Hello, thanks in advance to all here on CB

Anyhow today i called, Direct loans/dept of ed to start to pay on my defaulted loan since(2003)with many lates (120 days)multiple times throughout 2004 but said they have already sent to an CA (West Asset Management, Inc) i was like NO!!!

but after calling this CA, i was told about the Rehab option instead of full payoff, the bad news is that it will need to Rehab for atleast 12 months so that means no mortage (, but the good news atleast from what i was told by (West Asset Management, Inc) is that after Rehab all bad info including my past lates/ defaults with dept of ed/Direct loans would be deleted and not just shown as collection-paid.

Now from what ive read about CA in general is not good, so can i trust this to really happen after 12 months in Rehab or are they just blowing smoke to get some $$$

the strange thing is my loan is 1900 i offered a large sum but CA rep said to qualify for rehab i need only pay $25 a month for 12 months and insisted i not pay more, strange huh?

Its sad for me no new house this year maybe but sounds great about cleaning all bad info after rehab as if this is true i should have great credit if that happens... so is anyone familiar with this CA and can i trust them? lol

again thanks for your time and expertise..

If you have the funds to pay it off, do so!! Especially with a small balance. You will then get your mortgage...as long as this is paid off, you will qualify!

It depends on what your goals are.
If you want to clean up your credit then definitely go for the rehab program, but I don't see why you only have to pay $25.00 a month (maybe someone else can chime in).

If your immediate goal is to get a house then I would suggest you payoff your loan, however please know that your score probably would not improve by paying it off and it would more than likely decrease. Also it would still show all the times you were late. Your comments would look something like this.
Paid, was 120 days late 24 times.

If you can hold off 10-12 mths on buying the house I'd definitely say do the rehab program.

I am in the same boat as you my 11th pmt is due on the March 1st.

thanks for your opinions, i think i can wait for the house, rehab for me, cant keep that crap on their for 7 years.

But is this true? will the CA clean all 3 CRA? after good rehab of course...

bump