Maybe this is a silly question about defaulted loan...

[fetching]

I have a question that I was wondering if someone could give me advice on. I have a student loan in good standing after it was previously defaulted on and subsequently rehabbed. But, another one which was originally with Sallie Mae, eventually ending up with General Revenue is still considered to be in default. The balance on the loan is $24,000 give or take and seems to fluctuate daily. I am paying General Revenue $95 a month for the first two loans (installments) that came to them. I have been paying this for over a year. Technically, according to the statements, it should be out of default, but is not showing that way. Four more installments (and that's it) have shown up with them as I have noticed on my statements that I get from them each month. They haven't stated that I need to pay more, but on my credit report it is all coming up as past due. I really want to apply for an FHA mortgage soon, but obviously can't until this is out of default.

 

Now, here's another question....does anyone know if you always have to go through the "rehab" process or if you can make a lump sum payment to get it out of default. Would that lump sum payment be the $24,000? Gosh, I hope not.

 

Oh, and sorry, one more question...if you rehab a student loan, should the entire slate be wiped clean on your credit report or does it still show on there when you were originally late...like for the past 12 months showing paid O.K., but still showing 120 days late for the previous 12 months when you originally defaulted.

 

Any help would be greatly appreciated!

[LynnInMN]

I have a question that I was wondering if someone could give me advice on. I have a student loan in good standing after it was previously defaulted on and subsequently rehabbed. But, another one which was originally with Sallie Mae, eventually ending up with General Revenue is still considered to be in default.

 

Is this a federal loan?

 

The balance on the loan is $24,000 give or take and seems to fluctuate daily. I am paying General Revenue $95 a month for the first two loans (installments) that came to them. I have been paying this for over a year. Technically, according to the statements, it should be out of default, but is not showing that way. Four more installments (and that's it) have shown up with them as I have noticed on my statements that I get from them each month. They haven't stated that I need to pay more, but on my credit report it is all coming up as past due. I really want to apply for an FHA mortgage soon, but obviously can't until this is out of default.

 

Now, here's another question....does anyone know if you always have to go through the "rehab" process or if you can make a lump sum payment to get it out of default.

No

 

Would that lump sum payment be the $24,000? Gosh, I hope not.

 

Oh, and sorry, one more question...if you rehab a student loan, should the entire slate be wiped clean on your credit report or does it still show on there when you were originally late...like for the past 12 months showing paid O.K., but still showing 120 days late for the previous 12 months when you originally defaulted.

 

Only the guarantors tradeline is changed to positive...Sallie Maes tradeline would remain.

 

Any help would be greatly appreciated!

[wideeye]

BTW, General Revenue IS Sallie Mae - the collection company subsidiary.