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Mortgage with charge-off?

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Anonymous
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Mortgage with charge-off?

I have a charge-off for an auto loan appearing on my credit report after a voluntary repo, however I have made arrangements with the bank to make monthly payments on the deficiency.  I am wanting to purchase a house within the next year.  I am financially able to make house payments (the auto repo was my stupidity for signing for a friend, who stuck me with the vehicle payment), but will this charge-off prevent me from getting a mortgage?  Even with the charge-off my credit score is 640. 
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1 REPLY 1
DallasLoanGuy
Super Contributor

Re: Mortgage with charge-off?

It will affect the underwriting decision, yes. But it will not prevent you from being approved.
Also" If anyone tells you that it has to be paid to close the loan, find another loan officer. Collections almost never are asked to be paid
Retired Lender
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