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Any hope with a prior foreclosure and repo?

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Contributor

Any hope with a prior foreclosure and repo?

Almost 3 years ago, my husband and I went through a foreclosure and reposession due to job loss. We have been told that come March we could apply again since it will be 3 years out from foreclosure. We are very concerned about the repo. There was a $10,000 balance on the vehicle, they state that they sold it for only $900. The credits reports show a balance of almost $12,000 on his EQ report and a balance of $8,238 on TU. They have not reported since 2016. We have tried to have the amount verified by the credit agencies and somehow both keep reporting accurate. I have sent a certified request for a settlement with no answer. It is now 2 months past the statute of limitations for our state. We have rebuilt our credit and are financially prepared to buy again but we fear the repo will be a huge issue and cause denial. What else could we possibly do? Has anyone actually qualified for a mortgage with a repo that shows a balance?
Message 1 of 5
4 REPLIES 4
Valued Contributor

Re: Any hope with a prior foreclosure and repo?

Hi Nchilders,

How does the account report?

Does it say it was charged off?

Since it hasn't reported since 2016, you need to stop poking that bear & leave it be.

The repo is not going to be an issue.

 

What type of mortgage did you have on the foreclosure? Was it FHA, VA or USDA?

If so, there will likely be a CAIVRS hit which could affect when you're eligible for a new mortgage.

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 2 of 5
Contributor

Re: Any hope with a prior foreclosure and repo?

It was a voluntary repo and it shows as a charge off. Our first loan was an FHA loan.
Message 3 of 5
Contributor

Re: Any hope with a prior foreclosure and repo?

It was a voluntary repo that is listed as a charge off. Our first loan was an FHA loan.
Message 4 of 5
Valued Contributor

Re: Any hope with a prior foreclosure and repo?


@nchilders wrote:
It was a voluntary repo that is listed as a charge off. Our first loan was an FHA loan.

Ok so since it's a charge off, you can either ignore it or you can try & settle it. The good news is it will not affect your ability to qualify for a new FHA mortgage. If the account is past the SOL in your state, I would leave it be.

The down side is you will not be eligible for a new FHA mortgage until you age out of CAIVRS which is 3 years from when HUD/FHA paid the claim. Generally a claim is paid within 6 months after the foreclosure.

You should get with a lender & have them pull a CAIVRS report on you so you can see when the claim was paid so you know when you'll be eligible.

 

If you have the ability to go VA then you only need to wait 2 years post foreclosure to be eligible. 

 

 

 

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
Message 5 of 5