I did a search hoping to find out any information about this. My boyfriend defaulted on his loans and they

were turned over to a CA. The CA advised him that after 12 consecutive monthly payments, the loan would

be rehabed. I looked online, and got the details of the rehab program which sounded fine. At that time the

only thing was the program was be applied for. I contacted his lender, and they had no idea a)which CA was

collecting on the loan. that my boyfriend had been located (he was listed in his credit report as unable

to locate) and c) that he had made any payments on the loan. They referred me back to the CA, I requested

something in writing concerning this matter, of course they then advised they couldn't speak with me

concerning the account as I wasn't his spouse (before this, they had spoken to me numerous times as he

works long hours, and gets off after most places are closed.) He has made about 6 payments so far. Any

advice how he should proceed?

[quote name='naughty_nikki' date='Feb 14 2006, 01:10 AM' post='1287487']
I did a search hoping to find out any information about this. My boyfriend defaulted on his loans and they

were turned over to a CA. The CA advised him that after 12 consecutive monthly payments, the loan would

be rehabed. I looked online, and got the details of the rehab program which sounded fine. At that time the

only thing was the program was be applied for. I contacted his lender, and they had no idea a)which CA was

collecting on the loan. that my boyfriend had been located (he was listed in his credit report as unable

to locate) and c) that he had made any payments on the loan. They referred me back to the CA, I requested

something in writing concerning this matter, of course they then advised they couldn't speak with me

concerning the account as I wasn't his spouse (before this, they had spoken to me numerous times as he

works long hours, and gets off after most places are closed.) He has made about 6 payments so far. Any

advice how he should proceed?


I am a newbie, so probably won't be much help. I had the same thing happen to me. After the 12 months, the lady last night told me it would no longer interfere with your credit reporting online, nor your federal income taxes. I haven't even done my taxes yet. They have never kept my taxes, so I am pretty afraid they will this time.

Hmmmm...So you went all 12 months without contacting/being conacted by your lender? Hey, if it's normal,

it's normal. I just find it odd that the original lender has no idea that the loan is being repaid? They also

had no idea that my boyfriend had "resurfaced?" It just seems as though they should know SOMETHING!

But, if that is how these things are done...

Yes, I did and they supposedly could not locate me either. I hope an expert can answer better than I can. I do not understand it myself.

I can't really "talk" as I'm getting ready to go into a meeting, but the original lender has NOTHING to do with the rehab your bf has arranged with the CA. If the loan is in rehab, that means that your bf defaulted and the original lender is no longer involved; it was sent back to the guarantor.

Who is the original lender and who is the CA?

The guarantor will have no notes on their files as the CA and the OC data bases do not interface. The guarantor will have record of the payments. So it would be totally normal for the OC not to know about the rehab, since they do not get involved when a CA is assigned to the account.

The CA is not required to put anything in writing about rehab. To put it in writing would imply a new contract which is in violation of the original contract. Dont worry though....rehab is regulated by the HEA.

I guess I phrased the question wrong. Yes, the people I had been talking to were the loan guarantee-ers.

The lender was Citi. Thanx for clearing that up for me. The CA is Wyndham Professionals. We're in

Illinois. Thank you guys so much for helping with this. We were getting quite worried. I will do another search

but, if one is reading it, and bored could s/he advise what happenes once he has made the 12 payments?

Meaning, will the CA get the status changed from default to paying as agreed? Or must we remember to do

it? Or...? Is it like an application thing, were he must be "approved?" Almost like an appeal? Or...??

Once 12 on time monthly payments have been , you can request an app for rehab. The loan is basically reinsured and brought out of default as a new loan. The lender will review the payments and the payment history if all the payments were on time with no missed months, the loan will rehab. The CA does nothing with credit reports...that is completely up to the reporting guarantor. The guaranor has 90 days to remove the default status. However any negative tradelines with Citibank will not be changed.

Thanx for answering. May I ask what exactly did you mean when you said the negative T/L will remain w/

Citibank?

In short, the tradeline with Citi will be unaffected by rehab. It will stay on your credit report.