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TCrown 
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 Topic: CIBC Student Loan & Mortgage Approval
Posted: 11/November/2011 at 1:40am |
Hey all,
Hope someone can help cause I'm in a desperate situation. My wife & I purchased a home and have received mortgage approvals from a few lenders, our closing date to move in end of January 2012. We both have good jobs, my credit score 620 and my wifes is 750 and we qualify for the mortgage no problem.
The ONLY PROBLEM is one of the conditions on my mortgage approval to go through that the lender needs to see that m CIBC student loan on my credit report is cleared up.
This CIBC loan was opened up in 1999 and "date of last activity" 01/2008. Shows balance of $10,000. I contacted the CIBC student loan centre and they advised me that this file is a collection account and has been closed off since 2008. They said its been in the hands of the famous "CBV Collections". I called the provincial loan office and they advised me I have no outstanding provincial loans and I called the CRA (Canada Revenue Agency) who advised the same thing.
So my understanding that this CIBC student loan is the "bank risk" portion only.
*Question #1* - does that mean the loan is stats barred or hs been written off by CIBC????
*Question #2* - my broker contacted CBV and rudely we were told that they are "STILL" collecting on behalf of CIBC and that the balance somehow is now $14,500. They also said they will not settle for less than 80 cents on the dollar. Is CBV lying about this acount in relation to being connected to CIBC??? We also told CBV that we spoke to reps at the CIBC loan centre and CBV had the nerve of saying we were lying and wanted to know the reps name. they also said that CBV systems are tied in with CIBC so if we did call they would have seen notes/documentation. Sounds like a bunch of crock to me......what do u think?
*Question #3* - how or what can I do? my wife and I already put down $15,000 on the house and have less than 90 days to satisfy he lender requirement otherwise we lose everything.
Please please help!!!!!!
SKR
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SolveStudentDebt
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Posted: 11/November/2011 at 4:55am |
 TCrown wrote:
*Question #1* - does that mean the loan is stats barred or hs been written off by CIBC???? |
From what you have described the student loan is not statute barred.
TCrown wrote:
*Question #2* - my broker contacted CBV and rudely we were told that they are "STILL" collecting on behalf of CIBC and that the balance somehow is now $14,500. They also said they will not settle for less than 80 cents on the dollar. Is CBV lying about this acount in relation to being connected to CIBC??? We also told CBV that we spoke to reps at the CIBC loan centre and CBV had the nerve of saying we were lying and wanted to know the reps name. they also said that CBV systems are tied in with CIBC so if we did call they would have seen notes/documentation. Sounds like a bunch of crock to me......what do u think? |
Collection agencies only have blanket permission to settle on 85% (or as low as 80%) on those loans. However, if you've applied for and have been approved for a mortgage, and CIBC sees this, they likely won't agree on anything.
Having your mortgage broker contact them was a very bad idea. Brokers are commission hungry just like collectors, and are equally as “pushy” to get the results they seek. That is the reality of commission only work. I have seen so many cases of brokers creating so many more problems in this regard.
Collection agencies are connected to CIBC systems through a technology called “collection highway”.
TCrown wrote:
*Question #3* - how or what can I do? my wife and I already put down $15,000 on the house and have less than 90 days to satisfy he lender requirement otherwise we lose everything. |
If the bank is telling you that the CIBC loan has to be paid then that is their condition.
If you want to approach CIBC to settle the debt for less then you will have to demonstrate that you are unable to pay the debt due to hardship and inability to pay the debt. If CBV and CIBC see that you only want to settle or pay because of the inconvenience and that your mortgage depends on it then that is going to be a difficult task I am afraid.
Best – Johnny
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 11/November/2011 at 7:31am |
So basically I'm screwed over is what ur saying??. But how could a "risk loan" be active still if I've no contact since 2008 and btw they also faxed me a 5 page list of payments made since 99' to 2008 with balance remaining of $10,000 and then on last page it says new balance of $14,000 without any explanation.
My mortgage is with a CIBC company (First-Line) and how come when I called the CIBC loan centre they told me it was closed since end of 2007 which was 6 years after it went into default.
Also why would this risk loan not be stats barred?? im confused as to what makes it one
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SolveStudentDebt
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Posted: 11/November/2011 at 11:35am |
TCrown wrote:
So basically I'm screwed over is what ur saying??. But how could a "risk loan" be active still if I've no contact since 2008 and with balance remaining of $10,000 and then on last page it says new balance of $14,000 without any explanation.
My mortgage is with a CIBC company (First-Line) and how come when I called the CIBC loan centre they told me it was closed since end of 2007 which was 6 years after it went into default.
Also why would this risk loan not be stats barred?? im confused as to what makes it one |
TCrown wrote:
btw they also faxed me a 5 page list of payments made since 99' to 2008 |
Making a payment is acknowledging the debt, which resets that clock. Every acknolwedgement made resets it.
TCrown wrote:
balance remaining of $10,000 and then on last page it says new balance of $14,000 without any explanation |
The only explanations could be interest in arrears or accounting error.
TCrown wrote:
My mortgage is with a CIBC company |
If it is a CIBC company then they have some trade access to CIBC customer account information and records then. If you have a CIBC student loan that is outstanding and in recovery they are going to see that.
Limitations are not going to matter to CIBC.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 11/November/2011 at 12:34pm |
I made a payment or sent them anything in writing. Also ur response to part of the stats barred of my post did not show up. So is there anything I can do? CBV told me they had the account since 2003 and CIBC student loan centre advised me loan was closed in 2008. is it possible CBV just bought it out fully and is trying to collect as much as possible for themselves?
