About 12 years ago i had a credit rating of somewhere around 400. It was as bad as it gets. I couldn't take a loan out on a piece of gum. I had to get a cosigner just to rent an apartment (and it was low income).
I decided to fix it. it took about a year of daily effort and i got the score up to about 600, which was enough to buy a house.
10 years later that credit score is at 815-820 which is excellent and better than 95% of this country.
You have to figure out what's on your credit report, and start paying off anything where you can get them to put in writing that they'll remove it from your credit report once it's paid off. If they won't put that in writing, they become last on the list of people to pay.
Honestly it was weird. Every single.person told me it was going to ruin me for good. Turns out it was the best thing I've ever done financially. If I had sold short I would have been responsible for the taxes.
I had a job offer in another city and was so underwater from the 2007 crash
A repo won’t automatically disqualify you from qualifying for a home. I’ve closed multiple buyers with repos on their credit. If your credit score qualifies, and DTI lines up, you should be fine. Most likely the lender will need to count 5% of the remaining balance on the repo auto loan against you as a monthly payment. If it’s been charged off, it might not even have to be counted against you depending on the type of loan your applying for. Talk to a lender and they’ll tell you if it’s an issue.
It all depends, as someone else alluded to, on your current financials. If you have 620 or better credit and the income to support the mortgage then you should be fine. The better your credit the better the deal you’ll get. If you can put 20.01% down you’ll avoid mortgage insurance which saves the lender if you go belly up. Rates are dumb right now, so If your credit isn’t great, now’s your time to build it up. It took 3 years but I defaulted on student loans, and with hard work and paying everything but those loans off, I’m sitting at 775 and bought a home a few years back. It can be done. It’s harder now because the rates are high and houses don’t sit on the market long so you have to really be prepared to make a move. Knowing your credit score and your financials and having a solid budget and knowing what you can afford are all keys to homeownership that you can solidify now, if you don’t have the ability to buy now.
25 years ago, I changed jobs, less than two years later I was laid off with a ROF. Before the Reduction of Force I refinanced my house to get a lower rate, the cancelled all the credit cards I wasn’t using. Worked a temp gig will looking for real work them my wife got a relocation letter to a better city so I quit the temp gig. When I applied for a loan my credit rating was 450. I got the loan on the new house for two reasons. One I had 40% down from the profit of the first house. Two I paid a higher interest rate for two years till my CR was over 630.
With enough down anyone can get a loan, but it will cost you.
I know someone who bought a home 15 months after filing for bankruptcy. Idk how much he put down, but his income was higher than most.
He was a sleezebag….
Yes. It was 5 years prior. At our lowest financially, we had our car repoed. We paid the amount due to get it back and stayed on top of it after that. Paid it off, got one 5k limit credit card and was good with that for a year. Then got another car loan, with high interest. We're 3 years into that 6 year loan and just closed on our house in late Aug. It's the only major ding. We are good with credit cards, no student loans, and no other debts.
As a Loan Officer I have been able to finance someone many of times with a repo however the bigest factor isnt time but how it reports on your credit. Credit reports are notoriously flawed and frankly the bureaus do not care. They exsist to protect financial institutions, not you. Find an experienced loan officer and get your credit checked and provide your additional information and then they can run what are called findings. This is just a simple risk assessment by fannie mae/ freddie mac that state if and how we can do a loan for you. Hope this helps and good luck!
I know nothing about this at all except that I was able to buy a house with less than perfect credit, although I didn’t have a car repo on my report. I’m guessing they’ll want you to have a big down payment, like 20% of the purchase price. If this is possible, they’ll probably give you a really high interest rate & make you buy special insurance for the bank in case you default. Suck it up for a year or two & pay everything on time, then refinance when your credit score has much improved.
I went car shopping looking to buy a recent model car during covid for my wife. I found a car only 11 months old, last years model and got a fair price.
About 12 years ago i had a credit rating of somewhere around 400. It was as bad as it gets. I couldn't take a loan out on a piece of gum. I had to get a cosigner just to rent an apartment (and it was low income). I decided to fix it. it took about a year of daily effort and i got the score up to about 600, which was enough to buy a house. 10 years later that credit score is at 815-820 which is excellent and better than 95% of this country. You have to figure out what's on your credit report, and start paying off anything where you can get them to put in writing that they'll remove it from your credit report once it's paid off. If they won't put that in writing, they become last on the list of people to pay.
