Unsure how to handle defaulting sallie mae
Posted by nickbandicoot@reddit | studentloandefaulters | View on Reddit | 14 comments
Unsure how to handle defaulting sallie mae
My wife has about 70k in sallie mae loans. For the longest the payment was about $1350 a month. We made those payments for couple years but eventually we just couldn't do it anymore. After reading some posts on this subreddit i decided to have her stop making her payments in attempt to have them enroll us in a help program. Eventually after many calls and them telling us they won't enroll us they eventually called us and allowed us to put a few of her loans in a rate reduction plan reducing our payments to around 900. She also has about 25k in federal loans but based on her income she hasn't had to pay them.
Fast forward to today times have gotten hard prices going up and have a kid on the way in November. Ive had just about enough of sallie mae and am ready to default on the loans but trying to figure out the best way to do it.
Some important information we own a home and have two paid off cars. Both cars are in my name and have no connection to my wife. The house mortgage is all in my name but her name is on the deed. Other than that everything is under my name she only has 2 credit cards and just the sallie mae loans and federal loans.
First question would it be wise to pull her name off the deed to avoid any action taken towards our home?
Second question should I expect sallie mae to sell the debt off and deal with a collections company? And how soon could that happen.
And final question should I look into hiring a lawyer to help this process, go through a debt help company, or tough it out ourselves.
Thank you in advance for any insight on past experiences!
Zestyclose_Lion2734@reddit
Sallie Mae would not be a secure debt so your home is safe. I am currently working with a lawyer and the payment is 2100 for 48 months. This is assuming my lender accepts their negotiation
nobutokaywhatever@reddit
They sure the shit will sue you for it though and put a lien on your home. Signed, Person who was cornered into a default because they wouldn't make me any realistic payment plans.
I got an attorney to help me with a strategic default. They later sued my consignor (my mom, who agreed to the strategic default) and guess why they chose her and not me? Her name was on the deed to the house. They won't "take your home" but they will put a lien if they win the judgement (and they will).
My attorney was able to help us settle it. We were only able to settle for about 25k less than owed. They had all the power there since they knew they could just get a judgement for the full amount and get it from my parents home.
It was ugly. It sucked. My parents had to take out a home equity loan. But the nightmare is over.
Zestyclose_Lion2734@reddit
My cosigner is also represented with our lawyer. Im hoping it will go smoother since our representation started before the default occurred. To be fair, I tried to refinance but they denied it. Now they can hash it out with the lawyers and we will see
nobutokaywhatever@reddit
I got my attorney involved before collectors bought my debt (which will eventually likely happen if it sits unpaid long enough). He issued letters of rep to them to stop contacting me and my family and only through him. They did. We knew they'd likely eventually sue and they did about maybe a year after I got the attorney. He then represented my mother during the lawsuit. It was awful to put my mom through that, but I had sat down with my family when I finally decided to to the "strategic default" and more or less told them I didn't know how I could continue living my life with it hanging over me and that I just could in no way ever pay that much. By that point I had been trying to get Sallie Mae to work with me for about 5 years, filing for deferments, going to school part time to keep them out of repayment, etc. and eventually it just had to come to an end.
My parents always felt bad that they didn't pay for my college and now in a weird way I think they are grateful they were able to help me when this came to a head. But, it sucked so much.
BallDry7304@reddit
Im in this exact situation, who is your lawyer? I cannot afford one.
Zestyclose_Lion2734@reddit
Your lawyer didn't try to negotiate before the lawsuit?
nobutokaywhatever@reddit
I really had nothing to negotiate with at the time. Our plan was to wait and see if sol ran out (unlikely) and work on coming up with settlement money should we be sued.
Zestyclose_Lion2734@reddit
I see. My lawyers are negotiating before I am technically in default so im hopeful.
RecordingMountain585@reddit
I think it really depends on the amount of the debt. I had a debt of $9000 its been 4 years already. Waiting for SOL to run out in 2 more years hopefully.
Mine was moved to a collection agency about a year ago. I don't live in the United States anymore, so I guess it may be harder serve me although there are other ways.
nobutokaywhatever@reddit
I do think amount makes a difference. Mine was around 85k. They may not find it worth their time if it's lower
RepulsiveSea2174@reddit
I think they look at everything as a whole. The loan amount and if you have co-signers. If you didn’t have a co signer that had assets which in their case was a home. Would the outcome have been different probably so. Since you would have been considered judgement proof. If you didn’t have a co signers and no assets they would know they wouldn’t ever be able to get any money from you anymore.
nobutokaywhatever@reddit
OP feel free to message me. I've been through this. Was sued for my Sallie Mae debt. Like you, I was never able to get them to make me a reasonable payment plan.
RecordingMountain585@reddit
How much was your debt?
FearlessInflation92@reddit
Interested to see what happens. I am in your wife’s same exact situation, but everything including the house and cars are in my wife’s name