rehabbed and now waiting for DL response

[jmo]

I realized I should start a new thread, so...

 

I guess there is a world of SL info I still dont understand. I went through the rehab process and have just applied directly with DirectLoan to consolidate. I now wonder if this was the right move? I would have consolidated in a minute 2 years ago if I had only known it was a possibility.

 

I read from LynnMinn:

"(We got commision on rehabbed accounts.) Consolidation was our bread and butter....that is where we made our money. Consolidations (on average) had over an 90% success rate. There were always those who wouldnt sign, would disappear again or just didnt want to pay. I used to aim for setting up $500k in consolidations every month."

 

funny, I was having my wages garnished in NY (through HESC) to the tune of $1050 per month because I was working a lot of overtime. I left it that way for a year thinking it to be an efficient way to pay down the loan. boy was I wrong! turns out HESC added $15k in collection fees, so I was even further behind, despite having made 12k in payments, AND these 12 garnishment payments were not considered "voluntary" and so did not count towards rehabbing the loan.

 

HESC never mentioned loan consolidation to me. I finally suggested rehab to someone at HESC, knowing nothing about how it worked. they started the process but would not take anything less than the whopping $1050 I had been making working all that overtime, forcing me to work another year of heavy overtime in order to make the payments they set up.

 

now that I'm done with the 9 payments, it's no wonder I have received about 6 phone calls suggesing loan consolidation! they even passed my info to sallie mae (after i specificly asked them not to). a lady at HESC told me she would send me the paperwork all filled out to apply for consolidation through direct loans (dept of ed) and for me to wait. I had already applied on line, but to date have received no answer.

 

any idea how long should it take for DL to get back to me on this?

have I done the right thing?

Edited January 3, 2008 by jmo

[LynnInMN]

I realized I should start a new thread, so...

 

I guess there is a world of SL info I still dont understand. I went through the rehab process and have just applied directly with DirectLoan to consolidate. I now wonder if this was the right move? I would have consolidated in a minute 2 years ago if I had only known it was a possibility.

 

You have made the required rehab payments...has your loan actually be transfered to a lender??

 

 

funny, I was having my wages garnished in NY (through HESC) to the tune of $1050 per month because I was working a lot of overtime. I left it that way for a year thinking it to be an efficient way to pay down the loan. boy was I wrong! turns out HESC added $15k in collection fees, so I was even further behind, despite having made 12k in payments, AND these 12 garnishment payments were not considered "voluntary" and so did not count towards rehabbing the loan.

 

Collection fees are a mandatory charge. Garnishment payments have never been considered a voluntary payment.

 

HESC never mentioned loan consolidation to me.

 

You cannot consolidate while you are being garnished....that is why no one mentioned it.

 

I finally suggested rehab to someone at HESC, knowing nothing about how it worked. they started the process but would not take anything less than the whopping $1050 I had been making working all that overtime, forcing me to work another year of heavy overtime in order to make the payments they set up.

 

now that I'm done with the 9 payments, it's no wonder I have received about 6 phone calls suggesing loan consolidation! they even passed my info to sallie mae (after i specificly asked them not to). a lady at HESC told me she would send me the paperwork all filled out to apply for consolidation through direct loans (dept of ed) and for me to wait. I had already applied on line, but to date have received no answer.

 

any idea how long should it take for DL to get back to me on this?

have I done the right thing?

[jmo]

Collection fees are a mandatory charge. Garnishment payments have never been considered a voluntary payment.

 

I'm saying -- that is exactly what I wish I knew. even though I had several conversations with HESC before, during and after the garnishment process, no one ever mentioned any alternative (short of paying off the entire 50k). finally, I asked if I would just be garnished forever? or what are my options?

 

I guess my question is exactly your question -- how can I know if/when my loan is transferred to another lender? any idea of how long that process takes once the application has been filed with directloans? it's been 45 days.

[LynnInMN]

Collection fees are a mandatory charge. Garnishment payments have never been considered a voluntary payment.

 

I'm saying -- that is exactly what I wish I knew. even though I had several conversations with HESC before, during and after the garnishment process, no one ever mentioned any alternative (short of paying off the entire 50k). finally, I asked if I would just be garnished forever? or what are my options?

 

Collection fees would have been mentioned several times in the pre default/default letters.

 

 

I guess my question is exactly your question -- how can I know if/when my loan is transferred to another lender? any idea of how long that process takes once the application has been filed with directloans? it's been 45 days.

 

 

My first question is....has your rehab gone thru?? You should have received a letter stating that "we are your new lender/servicer". Rehab and consolidation are two totally different processes. You must continue making voluntary payments until you are told you can stop. I am still clear if you have truly completed the rehab.

 

 

An application for consolidation should not be submitted until after that letter has been received or the CA/guarantor telling you that your loan has been rehabbed.

[jmo]

thanks,

 

HESC has been telling me I'm "ready for consolidation" on the phone for 3 months now, but i was unaware I needed a letter stating my loan is rehabbed. I didnt get that in the mail yet, so I will make a call. and dont worry, I will not discontinue making voluntary payments until I am told to stop.

[LynnInMN]

thanks,

 

HESC has been telling me I'm "ready for consolidation" on the phone for 3 months now, but i was unaware I needed a letter stating my loan is rehabbed. I didnt get that in the mail yet, so I will make a call. and dont worry, I will not discontinue making voluntary payments until I am told to stop.

 

 

But if you are going for rehab, they should not even be discussing consolidation!!!!!!!!!!!!!!!

 

Look...you need to call them and tell them that you want to rehab, NOT consolidate. However, you may have already screwed yourself by submitting a DL application. If the DL does thru before the rehab, it will do absolutely nothing for your credit.

 

Moral of the story...NEVER submit a consolidation application before a rehab has been confirmed by the new lender as completed.

[jmo]

thank you for your response. I phoned HESC this morning.

 

and for those of you who dont know, once you have made the required (9) payments to rehab your loan, the next step is a rehabilitation application that must be filled out and approved. this is the step that gets them to remove the default notation from your credit reports. if you apply to consolidate and skip this step, then your credit report will never improve.

 

this was never clearly stated to me, despite hundreds of telephone calls of HESC reps trying to get me to sign the papers to consolidate. oh well, for whatever reason it isnt being reported on my Cr anyway.