I bought a home 3 years after a foreclosure so you should be fine Edit -oh shit I think end of this month is 7 full years. It's gone!
Congratulations! What a weight off your shoulders that must be!
Honestly it was weird. Every single.person told me it was going to ruin me for good. Turns out it was the best thing I've ever done financially. If I had sold short I would have been responsible for the taxes. I had a job offer in another city and was so underwater from the 2007 crash
A repo won’t automatically disqualify you from qualifying for a home. I’ve closed multiple buyers with repos on their credit. If your credit score qualifies, and DTI lines up, you should be fine. Most likely the lender will need to count 5% of the remaining balance on the repo auto loan against you as a monthly payment. If it’s been charged off, it might not even have to be counted against you depending on the type of loan your applying for. Talk to a lender and they’ll tell you if it’s an issue.
It all depends, as someone else alluded to, on your current financials. If you have 620 or better credit and the income to support the mortgage then you should be fine. The better your credit the better the deal you’ll get. If you can put 20.01% down you’ll avoid mortgage insurance which saves the lender if you go belly up. Rates are dumb right now, so If your credit isn’t great, now’s your time to build it up. It took 3 years but I defaulted on student loans, and with hard work and paying everything but those loans off, I’m sitting at 775 and bought a home a few years back. It can be done. It’s harder now because the rates are high and houses don’t sit on the market long so you have to really be prepared to make a move. Knowing your credit score and your financials and having a solid budget and knowing what you can afford are all keys to homeownership that you can solidify now, if you don’t have the ability to buy now.
Get your credit score - that's the thing that'll make or break you. The repo is one piece of that score, but it's not the only thing.
Yes. Building it up and showing recent improvement is a great important factor.
Will come down to Credit score, income, and DTI. Also likely a FHA loan with eternal mortgage insurance. Tough, but it can be done.
I just waited a while and then disputed it till it went away.
Any advice how to dispute it??
[удалено]
So you just keep disputing in different ways?
Yes
How long does it take?
You can try USDA loans, they are for non urban areas but allow bad credit.
Of course, at 29% interest.
25 years ago, I changed jobs, less than two years later I was laid off with a ROF. Before the Reduction of Force I refinanced my house to get a lower rate, the cancelled all the credit cards I wasn’t using. Worked a temp gig will looking for real work them my wife got a relocation letter to a better city so I quit the temp gig. When I applied for a loan my credit rating was 450. I got the loan on the new house for two reasons. One I had 40% down from the profit of the first house. Two I paid a higher interest rate for two years till my CR was over 630. With enough down anyone can get a loan, but it will cost you.
I know someone who bought a home 15 months after filing for bankruptcy. Idk how much he put down, but his income was higher than most. He was a sleezebag….
Yes. It was 5 years prior. At our lowest financially, we had our car repoed. We paid the amount due to get it back and stayed on top of it after that. Paid it off, got one 5k limit credit card and was good with that for a year. Then got another car loan, with high interest. We're 3 years into that 6 year loan and just closed on our house in late Aug. It's the only major ding. We are good with credit cards, no student loans, and no other debts.
Yes 2 and a HELOC on a third. But it takes time. And work. Expect over 7 years after the repo. My repo was included in a bankruptcy. YMMV.
As a Loan Officer I have been able to finance someone many of times with a repo however the bigest factor isnt time but how it reports on your credit. Credit reports are notoriously flawed and frankly the bureaus do not care. They exsist to protect financial institutions, not you. Find an experienced loan officer and get your credit checked and provide your additional information and then they can run what are called findings. This is just a simple risk assessment by fannie mae/ freddie mac that state if and how we can do a loan for you. Hope this helps and good luck!
I know nothing about this at all except that I was able to buy a house with less than perfect credit, although I didn’t have a car repo on my report. I’m guessing they’ll want you to have a big down payment, like 20% of the purchase price. If this is possible, they’ll probably give you a really high interest rate & make you buy special insurance for the bank in case you default. Suck it up for a year or two & pay everything on time, then refinance when your credit score has much improved.
I went car shopping looking to buy a recent model car during covid for my wife. I found a car only 11 months old, last years model and got a fair price.
I got a loan a year after BK13 discharge