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 Posted: Tue May 13, 2008 4:15 pm Subject: student loan and having a house. |
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I was in default on student loan for several years. Just started payments. I am thinking of buying a house. What is the deal with getting a mortgage? Will the student loan company attach the house right away or not because I am now making payments?
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spartacusri
Joined: 23 Mar 2008
Posts: 7
Debtcc Points: 255
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| Posted: Wed May 14, 2008 5:17 am Subject: |
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You say you "was" in default and that you just started making payments. Making payments does not resolve a default. If this is the case, you want to look at rehabbing your loan to bring it out of default.
You will find it very difficult, if not impossible to purchase a home with a student loan in default. Mortgage lenders right now are very picky and these troubled times. With the default, you are ineligible for all FHA and VA mortgages.
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SOAPLADY
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| Posted: Tue May 27, 2008 4:36 pm Subject: |
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Ok so I just pulled a credit score and it said I am at 770. Is that possible with a student loan that was in default? I have not rehabbed it yet. Looked on my credit report and no student loan there. Plus my original question, if I am making payments will they automatically attach the house and I lose the power to negotiate a payoff of the loan?
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spartacusri
Joined: 23 Mar 2008
Posts: 7
Debtcc Points: 255
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| Posted: Wed May 28, 2008 4:37 am Subject: |
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You have an old loan that has fallen off your credit report. However you still have a government default and the mortgage company will find it...there is a data base that they check. Also a lot of mortgage applications do ask about defaulted government claims. The bottom line is the default will result in higher interest and refusal of a lot of mortgages. On the flip side, when a CA sees a mortgage inquiry, they may cancel your payment plan and demand payment in full or signicantly increase your monthly payment.
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SOAPLADY
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| Posted: Wed May 28, 2008 7:24 am Subject: |
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Thats what I am worried about. I am going to go look at a house only because it is in my price range and will actually be the same as my rent. I figure why pay rent if I can own for the same monthly amount? My goal as always is to pay off the loan in a lump sum. Right now they want 30k. I am worried that if I buy a house they will attach and I will lose negotiating power and they will want the full amount which is 47k right now after penalties and compound interest.
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Debtcc Points: 100
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| Posted: Wed May 28, 2008 9:54 am Subject: |
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You buy a house and watch your settlement basically disappear because you are showing them that you can borrow money when you want to.
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SOAPLADY
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