In the last few days I put an offer on a house and attempted to get a mortgage and was declined because of my student loan.

 

The mortgage company has come back to me and told me that if I get my student loan dealt with, that I would then qualify.  Although my loan is close to 30k with interest at this point, which means my down pmt for a house is then gone, so whats the point.  (Also from what I understand your student loan stays on your credit report forever)

 

I have spoke with the hired guns (Global for CIBC) to try to negotiate a settlement which they told me based on the info that I provided (yes I undersold my income level) that I would need to pay 22k, if I wanted to pay less, I would need to send in a hardship letter, with proof of income expenses etc. etc., and we all know what that means......  "Acknowledgement of debt" and another 6 years to collect.

 

My 6 years limitations reaches April 15th 2014

 

I have considered contacting CIBC to see what type of low ball they would be willing to accept, but I have no idea what they would be willing to accept (I was thinking 10% of initial loan, considering soon enough legally there will be nothing they can do), but I also have concerns that if I do contact them this will light the fire under them to try to place a judgement on me.  I expressed this concern to a friend of mine (who has a little bit of info on how limitations etc work) and they told me that it would take at least 60 days for a judgement to be issued and by that time it would be past limitations.

 

So the question is, should I contact CIBC and give a low ball offer?

Will they try to rush to get a judgement on me considering limitations are weeks away?

Does the loan ever come off your credit report?

How do people manage to get mortgages with this on their credit report if it never comes off?

 

Seems the only way I can purchase a home is if I get rid of this debt, but not sure right way to do this and everything seems to be coming to a head at the same time.

 

Any suggestions or answers?