I originally purchased a vehicle in an effort to get some revolving credit on my account, after paying on it for over a year I noticed it only reported to one credit agency and it was not helping my credit in the way that I had intended it to. Knowing that I wanted to buy a home and need to increase my score, I decided to trade in the vehicle in December and get a new loan on a new car that would report to all three bureaus. During this deal I did a trade in on my old vehicle and rolled over my negative equity into my new loan. The problem is that that dealership went out of business, the owner skipped country to Peru and never paid off my loan on my traded in vehicle. I have done everything I need to do the problem has been reported to the Dealer Board through my State, they have opened a bond to have the dealers insurance company pay off the loan however it is a sit and wait situation. I was advised that it would be 4 months to a year before this would be resolved. I had my credit score drop from a 617, 607 and a 621 to a 509, 510, and a 557 in just two months time. I was told by a lender that even though they could underwrite this and overlook this issue, that no bank will touch it without a score of 580. Does anyone out there have any suggestions or any experience with this? I am more than frustrated as I have put in the last two years to get my score to a measly 617 paying off all of my old debt and getting incorrect items removed, countless letters sent and time put into doing this. And than something beyond my control is bring down my score by almost 100 points!
