Posted on: 09th Feb, 2010 04:28 pm
mysecond mortgage was turned over to a collection agency. i am current with my primary lender and with the collection agency. in order to keep my house from going into foreclosure, i did a voluntary repossession with my car. it has been over a year ago and noone will let me have a car loan, they said because my second mortgage is with a collection agency. help me to understand this and please tell me what i need to do, to rectify this? i can't pay it off, i don't have that kind of money , but i am in desperate need of a car. am i eligible for refinance or can a lender by my second mortgage as well as the first mortgage?please help!!
Hi,
No lender is willing to give you a car loan because you have collections on your credit report. In order to qualify for the car loan, you will have to remove it from your credit report. You said you have been making payments to the collection agency. Did you not negotiate with them to have the collections removed from your credit report? Talk to the collection agency and make a deal with them that you'll be making payments to them provided they will remove the negative item from your credit. Once it is taken off your credit report, you can apply for a car loan.
No lender is willing to give you a car loan because you have collections on your credit report. In order to qualify for the car loan, you will have to remove it from your credit report. You said you have been making payments to the collection agency. Did you not negotiate with them to have the collections removed from your credit report? Talk to the collection agency and make a deal with them that you'll be making payments to them provided they will remove the negative item from your credit. Once it is taken off your credit report, you can apply for a car loan.
any time you need credit, lenders are going to review your performance on other indebtedness so they can determine the likelihood that you'll pay the debt applied for. your track record is not good - a repo, a collection account - so lenders aren't going to be treating you like a good risk.
there are streetside car dealers who provide financing for people in a situation such as you describe. of course, you'll probably pay an interest rate of 25% or higher, and if you are late by a day, they'll probably pop your car in a second.
there are streetside car dealers who provide financing for people in a situation such as you describe. of course, you'll probably pay an interest rate of 25% or higher, and if you are late by a day, they'll probably pop your car in a second.
