Paid auto repossession & FHA loan

[AZHeather]

Back in 2013 my husband got transferred overseas and I could not take my car that I had just bought a year before.  I tried working with the bank regarding a voluntary surrender and paying the balance, etc., but they would not work with me at all.  I made my payments right up to the month I left and even sent them a letter and email once again explaining my situation and all of my attempts to work with them, as well as the location of the vehicle.  Less then 30 days later, they came and got it.  They then auctioned it for less than I owed.  Fast forward 6 months and my husband's contract was cancelled, so we came back to the U.S.  I bought a new car and worked out paying the balance off on my previous car.  All of my other credit has remained spotless.  Now I am looking at buying a home in 6 months to a year.  Because of the repo, my credit score is currently at 710 (give or take a few points depending on who you pull if from).  Will this whole situation with the car prevent me from getting approved for an FHA loan?  I even have proof from the bank that the car balance was paid.  I have no other collection items, judgments, or anything like that.  Thanks!

[ojefferyo]

As long as it shows paid then it should not be a problem, some underwriter may ask you to try to remove it from your report however it should not be grounds for a denial.

[Anonymous]

Heather said-

"Back in 2013 my husband got transferred overseas and I could not take my car that I had just bought a year before.  I tried working with the bank regarding a voluntary surrender and paying the balance, etc., but they would not work with me at all.  I made my payments right up to the month I left and even sent them a letter and email once again explaining my situation and all of my attempts to work with them, as well as the location of the vehicle."

Then she found out-

"Less then 30 days later, they came and got it."

Yeah, they didn't wanna hear none of the other stuff, just how they roll.

I'd say you're good, might have to write a letter on it though, and surprised your score is 710.  Nice comeback.

[StartingOver10]

Is that your mortgage score? Or some other score? Check your mortgage scores so you know what you need to do...FICO 08s are not mortgage scores. This report shows you all three mortgage scores (plus auto enhanced scores and FICO 08 scores).  It will give you an idea of where you need to be. The mortgage lenders use the lowest mid-score of the applicants (assuming both of you are applying). http://www.myfico.com/Products/FICO-Score-3-Report-View/

As to the repo - a VS is treated exactly the same as a repo. It is a repo - just a more civilized one. The fact that you paid it is very helpful. The fact that it is older than a year is also helpful. The explaination will be required by the u/w. Was the vehicle very upside down - is that why you didn't attempt to sell it?