Student loans in collection

[Carl Stigall]

Hey BP, I'm currently in a situation where I'm too much of a liability for any type of loan or mortgage. My student loans are in collections and I'm currently in a rehabilitation program to get my loans out of default, but in the mean time I have no way to aquire any properties unless I pay all cash. Does anyone have any advice in this situation other than "wait it out." I talked to a loan officer yesterday and he said there is no way that I can get approved for any mortgage with student loans in collections, is this true?

[Amy Beth]

This is probably not what you want to hear but if you have not been able to afford even the minimum on your student loan payments you are not in a financial situation to buy real estate.

It may be more useful to either increase your income, create a monthly budget that allows u to pay all of your bills and increase your savings, and/or sell any cars with loan payments and buy a beater car. If you are able to follow some of these suggestions you will be in a better financial position to afford real estate.

If you can't afford the minimum payments on your current loans you are setting yourself up for disaster taking on additional risks: