consolidation tradeline

There is no way that the guarantor will remove the default status before the rehab is complete. There is no way to get around it either. If you consolidate, it will be a paid default which should qualify you

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Assigned to the government means default. Creditors know what a student loan default reports as. Also,mortgages companies have a system they log into that will reveal the default

Nothing will remove the first lenders tradeline, even rehab. They filed the claim and their tradeline remains. Rehab only removes the guarantors negative information.

Mrs. Soaplady, I called the direct loans consolidation and they told me that I can't consolidate because i am currently in the rehabilitation program. They said that I have to finish this first before I can consolidate. Is this true? If i fill out the online app will they turn it down because it is currently in rehab?? I need to do this before April 30th, I need to do it fast!!!! They said it gets done in 45 days. thank u for your help

I reread...you are defaulted consolidation loan right? Then you must complete rehab first because you already defaulted on a consolidation loan.

Sorry, but there is not going to be any way around this. You will not qualify for FHA while this is still in default.

Mrs. Soaplady, im sorry for the confusion and appreciate your help. I had loans through through aes that defaulted, and then assigned to NJ dept. of ED. These are still in default but are in the process of rehab for 5 months now. I never consolidated, I defaulted then I started rehab. I was told by direct loans since I started and am currently in rehab I can no longer consolidate through direct loans, must finish rehab. I had a online consolidation service rep say I still could consolidate with federal direct loans even while in rehab, it would cancel rehab and consolidate, he would do it for a fee. Just wondering which is true... thanks for ur time

For a fee??? Run, run very fast. You dont need to pay anyone to consolidate. Simply go to the Direct Loan Consolidation website and apply.

Technically there is no such thing as a rehab program. You make 9 payments to qualify for your loan to be rehabbed. There is no official program.

Yeah the fee was from an online consolidation service. Im gonna take ur advice and fill out the direct loans application. Hopefully even though its in rehab they consolidate it. Hopefully it gets done before april 15th, need it to be done so i can get a fha mortgage before the april 30th deadline for tax credit. If i paid it off in full before consolidating could i settle for the principle and save collection fees? Is a consolidation better than a paid in full on credit? Sorry for never ending questions, thanks..

Your collection fees and interest will be capitalized into the loan if you consolidate. If you wish to settle, at most they would settle on the collection fees...however with mortgage inquiries, they may not wish to budge much.

Consolidation will bring your loan current and you will have a new tradeline. Guarantor shows consolidated or transfered...but it is still a paid collection Paid or settled in full is simply a paid collection. Both will qualify you for your FHA loan.

So i am going to fill out the direct loans forms, the service rep stated it takes about 45 days to go through. If i am approved and it takes a lot longer than that, can I cancel the consolidation so the rehab is still in place? Reason why I ask is if the consolidation goes through too late and I am unable to get a fha loan before 4/30 I would like to still rehab the loan so that I can get it off my credit completely in 4 months, instead of the consolidation tradeline. I am currently trying to get a condo because of the tax credit for first time home buyers, but if I can't I would rather finish rehab. thanks so much...

So i am going to fill out the direct loans forms, the service rep stated it takes about 45 days to go through. If i am approved and it takes a lot longer than that, can I cancel the consolidation so the rehab is still in place? Reason why I ask is if the consolidation goes through too late and I am unable to get a fha loan before 4/30 I would like to still rehab the loan so that I can get it off my credit completely in 4 months, instead of the consolidation tradeline. I am currently trying to get a condo because of the tax credit for first time home buyers, but if I can't I would rather finish rehab. thanks so much...