Overwhelmed with CC Debt and Auto Loan

[Anonymous]

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@Kasuito39 wrote:
Since I did not reaffirm my home but have equity in it, I'm I eligible to take out a HELOC now or should I refinance to pull out my equity?My scores are in the mid 500. I'd like to use the funds to invest in a rental property. Thanks

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The only way you would be able to invest in a rental at this point would be via a "hard money" loan, in which you would put up at least 30% of the property value AND pay a pretty hefty interest rate. I would not advise that at all. Instead, concentrate on establishing your basic emergency fund ($1000 cash), your extended emergency fund (six months of current living expenses), and your long term emergency fund (2 years of basic expenses in liquid investments) while re-establishing your credit. Then start thinking about rental investments.

[Kasuito39]

Thanks Norman FH

[Anonymous]

Getting out of debt in BK only to get back into debt with investment properties is a good way to find yourself back against the wall.

Work on rebuilding your CREDIT, not your debt.  There is a huge difference between those two words.

Even with my FICO roller coasters I've owned rental properties since my late teens and only once used debt to acquire one property (hard money loan for 12 months, 30% LTV on a foreclosure in the same building I own another unit in).  Thankful I avoided debt to buy rental properties since they were never at risk of foreclosure once.

I know over 27 ex-landlords in my buildings who learned a lesson the hard way.

[Kasuito39]

Thanks for the advice ABCD2199                     

[Kasuito39]

Capital one approved me today for a Master Card $300 BK DC scheduled for 12/04/2017. Currently on rebuilding mode.

[Kasuito39]

Forgot to mention that I was approved for an auto loan thru Prestige Auto financial at 16%. I did not reaffirm my previous truck. Once i make 4 payments I'll refinance with Cap one or any lender who offers low rates. Chapter 7 scheduled for DC 12/04/17.

[Kasuito39]

As of 11/15/2017, approved so far for the following:
Cap One $300.00
Premier Bank $500.00
Credit One $300.00
Auto loan @16% for 66 months
BK 7 discharge scheduled for 12/04.
Fico08 Scores 11/15/17 TU 469, EX 545 & EQ 591
I'm going back to gardening for a while.
Very grateful for this forum, thanks everyone.

[Kasuito39]

12/11/2017 Officially received discharge docs from Attorney:
Approved so far for the following:
Cap One $300.00
Premier Bank $500.00
Credit One $300.00
Discover IT $200.00 (Secured AU)
Auto loan @16% for 66 months
Signed up for credit repair to assist with rebuilding.
Goal: 700 score in 18 months or less.

[Kasuito39]

12/18/17- Received official discharge docs in the mail. Now begins a new chapter of rebuilding.

[Kasuito39]

Closed credit repair subscription in December. Will reconsider after my 6 months from discharge date which will be around June to assist with rebuilding.

Any objections/Ideas on credit repair subscription after 6 months BK duscharge?