student loan and having a house. | DebtConsolidationCare

You say you "was" in default and that you just started making pa

You say you "was" in default and that you just started making payments. Making payments does not resolve a default. If this is the case, you want to look at rehabbing your loan to bring it out of default.

You will find it very difficult, if not impossible to purchase a home with a student loan in default. Mortgage lenders right now are very picky and these troubled times. With the default, you are ineligible for all FHA and VA mortgages.

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lrhall41

Submitted by SOAPLADY on Wed, 05/14/2008 - 05:17

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Ok so I just pulled a credit score and it said I am at 770. Is

Ok so I just pulled a credit score and it said I am at 770. Is that possible with a student loan that was in default? I have not rehabbed it yet. Looked on my credit report and no student loan there. Plus my original question, if I am making payments will they automatically attach the house and I lose the power to negotiate a payoff of the loan?

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lrhall41

Submitted by spartacusri on Tue, 05/27/2008 - 16:36

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You have an old loan that has fallen off your credit report. Ho

You have an old loan that has fallen off your credit report. However you still have a government default and the mortgage company will find it...there is a data base that they check. Also a lot of mortgage applications do ask about defaulted government claims. The bottom line is the default will result in higher interest and refusal of a lot of mortgages. On the flip side, when a CA sees a mortgage inquiry, they may cancel your payment plan and demand payment in full or signicantly increase your monthly payment.

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lrhall41

Submitted by SOAPLADY on Wed, 05/28/2008 - 04:37

( Posts: 17315 | Credits: )

Thats what I am worried about. I am going to go look at a hous

Thats what I am worried about. I am going to go look at a house only because it is in my price range and will actually be the same as my rent. I figure why pay rent if I can own for the same monthly amount? My goal as always is to pay off the loan in a lump sum. Right now they want 30k. I am worried that if I buy a house they will attach and I will lose negotiating power and they will want the full amount which is 47k right now after penalties and compound interest.