Multiple DOE, TERI, Mortgage Questions

[miserableloangirly]

hello-- here is my situation:

 

- have 55k in FFEL student loans with DOE (+48k in back interest)

 

- allied interstate is working on DOE's behalf (added 25k in collection fees) as of 12/06

 

- none of this is on my credit report (last loan was 1994)

 

- i want to buy a condo and called DOE today and asked to discuss rehabilitating loan and having them take it back from allied interstate (absolute NIGHTMARE-ISH and verbally abusive people). DOE told me they can't take it back.

 

QUES: they can't, or won't take it back? (i called the ombudsman and asked to open a file to help me on this). how do i get them to take the loan back?

 

QUES: if DOE does take it back and i rehab it, will it go on my credit report? will this negatively affect my mortgage application?

 

----------------------------

 

- DOE told me that they sometimes "compromise" and i may be able to pay back all of prin + 1/2 of interest, or 90% of prin+interest.

 

QUES: if i deal with CA, will CA work this deal out for me?

 

QUES: if i deal with CA, can I keep it off of credit report? can they put it back on if i am not cooperative?

 

QUES: if CA does a wage garnishment, they would have to send me notice, correct?

 

----------------------------

 

- i am pre-approved for a mortgage. i want to keep this student loan off of my credit report.

 

QUES: is it better to rush and buy now, or wait until rehab-- i want the best interest rate possible for my mortgage.

 

----------------------------

 

- i also have an outstanding TERI loan (40k) that appears as a 2003 judgment on my credit report.

 

QUES: how long will this stay on my report?

 

QUES: isn't there an SOL for private loans? (these are Law Access Loans -- i think they were guananteed)

 

QUES: if i call TERI, what are the chances of negotiating a settlement? (15k is actual loan, rest are fees and interest)[/size]

 

THANK YOU!!!!!

[LynnInMN]

hello-- here is my situation:

 

- have 55k in FFEL student loans with DOE (+48k in back interest)

 

- allied interstate is working on DOE's behalf (added 25k in collection fees) as of 12/06

 

Allied doesnt add the collection fees....the DOE does.

 

- none of this is on my credit report (last loan was 1994)

 

You state that these were FFELP loans. If this was recently subrogated by the DOE, they WIll reappear on your credit report again shortly.

 

- i want to buy a condo and called DOE today and asked to discuss rehabilitating loan and having them take it back from allied interstate (absolute NIGHTMARE-ISH and verbally abusive people). DOE told me they can't take it back.

You are calling the wrong people. It is ALLIED that has to set up the rehab. .

 

QUES: they can't, or won't take it back? (i called the ombudsman and asked to open a file to help me on this). how do i get them to take the loan back?

 

Unless you have actual proof that Allied has committed violations, the DOE wont pull the loan back. Generally when a complain is real, they will simply shuffle you to another CA.

 

QUES: if DOE does take it back and i rehab it, will it go on my credit report? will this negatively affect my mortgage application?

 

If you complete the rehab, it will show a $100k student loan and its monthly payment of approximately $1100.

 

----------------------------

 

- DOE told me that they sometimes "compromise" and i may be able to pay back all of prin + 1/2 of interest, or 90% of prin+interest.

 

QUES: if i deal with CA, will CA work this deal out for me?

 

Yes.

 

QUES: if i deal with CA, can I keep it off of credit report? can they put it back on if i am not cooperative?

 

CA's dont report student loans. Only the DOE reports. And again, if this is a recent subrogation and the DOE puts it on, it will stay on.

 

QUES: if CA does a wage garnishment, they would have to send me notice, correct?

 

Correct.

 

----------------------------

 

- i am pre-approved for a mortgage. i want to keep this student loan off of my credit report.

 

QUES: is it better to rush and buy now, or wait until rehab-- i want the best interest rate possible for my mortgage.

 

 

You are going to have to explain to the mortgage company why Allied has been inquiring on your credit. Mortgage companies know what collection agencies collect and an Allied inquiry is going to be a red flag. At this point you are not elligible for FHA or VA financing.

----------------------------

 

- i also have an outstanding TERI loan (40k) that appears as a 2003 judgment on my credit report.

 

QUES: how long will this stay on my report? 10 YEARS at least. TERI regularly renews.

 

QUES: isn't there an SOL for private loans? (these are Law Access Loans -- i think they were guananteed)

 

SOL is moot at this point....they got a judgement.

 

QUES: if i call TERI, what are the chances of negotiating a settlement? (15k is actual loan, rest are fees and interest)[/size]

 

THANK YOU!!!!!

 

With Allied and a Teri judgement breathing down your back, you are crazy to be even thinking about getting in to a mortgage until this is resolved. Allied will hold the mortgage inquiries against you. When I was collecting, it I got a $100k account in my unit with a mortgage inquiry, I would be looking for hefty payments ASAP. If none where started within 60 days, it would go to garnishment. If the garnishment was appealed, at the hearing officer would be questioning the mortgage inquiry and other credit items and believe me, would not be giving you an easy monthly payments. Your interest right now is over $500 per month and your balance is now in the range the DOE does sue on. I highly recommend you get this cleared up first before even considering home ownership, or you are going to end up with a foreclosurer on your credit report too.

[NAN101]

- i am pre-approved for a mortgage. i want to keep this student loan off of my credit report.

 

QUES: is it better to rush and buy now, or wait until rehab-- i want the best interest rate possible for my mortgage.

 

Something you might want to keep in mind, even if this is not on your reports, there are two specific questions on the actual mortgage app (you probaby did not fill this out yet as part of your pre-approval) - One is "are you currently in default of any Federal debt?" and another "do you have any outstanding judgments or liens against you?"

