Can a judgment be Consolidated????

What do you guys think? Doesn't sound right to me.

A little history..I have an unpaid judgment on my EX CR. I just received notification from the OC that they are recommending to the CA, that I send my payments to, to consolidate the debt. What does that mean?

Sounds to me like they're confused.

If you had 2 or more judgments, it would make sense. Can't imagine how you'd consolidate one judgment.

Thanks for replying Christine.

The judgment consists of two defaulted Perkins School loans and tuition that I did not pay after graduating college. My college sued me for these three amounts and received a judgment against me for the total.

I just received a letter from the school, after they pulled a hard inquiry, saying they pulled the inquiry to make a recommendation to the collection agency(that I make payments to) to consolidate this judgment.

I'm really confused, not sure what that means. Of course the school says this could possibly lower my interest rate! But how could this be, the interest rate on judgements are determined by the state - in this case Cali which is 10%.

Any thoughts??

Yeah, call the school and ask, and follow up via fax if it's important.

Specifically, ask how low your interest rate will be. They may have the account set up as different loans with the collector.

Can't you cut a deal with them and pay it off and have them vacate it?

Also, they were NOT supposed to pull a hard inquiry, it's an account review. Have that changed with the bureaus if scores matter.

OK...spoke with attorney for the collection agency. He says that there is a company or gov't agency that will "consolidate" the loan, therefore satisfying the judgment! The company is Direct Loans http://loanconsolidation.ed.gov/index.shtml . I plan to call them today to see if this is true and to apply for this loan. From looking at their website, the interest rate is still high - could be about 8%, but at least the judgment will be satisfied.

Any knowledge of this company/program?

Spoke with a CSR at Direct loans and according to her, they will not consolidate a loan that is in judgment status. The judgment must be vacated first, then I can apply.

How do I get the OC/CA to vacate the judgment so I can consolidate this loan? I have a call in to the school, waiting for a call back. Any suggestions or negotiation tips?

Thanks!!

I just updated Federal - Student loan rehab - Discharge - Cancellation (http://www.bayhouse.com/credit-forum/showthread.php?s=&threadid=90)

Have to say that the government's constant changes without notice really are annoying - so DO check the actual links.

I've never before heard of a student loan judgment, nor of a school suing, since normally the guarantee agency pays the school.

Don't know what makes Perkins loans different. It seems like you're in a catch 22, and I have no idea why they'd vacate that judgment before it's paid, but it doesn't cost anything to try.

I think it's time you use the fax, say "Yes, I want to consolidate" and copy everybody on everything.

The logical way to do this would be to send the filing to vacate the judgment to Direct Loans, and then THEY record it once you signed the new loan docs and they paid the school. Something like that ...

It sure would be nice if you could get the judgment vacated and get the type of consolidation (rehab) loan that leads to the deletion of all derogs after 12 monthly on-time payments.

Originally posted by Christine
Can't you cut a deal with them and pay it off and have them vacate it?

Took your advice. Spoke with the school accounting dept. manager. She will discuss a settlement amount with the CA and get back to me on Mon. to make an offer.

Christine, thanks for your help.