what does it mean when a loan has "lost its guarantee"... such as in the following... "a loan may lose its guarantee because of servicing errors or negligence on the part of the servicer or lender." Does this mean that the government isn't responsible for paying the lender for these loans?
Kit, Thats a really interesting question - does it say that on you're credit reports? If thats the case, I bet the original lender might have blew it recording you're notes, therefore the servicer will not touch them. You might remember me mentioning that when I requested validation, I was sent the four notes but two of them were blatently and obviously altered by the original lender - I'm still trying to figure out how I should handle that. Anyway, maybe something along those lines occured with you, and the servicer just washed they're hands of it all - you may just be sitting pretty -Sal
sal- no it is not on credit reports. However, I found some documents concerning loans handled by the original lender and servicer of my husband's loans. It says that loans made and handled by these companies (during the time period his were made) had lost their guarantee due to lender and servicer errors- I went on, and on about these "irregularities" in a previous post. Anyway, obviously they were guaranteed since the dept of ed is trying to collect on these. BUT I am thinking this may be why the dept of ed has a different original lender/servicer listed in their database- that is, different from the lender/servicer indicated on the promissory notes. Thinking perhaps the secondary lender that claimed these as default was not too anxious to reveal who the original lender/servicer was to the dept of ed when they filed their claim. May also explain why they waited 12 years to declare default! Just trying to figure it all out... still waiting for a response from the dept of ed, its been a few weeks now.
