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Financing Difficulties!!

New Member

Financing Difficulties!!

Anyone know how long till late payment history wont effect my ability to get an auto loan? I currently am underwater on my mortgage and walking away. Stopped paying it. Indluded it in my husbands bankruptcy filing. We are a community property state so we can file just under him and include the mortgage. Should be discharged in less than 10 days! Yeah! I wont show a bankruptcy on my credit and dont.


I have been trying to get an auto loan with difficulties. All i seem to be getting approved for are 24% rates with thousands down. Besides the mortgage, my history isnt too bad. Only have one open secured credit card which i opened in august to start rebuilding. My mortgage is still showing open, and past due. I do have some old closed collections as well. There havent been any late payments actually reported since May. The lenders though are telling me its my mortgage thats killing me.


I was told my score is 543 by dealer. I use USAA credit monitoring, which i know isnt completely inaccurate. My scores are 596, 585, and 596 on that.


I am hoping in six monthes, my score will have improved enough to get a better rate. I can then refinance down the road. Is six monthes enough time to get me over 600? I am thinking of getting another secured card to help rebuild as well.


Just wanting some input from those that have been there. Smiley Happy




Message 1 of 6
Valued Contributor

Re: Financing Difficulties!!

I think it will take longer then 6 months once it shows the home charged off included in BK..


My guess is your at min a year out from getting an ok rate on an auto loan..

Message 2 of 6
Established Member

Re: Financing Difficulties!!

I have a 619 score and the only late reporting loan is my mortgage.  However I just did a modification and it is now reporting current.  My wife's credit does not have the mortgage on it.  Her score is 679.  However I have the income history and long term job.  Our other "bad" is a few (four) high util on credit cards, one with $3k, one with $2500, and the other two are around $1500.  We are both self employed so she has income from that, however we are not sure how to show that income??


We have a recently paid in full auto loan, never late, and one that is open that has no lates.


I'm hoping once we pull the trigger on auto apps that we will be approved with a decent rate.  From what I have seen in these forums there have been people with scores in the 500's who are getting REALLY good rates on loans, like below 5%!  How is this happening?  If that is the case then I am really confident things will work for us.


Because you have a recent BK things will be difficult for awhile.  I was there about 9 years ago.  Had to wait about 6-9 months to get any type of loan.  You will get through it!

Message 3 of 6
New Member

Re: Financing Difficulties!!

Thanks for the responses.


I have seen some people as well on this board get financed with crappy scores. I dont get it. I have read though that the late mortgage is a big red flag.


Fortunately i DONT and WONT show an actual bankruptcy filing on my credit. It hasnt reported as late since may, but it still shows open and past due.  My husband is due to be discharged in about a week. Fingers crossed that after the mortgage is reporting closed, it will start improvin

Message 4 of 6

Re: Financing Difficulties!!

I am a little curious. You get to discharge the mortgage through bankruptcy even if you didn't file bankruptcy? Did you actually sign for the mortgage note or was it being reported on your credit report because of your marriage? I thought I understood the community property state info as it relates to bankruptcy, but I didn't realize that only one party had to file BK and both parties were released from the debt. In fact, I don't think you get a release if you each signed the mortgage note.  You actually might want to specifically discuss this with the BK attorney. Wait until your husband gets his discharge. After my discharge my score improved tremendously. Over 100 pts in a yr and after 2 yrs I was in the low 700's. I found it easier to recover after BK than after having late payments. If you never signed for the mortgage (never signed the note) than you should be ok. However, if you signed the mortgage note, you might still be responsible for it after your husbands discharge.  Check with your BK attorney.

Message 5 of 6
New Member

Re: Financing Difficulties!!

Yes its kinda confusing. I was the one who signed the mortgage. Not my husband. Any debts incured during the marriage can be included in the one spouses filing in a community property state.
Message 6 of 6