 

Even if the are not reporting, but you are, in fact, in default and/or have a judgment/lien, answering anything other than truthfully is mortgage fraud - something you DON'T want to get involved in. It doesn't necessarily mean you can't get a mortgage, you just won't qualify for any FHA, VA, etc. (any type of Government backed) product.

Edited April 11, 2007 by NAN101

[miserableloangirly]

- i am pre-approved for a mortgage. i want to keep this student loan off of my credit report.

 

QUES: is it better to rush and buy now, or wait until rehab-- i want the best interest rate possible for my mortgage.

 

Something you might want to keep in mind, even if this is not on your reports, there are two specific questions on the actual mortgage app (you probaby did not fill this out yet as part of your pre-approval) - One is "are you currently in default of any Federal debt?" and another "do you have any outstanding judgments or liens against you?"

 

Even if the are not reporting, but you are, in fact, in default and/or have a judgment/lien, answering anything other than truthfully is mortgage fraud - something you DON'T want to get involved in. It doesn't necessarily mean you can't get a mortgage, you just won't qualify for any FHA, VA, etc. (any type of Government backed) product.

 

 

thanks for this, but i did answer truthfully on it and still got pre-approved.

[miserableloangirly]

thanks for all the helpful info.

 

i guess i'll let my boyfriend do the mortgage thing himself, which he can- it doesn't matter to me if my name is on the deed.

 

allied called me today and threatened to garnish my wages. I told them fine-- this was fine esp since I won't be working in 3 months (I am 6 months preggers) and have no plans to work after that-- will do freelance stuff once in a while.

 

i was just trying to do the right thing-- my boyfriend offered to pay monthy loans for me, but the allied folks were so abusive and harrassing that i refuse to deal with them-- they wouldn't even answer my questions-- will only deal with DOE. i guess the ball's in their court --trying to squeeze blood out of a turnip thru CA vs. some sort of monthly payment from me directly.

[Cynic]

i was just trying to do the right thing...

 

i refuse to deal with them...

 

trying to squeeze blood out of a turnip thru CA vs. some sort of monthly payment from me directly.

 

Dear Madam,

 

Your contribution to the federal deficit is not mitigated by people being mean to you. Not repaying what you borrowed and promised to repay was rather rude and abusive to your fellow taxpayers.

 

Your frivolous excuse for continuing to do the wrong thing has been qft.

Edited April 12, 2007 by Cynic

[miserableloangirly]

 

i was just trying to do the right thing...

 

i refuse to deal with them...

 

trying to squeeze blood out of a turnip thru CA vs. some sort of monthly payment from me directly.

 

Dear Madam,

 

Your contribution to the federal deficit is not mitigated by people being mean to you. Not repaying what you borrowed and promised to repay was rather rude and abusive to your fellow taxpayers.

 

Your frivolous excuse for continuing to do the wrong thing has been qft.

 

 

didn't come to this board to be judged, just for advice, which i do appreciate. why don't you talk to our devil president about our federal deficit and his contribution to it? it is xXXmillions greater than mine.

[LynnInMN]

i was just trying to do the right thing-- my boyfriend offered to pay monthy loans for me, but the allied folks were so abusive and harrassing that i refuse to deal with them-- they wouldn't even answer my questions-- will only deal with DOE. i guess the ball's in their court --trying to squeeze blood out of a turnip thru CA vs. some sort of monthly payment from me directly.

 

You don't have a choice to work to work with the DOE...they have assigned you to collections.

 

You owe $100k, you have been in default what sounds like for years, have no intention on working and you pull the old turnip line. Do you plan on living your life under the radar?? Hopefully you will never need governmental assistance like FEMA or SBA loans, or SSI disability...disabiltiy will be garnished. You won't be able to assist your child with school loans. As a have said before, loans in the $100k range and over are more likely to be sued on and if you used the word "freelance", you can bet your bottom dollar they have noted it. Self employment = judgement. That way they can seize bank accounts.

[NAN101]

I won't be working in 3 months (I am 6 months preggers) and have no plans to work after that-- will do freelance stuff once in a while.

 

Do you EVER plan to work? How will you approach your child's education financing? Remember, student loans have the ability to outlive you. These are really things you have to think about - long term, not just immedate. I would imagine at some point in your future, you're going to want to work (BTW - if freelance pays you via 1099, the IRS has this info and the payee can be requested to withhold payment for federal debt, extremely embarrassing, believe me).

 

What Lynn and Cynic are telling you is probably not what you want to hear, but, unfortunately, it's the hard truth. Getting your SL debt under control really is in your best interest, not just credit-wise, but for piece of mind. My SLs were in default for MANY years and I ignored them until one day I said enough - got a handle on them, rehabbed them, and can't believe I didn't do it sooner. It's definitely one less monkey on my back.

 

BTW - As far as the mortgage, you CAN be on the deed and not the loan. Of course, then you'll have property to attach. Really think about the whole situation - do you really want to live your entire life not being able to own a property, collect disability if the unfortunate need arises, etc.? No judging, just trying to point out the BIG PICTURE.

[LynnInMN]

You are pregnant and it sounds like you don't intend on working much. Are you ever planning on getting married?? If so, is he going to want this on his back, cause indirectly it will affect him. What happens when the relationship fails?? Maybe it sounds pessimitic but we live in a day and age of disposable marrages/relationships. You need to be realistic. Children should not be an excuse for not paying your bills, especially a bill you have avoided for years.