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Potential Mortgage with unpaid repo on credit

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Regular Contributor

Potential Mortgage with unpaid repo on credit

Well here's the quick and skinny of it..applied for a mortgage to see if I could get a approved (live in the house I wanna buy) scores I'm told are good however I have an unpaid repo for 8.5k from 2006 thats suppose to fall off spring of next year and I'm concerned that's gonna prevent me from getting a loan. I have the means to make payments on it however its from an Ex-fiance (this is one of many reasons) and I don't wanna pay off her debt..and yes I know that since I signed its also mine but I'm just saying...scores are in the sig any constructive advise would be greatly appreciated.

CH 7 BK discharged 05/15 goal scores 680 across the board
Current Score: TU 657 EQ 676 EX 657 FICO pull 03/20/17

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Message 1 of 9
8 REPLIES 8
Moderator Emerita

Re: Potential Mortgage with unpaid repo on credit


@SupraTurbo2jz wrote:

Well here's the quick and skinny of it..applied for a mortgage to see if I could get a approved (live in the house I wanna buy) scores I'm told are good however I have an unpaid repo for 8.5k from 2006 thats suppose to fall off spring of next year and I'm concerned that's gonna prevent me from getting a loan. I have the means to make payments on it however its from an Ex-fiance (this is one of many reasons) and I don't wanna pay off her debt..and yes I know that since I signed its also mine but I'm just saying...scores are in the sig any constructive advise would be greatly appreciated.



Are you sure that there is no judgment? I am only asking because sometimes you can have a judgment with no notice (also called 'sewer service'). Check the public records in your area to see. Once you apply for a mortgage, these types of old collections come out of the woodwork. If you don't have a judgment, make sure you don't have any mortgage apps inside the SOL. A mortgage app is an automatic trigger for old debt and their collections.  If you do have a judgment that you didn't know about, try to get it vacated due to not being served.

 

With a judgment there is no question it would have to be paid prior to getting a mortgage loan.

Even without a judgment you will need to at a minimum provide a letter of explanation for the default if it is still showing on your credit report.

Message 2 of 9
Regular Contributor

Re: Potential Mortgage with unpaid repo on credit

Thank you for your response on this matter, I don't have any judgements..trust me I've been staying on top of that and had one vacated for midland funding. I've also opted out on promos on all 3 bureaus so that way I didn't have that happen (old sewer debt). this is simply showing as a charge off.

CH 7 BK discharged 05/15 goal scores 680 across the board
Current Score: TU 657 EQ 676 EX 657 FICO pull 03/20/17

 photo cabelas 3700.jpg
 photo Disney siggy 5000.png photo SWP Premier 2500.png photo virgin america 2300.jpg photo lexus 2500.png photo toyota 2500.png photo kays1500.jpg photo hsn4000.png photo GoodSam 1000.png photo buckle 900.jpg photo af 250.png photo valero.jpg photo fingerhut.jpg
Message 3 of 9
Contributor

Re: Potential Mortgage with unpaid repo on credit

Did you ever find out if you would need to pay the CO?

 

I'm in the same situation except my repo occurred in 2007 and although I've read post of some ppl finding lenders willing to approve them without the CO being paid

I haven't seemed to be lucky enough to find one willing to do that.

Message 4 of 9
Senior Contributor

Re: Potential Mortgage with unpaid repo on credit

I've read posts here where small amounts threw monkey wrenches into everything. Based upon that, my gut says you'll have to wait it out (hoping to not get sued) or pay the price for co-signing.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


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Message 5 of 9
Regular Contributor

Re: Potential Mortgage with unpaid repo on credit

Well..with much regret I've found out from 2 seperate brokers that this is not going to be a possibility due to the amount and that the statute of limitation in Ohio is 15 years...my choices are to setup a payment agreement with them which in turn would start the clock all over or wait till it falls off and hope and pray that no action is taken till after that...either way I'll be waiting until next year before I can make a purchase...sorry for the grim news..much like you said drkaje..paying the price...sucks that my family now has to suffer for it..but such is life. Goodluck guys/girls and if anyone finds a lender willing hit me up.

CH 7 BK discharged 05/15 goal scores 680 across the board
Current Score: TU 657 EQ 676 EX 657 FICO pull 03/20/17

 photo cabelas 3700.jpg
 photo Disney siggy 5000.png photo SWP Premier 2500.png photo virgin america 2300.jpg photo lexus 2500.png photo toyota 2500.png photo kays1500.jpg photo hsn4000.png photo GoodSam 1000.png photo buckle 900.jpg photo af 250.png photo valero.jpg photo fingerhut.jpg
Message 6 of 9
Senior Contributor

Re: Potential Mortgage with unpaid repo on credit

15 years is a long time. They might accept less and PFD but starting the ball rolling could make things worse unless you're in a position to negotiate.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Message 7 of 9
Contributor

Re: Potential Mortgage with unpaid repo on credit

Sorry to hear that.

I'm in Louisiana and repo laws are different here so I'm still crossing my fingers and hoping for the best but a payment plan may be my only option too.

Lesson learned, I will never co-sign again!

Message 8 of 9
Valued Contributor

Re: Potential Mortgage with unpaid repo on credit

If you buy a house, they will sue much faster since they have a better chance of collecting. They will get a judgement for the $8,500, which is now far more with the accumulated interest. They will have 8 more years left to sue and you will owe far more later.

 

You need to deal with this sooner and go after your ex.

Message 9 of 9
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