loan rehabilitates after default, it is sent back to a servicer. Each individual loan that defaulted will show up as an individual loan when rehabilitated.


Yeah, I know. I'm just hoping that the original default status from the original servicer (SM) get removed too, even though Nelnet is going to be picking up the loans.

Message 12 of 17
dlee
Established Member

Re: Will SM remove default after Rehab too?

When your loan(s) are rehabilitated, they will be sent to a servicer. They will transfer as individual loans, as they originally were prior to default.

Message 13 of 17
nookbookcrazy
New Member

Re: Will SM remove default after Rehab too?

Hello everyone!  I completed my rehab in April and it looks like my credit reports have updated but my Equifax is showing my rehabbed loans with Mohela under potentially negative and as closed as follows:

Is this correct or can it be disputed since the status says pays as agreed?

Closed Accounts

Account Name Date OpenedBalanceDate Reported Date of last reported update.Past DueStatus Condition of account when last updated by creditor or otherwise.Credit Limit
        
MISSOURI HIGHER EDUC
Show Details
 08/22/2004$0  05/22/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/22/2005$0  05/22/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/22/2005$0  05/22/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/21/2005$0  05/21/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/21/2002$0  05/21/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/21/2003$0  05/21/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 09/21/2006$0  05/21/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/21/2004$0  05/21/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 09/21/2006$0  05/21/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/21/2002$0  05/21/2013 PAYS AS AGREED 
MISSOURI HIGHER EDUC
Show Details
 08/21/2003$0  05/21/2013 PAYS AS AGREED 
Message 14 of 17
SCF
Valued Contributor

Re: Will SM remove default after Rehab too?

"Pays As Agreed" is how it should be reporting.  What you don't want to see in the status field after rehab is anything that indicates the default including language about assigning the debt to the government, filing a claim on it, etc.  It looks to me like your reports updated properly.

 

Are the old lates still there?  The letter of the law allows lenders to leave the late marks that lead up to the default, and if they are still there, that would explain why Equifax is tagging the account as negative.

Message 15 of 17
nookbookcrazy
New Member

Re: Will SM remove default after Rehab too?

Yes, the old lates are on there still.  Oh, well!  At least the pays as agreed is reflected, right? Smiley Happy

Message 16 of 17
kjel
Established Contributor

Re: Will SM remove default after Rehab too?

I defaulted on consolidated loans, one subsidized and one unsubsidized. While I was assigned to CBE, the statements they mailed me always listed just one lumped balance. Dept of Ed was reporting each loan as two separate collections TL.

 

After rehab, both the collections TLs were deleted off of EQ and EX after I filed a dispute. The references to default, permanently assigned to govt, insurance claim filed all were removed from the pre-defaulted TLs. None of the lates were removed from the pre-default TLs but I was never told they would.

 

I was picked up by Nelnet and they are reporting two TLs dated back to the origination date of my consolidated loans. I have an open dispute with TU over how all the Dept of Ed TLs are reporting so waiting for that result to come through.

Current Score: TU: 674 | EQ: 722 | EX: 717 | Last Inq. 2/16/15...Locked Up in The Garden
NFCU Cash Rewards $14K | Chase Sapphire Preferred $5K | Amex Blue Cash Preferred $6K | Cap1 Quicksilver One Visa $9K

Message 17 of 17
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.