New Contributor
Posts: 73
Registered: ‎02-01-2009
Re: How to cash in with Cash for Clunkers with Bad Credit?

I do not believe anyone is "judging" anything except the situation.  From a lender's perspective, if the borrower is not keeping up with current obligations (present situation that can be resolved IAW OP) it is not likely that they would lend under most circumstances.  Although we know the income, we do not know the amount of the "couple of mortgages".  As the OP stated, they have been "somewhat stretched  the past couple years" which leads me to believe that the monthly obligations are close to the monthly income.   Sound financial advice is to forgo the additional monthly expenditure, even if it means missing out on the CFC program.  


These decisions on what to do next are entirely up to the OP and spouse.  If you do decide to pursue utilizing the CFC program, get all of your applications in during the same 14 day period and they will only count as one inquiry.   You can go in and talk to a loan officer at your credit union and they can give you a general indication without doing an inquiry of whether or not you could be financed through them.  


Just on a side note about marketing..... the way things are presented are designed to get you into a state of mind that you must act quickly or you will lose out.   If I make 50K a year and a 10 million dollar house is selling for 9 million, I can look at it as:  

A.  I am saving a million dollars!

B.  I can't afford a 9 million dollar house.


Of course that is a drastic example; only meant to help put things into perspective.


OP, best of luck in accomplishing whatever you decide.