The CIBC rep we dealt with for mortgage could not find any info on loan details other than it being on my credit report.
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TCrown
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Posted: 11/November/2011 at 12:39pm |
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Also does verifying my info as they keep asking me to do (which I haven't done) , AND/OR making an offer for settlement or discussing the account make it an acknowledgement of debt????
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SolveStudentDebt
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Posted: 11/November/2011 at 12:43pm |
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Did you or did you not make a payment in 2008? In one post you indicated that you did.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 11/November/2011 at 1:09pm |
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May 2007 was last payment I've ever made.
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TCrown
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Posted: 11/November/2011 at 1:24pm |
Opening balance in 1999 was $9995.00, then in 2000 went up to $10,400 and has stayed there ever since. Also says total payments to date is $5376.00.
Then says balance to date is $10,400 and new balance with accrued interest of $3595.00 is what now adds up to $14,000.
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SolveStudentDebt
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Posted: 11/November/2011 at 1:42pm |
Limitations don't matter though as I pointed out to you above. CIBC and First know it is there. From what you described they want it taken out as a condition to your mortage deal. If the motae provider made it a condition then you have to honor that, unless you can find a away to negotiate somethin else.
Perhaps refinance and take out a loan to pay out the old collection account.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 11/November/2011 at 1:49pm |
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Ok thanks for ur help. Much appreciated!! So to confirm if I discuss settlements with them then that is NOT considered an acknowledge of debt right??? i have about $6000 cash I can settle with but I dunno if they'll go for that.
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Posted: 12/November/2011 at 3:17am |
Making a payment, sending something to them in writing (whether or not it contains a promise to pay), going bankrupt, getting sued or having a stateemnt of claim filed before the expiry of the prescribed limitation period is an admission, is considered an admission of liability.
They are likely going to want to see your total household income, proof of expenses, and a written illustration from you that outlines your hardship that warrants settling for less.
Best,
Johnny
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 29/November/2011 at 4:36am |
I
Hey Johnny, Just an update and a question. After numerous phone calls to the CIBC Student Loan Centre, and being referred to CBV Collection. I called CBV and spoke with a supervisor named Mary, right off the bat she offered to settle for 80% of the balance & I agreed. She said she would get the settlement letter drawn up and sent to me within 24 hours. Its now been 24 hours and Mary called me back stating......
" As pr CBV & CIBC directives they need to verify my income via paystub, financial questionnaire and hardship letter"
I told her NO. Then she said hold on let me confirm, then put me on hold for 30 seconds and came back and said no hardship letter rquired but they still need the other info.
Is this claim warranted or is this some new tactic of theirs to try to avoid a settlement and go for full amount. I did not ask for the settlement they offered it and I took it.
Mary now says she will escalate this with someone from CIBC to see what they say supposedly.
Does any of this make sense?
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Posted: 29/November/2011 at 12:46pm |
I have heard of this requirement from the agemcy, yes. What is strange is that others are not required to. Other collectors with other agencies issue the conditions, take your money, scratch their commission earnings from the money you sent them on a big white board under their name, and them cut you loose.
Something seems kinda fishy here. If it is an older loan then I would be very suspicious. You did say that the debt originated long ago.
Here is something to think about:
1) If there is a limitation issue then collectors are required to push for activations, or what we call "acknowledgements". This cancels out any potential limitation issues, and allows the bank to pursue you legally once again.
2) Collection agencies are paid upwards to 40% on old accounts. The incentive is there for the collectors to try to collect 80% rather than lower amounts because of the higher commission rate attached to these older accounts.
Do you know what the date of default was on this loan? How long has it been with collection agencies? when was the last time you actually made a payment on it, or sent them anything in writing?
I can't physically see what you are dealing with because I am not involved.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 29/November/2011 at 6:16pm |
Loan was taken out in 1999. Balance as $9995. It went into default late 2001-early 2002. CBV has had the account since then. my date of activity August 2008.
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SolveStudentDebt
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Posted: 30/November/2011 at 11:08am |
What was the activity though?
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 30/November/2011 at 1:57pm |
It was a payment.
Also this lady from CBV called me again and NOW says no documentation required for 80% settlement. She says she will get settlement letter to me once I pay $2000 at western union. I told her NOPE. unless I get something in writing first.
The lady calls me this morning saying everything ready to go, then all of a sudden says she made a big mistake the balance is now 14,000. and if I want the same $8300 settlement I would have to send in all documents since it would make under 80%. i basically told her off. their story always changes and its becoming frustrating. I told CIBC themselves confirmed balance was $10,000 and she says she care she controls the account and its now $14,000
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TCrown
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Posted: 30/November/2011 at 2:03pm |
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Are u able to help me get this resolved?
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SolveStudentDebt
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Posted: 01/December/2011 at 4:24am |
It was month end yesterday so that is the collector's reason for the desperate attempt to get you wire over $2000 via WU Quick Collect. NEVER send any money pertainiong to a settlement agreement without first receiving a written approval that it "will" be accepted once paid. Conditional releases are paramount to your safety in this regard.
Don't "tell them off" like you are describing. If CIBC perceives that you are being a bully they will treat you like one and not give you the time of day. You are damaging your chances. Once you painted red by the bank and the collection ageny that damage is irreconcilable.
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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting. solvestudentdebt.com
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TCrown
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Posted: 01/December/2011 at 4:29am |
Well I did not tell her off, kindly expressed my dissatisfaction without swearing and told her have a good day and hung up.
I did call CIBC national student this morning. spoke with one rep then she said to contact their Customer Response Unit with regards to this problem. So that is what is up next for me.
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CIBC Student Loan & Mortgage Approval