$30K Pool Loan Approved 2.5 Yrs Post Chapter 7!

[Divaofsongs]

I don't really know where to post this......I could not find a personal loan section and I think it would be encouraging to anyone who is wondering about the possibilities of unsecured loans after chapter 7 bk so I will post it here first. In Aug 2013, our chapter 7 bk was discharged. Since then, we have worked hard to rebuild and both my husband and my credit scores are now in the high 600's to low 700's, depending on the bureau. We decided to see if we could get approved for a swimming pool loan and applied online with one of the largest pool loan companies around. To our surprise, we were approved for an unsecured loan of $30k for a term of 10 years! We just signed the final docs on Tuesday, and they released 30% of the funds to the pool builder today so they can start the excavation! We are so excited!

We feel this is amazing since it has just been 2 1/2 years since our bk was discharged. We are just elated. Our interest rate is 17.99% and we understand that is really high, but we are planning to bring the effective interest rate way down and pay the loan off within 18 months by sending $1500 monthly payments, until it is paid in full.

I never dreamed we would be approved so I am so happy we applied. I thought I would share this, in case someone might be in need of a home improvement loan. We have zero equity in our home, in fact, the mortgage was discharged in our bk but we are about broke even, so we are continuing to pay the mortgage and will eventually pay it off, since we were blessed enough to get the HAMP modification a few years ago and our interest is only 2% fixed for the life of the loan. We had a 2nd mtg., but after the house was discharged in the bk, we negotiated a $1,000 settlement with Ocwen and they completely squashed the $25k, 2nd mortgage and released the lein on the title, so now we have only a 1st mortgage and we owe just about what the house is worth, we night have $5k in equity but that is about it.

If anyone wants to know the name of the loan company we used, please message me. I am not sure if we can post it on the forums or I would just post it here. They do all types of loans, home improvement, etc. and work with all types of credit.  

[Anonymous]

Please know I mean this in the sincerest way possible, but are you sure this is a good idea?

Admittedly, you have just about 0 equity in your home. How much value is a 30k pool going to bring to your home? Will its value be at least around 60k, because that's how much your loan costs. I completely understand your intentions to pay it off early, but what if something happens. A 30k loan at 17.99% for 10 years carries a payment of 540/month. Over 120 months that's 64,800! For a pool! Just be sure you're going into this with your eyes wide open. 

[Divaofsongs]

I completely agree with you, under normal circumstances, I would never pay almost 18% on a $24K loan.......we were approved for $30k but only ended up using $24K of it, so our payment is a little north of $400 a month.

Unfortunately, I am having the pool installed for medical reasons as I have a rare and progressive form of MS and I am now in a wheelchair. Over the last couple of years I have lost my ability to walk and the muscle memory in my legs has suffered tremendously. The only way I am able to use my legs now is by becoming weightless in the water and doing physical therapy. My neurologist said that with time and effort, I may be able to walk again with a walker and not be confined to a wheelchair. I had 2 major surgeries last fall (Aug and Nov) to help with my mobility but they were pointless if I cannot get into a body of water to do the physical therapy. The closest gym to my house is over 40 minutes away and even if I could go there every day, my husband would not be able to take me every day because of his work schedule, and I can't drive, so it is really one of my only options. 

I can write off the pool as medical expenses since my doctor has written a prescription for it and my long-term care case worker said it would be a tax write off as well. There are 2 organizations that will help with reimbursement of a few thousamd dollars each, once the pool is complete. One is my local MS Society chapter. They also helped me with a wheelchair carrier on my truck and a ramp to get in and out of my house. So, I am hoping to get some help with the loan. I just didn't want to really mention it because it is a personal/medical reason, but I can see why people might wonder why I am getting myself into a huge loan so soon after bk. I wish it were for a different reason but I can understand your concern. Hopefully nothing will go wrong and the loan will be paid off quickly.