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New Member
dvakaduke
Posts: 2
Registered: ‎01-05-2013

Can I get a loan with a recent foreclosure?

Hey forum,

 

I have a very long history of excellent credit, including at least 7 paid off auto loans, many credit cards and student loans paid, etc. have always been near 800 scores. 18 months ago decided to walk from a mortgage that was $200k upside down. The foreclosure just happened Friday, though the mortgage is still reporting 180+ late as of today, with a 2nd mortgage showing as a charge off, though I just settled that debt this last week. 

 

I am thinking about buying a new car, not sure I can get a good loan though. I applied at my CU and was denied for a no down loan (not surprised) even though I have over $70k in cash accounts with them, can document much more in cash/retirement accounts, and have great income (over $200k last year). I could put down 30-50% between cash, rebates, and trade equity so I wonder if 1) I might get the CU to reconsider their decision at a lower LTV or 2) with a sizable down payment would I be able to get dealer or manufacturer financing in my situation Without getting crushed by the interest rate? 

 

Considering a Toyota Tacoma or Tundra, purchase between $30k-$45k, depending on the vehicle. 

 

Appreciate at feedback from you all. 

Valued Contributor
tooleman694
Posts: 2,296
Registered: ‎08-25-2011

Re: Can I get a loan with a recent foreclosure?

I think you can do it, but your gonna need to get the dealer to get you the loan and yeah you gonna need a huge down payment and the interest rate is gonna suck.

 

You would probably be better off paying cash so save money in the interest rate.

Community Leader
Senior Contributor
StartingOver10
Posts: 3,707
Registered: ‎03-06-2010

Re: Can I get a loan with a recent foreclosure?


tooleman694 wrote:

I think you can do it, but your gonna need to get the dealer to get you the loan and yeah you gonna need a huge down payment and the interest rate is gonna suck.

 

You would probably be better off paying cash so save money in the interest rate.


I have to agree with tooleman - right now you represent a high risk for long term loans due to the f/c and the best way to overcome that is with a substantial down payment.


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