auto approval with loan mod

Anonymous · ‎03-18-2012

Hellllo my car is living on its last days and I am in the middle of having my loan modified...my scores are high 500s low 600s...is there anyway that a bank or CU will approve me while my loan is being modified? I have been going back and forth with boa for almost a year for my mortgage and my car isnt gonna last much longer.....i might be able to drive it until summer....fyi I MUST have a reliable car because I drive my car for a living and put plenty of miles on it. Thanks

JM-AM · ‎03-18-2012

@Anonymous wrote:
Hellllo my car is living on its last days and I am in the middle of having my loan modified...my scores are high 500s low 600s...is there anyway that a bank or CU will approve me while my loan is being modified? I have been going back and forth with boa for almost a year for my mortgage and my car isnt gonna last much longer.....i might be able to drive it until summer....fyi I MUST have a reliable car because I drive my car for a living and put plenty of miles on it. Thanks

IMO the best thing for you to do is find a good mechanic. The expense to buy another car may not be an issue in your opinion, but your credit scores speak a different tune to the banks.

You be surprised how many more miles you may be able to get with a good mechanic. In the mean time you could work on repairing your credit problems and as you start repairing and improving your scores you would be able to opt for purchasing a new car in the future.

In the mean time I would either fix my present car or find a used car I could pay cash for. You do have options to try and finance a car (probably used) but the rates would probably be steep and not worth it in my opinion.

Good Luck
May all your dreams and wishes become a reality!

Anonymous · ‎03-18-2012

thank you but the problem is a blown head gasket on a 15 yr old car........even if i did want to put 4k in a car (its only worth 1k at best) i cant be without a car for the 3-4 weeks it would take to fix it...i would def loose my job. I am probably at 50% utilization on my cc but I will pay those down this month....I would rather have a higher interest rate then loose my job it my car leaves me on the side of the road stranded and then i would really have a problem....I just want to know if its possible for me to get an auto loan while my mortgage is at the underwriters to be modified.

pizzadude · ‎03-18-2012

In most cases it will cause major issues with underwriters if you seek new credit. I would assume that a loan mod would be similar to traditional mortgage financing in this respect.

If you really have no alternatives then before you do anything else call your loan officer and get him/her to talk with underwriting about it.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

Anonymous · ‎03-18-2012

I have a mortgage with boa and trying to do a mod and still currently waiting. I purchased a car in nov/dec 2011. The dealership asked about my mortgage only because boa has not reported to the credit agencies in months but they still was gonna finance me, I didn't like the terms so I went with my credit union and got financed with 9.75% rate with score back then of 597 auto score and fico score from this site transunion 610 and equifax 603. So it is possible but you may have to explain mortgage if boa is not reporting.

StartingOver10 · ‎03-18-2012

You are treading in dangerous waters here....

1) In order to obtain a loan mod you have to show that you are currently experiencing a hardship necessitating the reduction of your payment on a permanent basis, yet you make enough to just make the new payment

2) In order to buy and finance a vehicle, you need to show that you make all of your payments on time and have plenty of money left over to adequately add another loan to your current credit profile. Your current scores indicate you have issues with making your payments on time.

Those two items are mutually exclusive - unless you don't tell the truth on one of the applications. That is not a road you want to travel.

I agree with the above posters that if you can't fix your vehicle - then get one for cash in the $2K to $4K range. Even if its a beater you drive to death over the next year or two. I did that after my BK and I was better for it. Once you are on your feet with your permanent loan mod and your credit has recovered, then get your new/used vehicle. You can get through this time. The key is getting through it without creating more problems on the other end....

Anonymous · ‎03-19-2012

thanks for your advice, I get a grant from my job to use my personal car and in order for me to get a car worth $2-4K it will haave to pass their extensive qualifications before I can drive it for work. My parents will pay my payments for 1.5 years until I complete grad school so the paying iisnt a problem. Plus I get a year end bonus of 20k for going back to school so that isnt an issue for me, I could essentially pay down most of the balance before the year is out. The issue is the initial financing for me

Anonymous · ‎03-22-2012

@Anonymous wrote:
thanks for your advice, I get a grant from my job to use my personal car and in order for me to get a car worth $2-4K it will haave to pass their extensive qualifications before I can drive it for work. My parents will pay my payments for 1.5 years until I complete grad school so the paying iisnt a problem. Plus I get a year end bonus of 20k for going back to school so that isnt an issue for me, I could essentially pay down most of the balance before the year is out. The issue is the initial financing for me

I think making the payments isn't the issue. I think the issue is how your mortage company will see this. They will want you to pay them that $20k bonus, instead of towards a car. If you are applying for a mortage mod, it is probably for the stated purpose of financial hardship. If they see that you are out getting new car financing, that certainly could raise some red flags as far as whether or not you have the financial hardship to mod your mortgage. I think you need to decide which is more important, the mortgage mod or the car and go from there.

StartingOver10 · ‎03-23-2012

@Anonymous wrote:
@Anonymous wrote:
thanks for your advice, I get a grant from my job to use my personal car and in order for me to get a car worth $2-4K it will haave to pass their extensive qualifications before I can drive it for work. My parents will pay my payments for 1.5 years until I complete grad school so the paying iisnt a problem. Plus I get a year end bonus of 20k for going back to school so that isnt an issue for me, I could essentially pay down most of the balance before the year is out. The issue is the initial financing for me
I think making the payments isn't the issue. I think the issue is how your mortage company will see this. They will want you to pay them that $20k bonus, instead of towards a car. If you are applying for a mortage mod, it is probably for the stated purpose of financial hardship. If they see that you are out getting new car financing, that certainly could raise some red flags as far as whether or not you have the financial hardship to mod your mortgage. I think you need to decide which is more important, the mortgage mod or the car and go from there.

+1. Exactly. Well put.