Defaulted Student Loan

[BlessedMom88]

@TTrumble can you clarify please and anyone else with helpful info! Recently attended my intake. I had a lot of info entered. One of the counselors mentioned that since my last late payment dated 9/19 which I stated was my defaulted student loan she stated that I would have to make 12 payments versus the 6+ I have already made pushing qualification back to September. I read a few posts similar to this issue and I read where Mr.Trumble stated defaulted loans would be considered rehabilitated after 6 months 6 payments. Am I reading wrong has this policy changed. Is this at the discretion of the underwriter, etc?

[Alikay]

I don’t know what the written policy is but my husband accidentally missed 3 payments because of miscommunication. His payments were under review and he thought they communicated that payments were suspended turns out they were not… Only knew he had 3 missed payments because his credit score plummeted… He had to wait 12 months before he could qualify. So I ended up being qualified alone. Weren’t happy because I felt that was the only issue with our finances that was obviously a mistake not because of an inability to pay but they still didn’t qualify him.

[TTrumble]

Hello BlessedMom88,

You need to get back in touch with your counselor and have him or her contact either their supervisor, regional director or our in-house help line for clarification. You are right, we do consider student loans rehabilitated after six months.

I do have to note that obviously I don’t have all the exact details of your situation, but based strictly on what you wrote, six months should be enough for you to proceed.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[BlessedMom88]

Thank you! I just wanted to clarify! I mentioned this to my counselor prior to your response so I will send this to her as well! Thanks again for the help very much appreciated! I was also able to get the settlement offer I received from the defaulted loan and my payment history is uploaded already! I see too much paperwork is always best as I start this process!

[TTrumble]

Hello Alikay,

In your case, it wasn’t the miscommunication that caused the delay. It was the fact that it took three months to catch it.

After you missed the first payment, you would have received a letter from the servicer as a reminder/inquiry about what happened. Had you corrected the situation at that point, you would have probably not had a problem. One late payment in such a case can often be overlooked, but three months can’t be ignored. That’s what would have caused the setback.

Tim Trumble
Online Operations, NACA
ttrumble@naca.com

[Alikay]

We didn’t get any notification about the payment but it’s all good. No way we would ignore it! We have no late/missed payments for 5 years! We’ve passed that year mark now in any case. But appreciate the clarification.

[mrstaylor]

@TTrumble I’m currently trying to get qualified and I’ve been told by two MC’s in my local office that the lender NEEDS to see 12 months of payments on defaulted student loans, even though the rehab program I’m enrolled in is 9 months long. They still need to see 3 payments once it’s out of default. My biggest issue with this is this is a household members (my husband) student loan.

I noticed in the work book it says 3-12 months of on time payments. But each MC says that information is not true with BofA.Could you clarify if this is correct?

[HollyStead]

thank you for this useful thread

[aminmohamadizadeh]

tnx dear admin

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