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Can I get a loan with a recent foreclosure?

New Member

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. 

Message 1 of 3
2 REPLIES
Valued Contributor

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.

Message 2 of 3
Moderator

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.

Message 3 of 3