Paid Repossession

[phumanr]

All,

How does a "paid repossession" affect an FHA Loan? Do you have to wait for a time period to be approved if you have this on your credit report?

Thanks,

Phumanr

[Booner72]

You have to have 12 months of clean credit. How long ago was the repo? If over 12 months, and you have no other derogs, then it will probably be okay - esp. since it's paid.

[phumanr]

Hello,
The repossession was December 2011. I then purchased a new car in December 2011 and have been current.

I settled the repossession this month, but the last date of activity is showing July, 2012. I am going to try to work with the orginal creditor to see if the status can be updated to "closed"..not sure if that will give me additional points or not.