Effects of debt consolidation on getting a mortgage

If debt consolidation is not done properly, in other words if you are not negotiating for your credit report then your credit score will come down by some points. This will effect mortgage rates.

Most of the mortgage lenders check your credit rating , they do not consider debt consolidation as a major factor.

One more factor for qualify for good credit rating,
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I have heard the opposite from acutal lenders that debt consolidation can have a negative effect on obtaining a mortgage.

If you are talking about debt settlment, as a way of consolidating your debt, it will affect your credit rating, because you need to be behind to demonstrate hardship, and if you are behind on any of your accounts, your credit scores will be affected.

Well I am going to have to consolidate $36,000+ in studebt loans. And, I was told that even though after consolidation would show that all of my loans were paid in full....it will not remove the fact that they were in default. And in fact this will hurt our credit for sometime.

I have contacted the NACA and am seeking some legal advice before I sign anythingelse. This is a consumer advocate group fighting for changes in current collection and debt protection laws for consumers. They have a list of Attorneys who specialize in just these issues....you can search by state. My consultation is free.....so I thought what can it hurt?
But whether you think this might be an option for you or not....I can tell you that the site is very informative and that they are asking for people to contact them with their stories to aid them in lobbying congress for changes!
http://www.consumeradvocates.org/
Good Luck and God Bless!