@CreditGuy03 wrote:Cliffs:
Short sale in process. Credit score dropping every second because of it . With score at 534,525,500 where can I get an auto loan? Roadloans, Cap 1 finance?
Correct me if I'm wrong, but when you sell short, don't you effectively lose all your available free assets at that time to cover the marker?
Downpayment is king, if you have 20+% it's a near guarunteed approval from either roadloans or dealership. C1 is wonky in their auto underwriting, I haven't been able to make heads or tails out of the people's experience here... seems to lack consistency.
Anyway, if you can't reach the downpayment, then you're kinda stuck. Renting wouldn't necessarily be a bad option short-term, or finding some random beater for 1-2K would be the other, or just sucking it up with whatever mass transit if you have it available. Carpool, other options... you're in a bad situation, you need to be considering compromise solutions for travel arrangements even if it costs you more time I think. No real easy answer on this one.
I had thought that short selling involved the bank accepting the terms as presumbly the sale price is less than the outstanding loan, and normally you would have to make up the difference; as a result, I sort of thought you were obligated to fork over your available free cash effectively.
I don't know on short sales whether it would be better to wait or not... I would sort of think that it would be much as your CU suggested, get that set in stone so you know what you have to work with for a vehicle. I know if I were a lender, and someone was trying to get me to accept a short sale, if I suddenly saw a new car tradeline, I'd probably be a little angry to say the least.
Thank you for the clarification though; typically I'd say you can get approval as long as you're not picky about the interest rate, but I don't know how any lender's underwriting is going to look at things with a short sale in progress. I would suggest asking UpNComing in the "I can help I run a dealership" thread, as he might've seen someone in your situation and might be able to provide some advice as to whether it's achievable to obtain financing.
@CreditGuy03 wrote:No short selling is just the bank accepting the sale of the house for less than its worth. The problem is it kills your credit in the process and most people think you are just missing payments intentionally.
My credit union said wait until the short sale is finished before applying but that could take a while. So that leads me to roadloans or something else. I do have 20% for a 15000 loan though.
It's best to wait until the short sale is finished.
One of the things you are doing in the short sale i attesting that you can't afford the property (in lay terms). Several of the forms you sign allow the short sale lender to pull your credit now, during the short sale process. They will see what loans you have and if you have been obtaining new credit/loans recently too. This could hurt your chances of an approval. Or if you get the approval, they may decide on less favorable terms for you (like have you bring $$ to closing or not give you a release for the deficiency). Some states don't allow a deficiency judgment on certain types of mortgages, but others do.
Don't complicate your short sale - they are complicated enough. Just wait for it to be done and then get your car. 