National Collegiate Student Loan Trust is out to get your money and have a great business model to do it! They buy up your defaulted private student loans here in New Jersey, then sue you to collect. You may have received the court paperwork years ago, figured there was nothing you could do, and ignored it. Nothing happened afterwards, so you probably figured you were okay.
Unfortunately, if you a homeowner here in the Garden State, you are far from okay!
NJ Judgments on Student Loans Are Real Estate Liens
Judgments in New Jersey can be recorded as liens against real estate, indexed by your name. Any time a title company does a lien search as part of its insuring of a transaction it does what is called an "upper court search" by your name. If NCT has recorded your judgment, this would be a lien against your home!
This can easily be a major problem for you if you are trying to sell or refinance your home!
Think not? Think again!
Suddenly, You Can't Sell Your Home!
Imagine you are selling your home for $240,000, which will easily pay off your $200,000 mortgage and give you some money for a downpayment on another one. Then you get an offer at list price! Great!
Then the title company reveals a judgment lien by NCT for $45,000! Now you don't have enough money at closing to pay off the mortgage company, the realtor, the closing costs, and the student loan! If NCT doesn't agree to take less, the deal could fall through!
Your Refinance Could Fall Through!
This could also be a problem for a refinance! Mortgage companies like to be first in line to get paid when it comes to liens against your home. So once the current mortgage gets paid off by the new mortgage loan, NCT's judgment lien would move up to the front of the line! If they don't agree to take a back seat to the new mortgage lender (called lien subordination), this could prevent you from refinancing!
The worst part of this is: It's preventable!
Yes, that's right; you could make that lien go away and send NCT packing!
How Can I Prevent This From Happening?
Want to discover how you can do that? Then check out this article on why NCT can't collect in NJ or enforce NJ judgments!
Do you live in New Jersey, own your home, and have a judgment against you by National Collegiate Trust? Then call me right away at 856-432-4113 to have me help you get rid of the judgment before NCT jams up your sale or refinance!