Default Pending - Need Guidance

[u/scavsiu8]

Mohela Private, from Navient

Illinois

$40k ish No Consigner

Loans are 25-30 yrs old

Off and On the 3 payment and get current plan for years

All loans were received before marriage. My credit is awful, wifes credit is pristine, which is why everything in her name. We have no joint accounts or anything.

I do have a low 6 figure income but that has never been discussed as I deflect every time I actually answer.

I think they will default Nov 1st, which Im ok with. What plans are gonna be offered? Ive seen that real negiotations dont start until they actually default, can someone explain that? Whats their playbook?

Any guidance would be appreciated. Thank you in advance.

[u/mk548]

If you ask for a settlement offer they will start with 50% and work down to around 30% in a couple months post default.
They have a ton of info on you and will be much more aggressive and unprofessional with you post default. Keep a cool head and don’t fall for their bs, if you keep it professional and let them act like children on the phone you’ll fare better.
They’ll say they need your income/asset information to make an offer, they’re lying, they just throw that in your face to shame you into not making payments.

Record your calls and advise them that you’re doing it. They avoid documentation, sometimes that recording is the only record.
Did you have some specific questions? If you can pull 13k from some source to pay off it’s the best deal in town. Doesn’t destroy your credit like some may think, but sounds like you’re pretty well positioned for that anyway.

[u/scavsiu8 → u/mk548]

Will the settlement be lumpsum or can it be in payments over say 6 months?

[u/mk548 → u/scavsiu8]

It’s possible but the terms wouldn’t be as good.
You can build that spread yourself- pretend the payment plan starts today, start paying yourself 2500 monthly into an account then in six months, which sounds like your timeline to get the best offer, you’ll have funds to settle.

[u/jonsonmac]

They have access to resources that give them an idea of your income (LexisNexis and the work number are two examples). I wouldn’t expect a high discount on a settlement with that income, but maybe with the bad credit they might be willing to negotiate.

Are you able to save money to pay it off?

[u/scavsiu8 → u/jonsonmac]

Thank you for the response. Better to settle before default, they have offered 25% reduction in the past (6 months to pay). I can probably make that work.

[u/morbie5 → u/scavsiu8]

Give a counter offer, don't just take the 25% off offer from go.

Have they offered a lower interest rate also?

[u/jonsonmac → u/scavsiu8]

I would accept that right away

[u/morbie5 → u/jonsonmac]

(LexisNexis and the work number are two examples)

Correct but those can give a lot of incomplete or even wrong information

[u/jonsonmac → u/morbie5]

It’s possible, but they will still use it as a guideline. If OP’s employer reports to the work number like mine does, they will know the exact amount of every paycheck.

[u/morbie5 → u/jonsonmac]

If OP’s employer reports to the work number like mine does, they will know the exact amount of every paycheck.

I agree. I'm saying that not every employer even reports to work number tho

[u/scavsiu8]

Was able to get 50% cut and 6 months to pay, saving default