I finished my rehab program in April 2005. Since then I have been making payments on time to the orginal lender as planned. My loan is still reporting as defalted with all the the late payments under adverse accounts. Maybe I misunderstood what was going to happen after rehab. Could someone refresh my memory? How should it be reporting now and how do I get it fixed. Thanks You for your time.

Can you tell us who the original lender is? If you're making payments to a guaranty agency, it will continue to show as defaulted until it is picked up by another lender.

Now that I reread your post, I'm a little confused. You say you're making payments to the "original lender as planned." Planned by whom? Is this the same entity that you rehabbed with?

The orginal lender is Granite State Management. When I defalted it went to a CA. I can't think of the name right now. I entered and finished the rehab program with them. After I completed the Rehab program my orginal lender bought the loan back. I hope this makes better sense.

Oh, ok ... so your loans were re-acquired by the original lender. Yes, that does make sense.

So the problem is that the default notations haven't been removed from your credit report - are those notations from the original lender or from the CA? Probably your best bet to get those removed would be to send a goodwill letter and ask for the notations to be removed now that the loans have been rehabbed. I don't think the notations HAVE to be removed, but the DOE does encourage lenders and CAs to remove them once the loan has been rehabbed and sold.

I hope this helps!

The TL is listed as the orginal lender. Should I send the goodwill letter directly to them?

Ummm ... is it listed as the OC on a PrivacyGuard/MCK/BoAPS type report or is it on the actual CRA report?

If it is on the actual CRA report that way then yes, send the goodwill letter to the original lender. If it's on a PG/MCk/BoAPS report, pull a real report to see how it's being shown.

It's showing up as the orginal grantor on the credit reports directly from the credit reporting agencys. I'll try the goodwill letter and see it it works. Thank you for your time.