Mortgage Loans

[ESA2012]

As of now my eq fico is 622 ex is reporting 590 on their site and tran660 on their site. My experian is reporting 3 paid collections
My huge deal breaker is a car repo joint account for 18000 that was charged off June 2009 it was originally americredit and now it's gm financial. I have a poor credit history but since 2010 never late on my revolving debts. Car payments and cc i have had over 2 years.I have 2 cc I utilize and pay off or down every month. All my collections are paid except repo. I would like to get approved for FHA my income is 45000 salary steady employment. I believe I qualify DTI I am only looking for a home around 100,000 . I don't know how else to improve my scores. I am sending in GW letters and I even lucked out for a PFD on one account. How much will this repo hurt my chances for getting a loan. It will be close to 4 years old when I reapply for FHA

Thanks

[jess985]

I think you answered you're own question... that repo with such a large balance will probably be a deal breaker. Most enders will be worried about the chance of you being sued and a lien placed on the home.

I also have a repo with a charged off balance from 2007 and was told by more then one lender that I would need to get it taken care of.

[ESA2012]

Thanks. I honestly do not know how to tackle it. The person who the car was registered under (main owner) is not willing to help settle the debt. Bad judgement I've made. I asked for verification of the debt. And would settle for a lesser amount but would making payment plans/arrangements hold me back a whole more year before I qualify for FHA?

[jess985]

From my understanding, I think you have to have a formal payment arrangement and have made payments for six months in order for that to be considered. I may be wrong and someone with more knowledge or advice may chime in.

I was in the exact same situation as you. Scared and confused and just didn't know what to do. I called the OC since my account had not gone into collections and they were very much willing to work out a payment plan on a settlement for me. I originally had a 10,000 CO that they are letting me settle for 3,000, so you never know until you ask.

What I would be worried about with you're CO is are you still at risk for being sued over it? Do you know the SOL for you're state?

[ESA2012]

Yes I am still with in SOL . I live in ok which is 5 years. Next year will only be 4 years. I do question the accuracy of the debt and validity. The company has not tried to collect since they took the car. They sent me a notice after the car was sold. That was the extent of it. I don't know if Oklahoma is a right to cure because when they took the car they gave no warning. I'm waiting for them to get back with me. They still report every month and the amounts owed increase. 18000+ for a Kia optima? Really? Americredit. Yeah I will never go in on a subprime loan again. I guess when your 20 and dumb it seemed like a good idea. I wouldn't mind restablishing payment but to pay that off would take forever and is it worth it? Just a bummer because all I want is to buy a inexpensive house for my family. :/

[jess985]

Sorry to say, but I think buying a house may have to wait. If I were you, I would work on getting this issue resolved any way that you can. The last thing that you want is a judgment placed against you if you're looking to buy a home in the near future.