Student Loan Rehab Suspended?
Date: Tue, 09/15/2009 - 10:14
Back in January my husband and I were trying to get preapproved for a mortgage in order to buy our first house. My husband's defaulted student loan prevented us from doing that and after many difficult phone calls with the DCS collection agency we entered into a 9 month rehab program. A few days ago we got confirmation from DCS and American Student Assistance that we were done with our rehab program and were eligible for his loan to be bought back by a lender. Great news!
We then got to a second paragraph that "due to the state of the credit market" the rehab program was suspended and that although some lenders were starting to buy back loans it was "first come first serve" and they didn't know how long it would be until the loan is purchased.
Obviously his had implications on our goals--if the loan isn't bought, it's still on his credit report as a default and we can't get approved for a mortgage. Do you have any more insight into this situation? Thanks!
We then got to a second paragraph that "due to the state of the credit market" the rehab program was suspended and that although some lenders were starting to buy back loans it was "first come first serve" and they didn't know how long it would be until the loan is purchased.
Obviously his had implications on our goals--if the loan isn't bought, it's still on his credit report as a default and we can't get approved for a mortgage. Do you have any more insight into this situation? Thanks!
Due to the economy, there are limited lenders for rehab. Guaran
Due to the economy, there are limited lenders for rehab. Guarantors are working hard to get them and funding has been going thru for some guarantors on a hit and miss basis....basically first come, first serve.
You can still qualify for a mortgage with a consolidation...the default is resolved but the negative tradeline remains. You may end up paying a bit more in interest. It is up to you whether or not you wait or proceed to consolidation.
