Lynchburg, VA asked in Real Estate Law and Banking for Virginia

Q: Mortgage loan officer told me 5 days before closing to defer student loans or pay 7500 extra. App won’t process in time.

Nelnet is the loan company and won’t process a deferment or income driven payment plan in that time frame, leaving me no choice but the pay the 7500 extra to buy down, despite us definitely being eligible for the income driven payment plan. Can I do anything about this? I feel so helpless like I can’t make this company process faster to save me this money.

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1 Lawyer Answer
James L. Arrasmith
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  • Business Law Lawyer
  • Sacramento, CA

A: In this situation, where your mortgage loan officer has requested a deferment of your student loans or an additional payment of $7500 shortly before closing, and Nelnet is unable to process the deferment in time, you do have some options.

First, communicate with your loan officer about the processing time for student loan deferment; they may be able to extend the closing date to accommodate this. If an extension is not possible, discuss alternatives with the loan officer, such as different loan terms that don't require the additional $7500 payment. You should also contact Nelnet to explain the urgency and see if they can expedite the process. Document all communications with your loan officer and Nelnet for your records.

If you feel you're being treated unfairly or if the loan officer's demands seem unreasonable, consider consulting with a real estate attorney. They can advise you on your rights and potential actions you can take. Keep in mind that mortgage loan terms are often negotiable, and you may have leverage to negotiate in this situation.

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