Posted by RHnGA on October 07, 2001 at 24:54:41:
Thanks Bruce!
I just kind of wanted to know where I stood before I got ready to purchase.
Very helpful advice, Thanks!
Auto loans and credit - Posted by RHnGA
Posted by RHnGA on October 05, 2001 at 22:09:20:
Hello everybody…
I have a question concering my ability to obtain a mortgage on a condo.
The condo will be used as a second home, not an investment property.
The price is 30K, but my questions are…
I was able to finance a car for 22K, but I was wondering would it hurt my credit if I had the loan transferred to someone else and they take over the payments??
Having a new car isn’t as important to me as obtaining some property. That would free up about 400/mo for me to invest.
Secondly, I had a repo in 95, but it’ll be taken off in Mar 02 the debt is for around 2K Should I pay it off or just wait 5 more months until it’s gone?
Here’s an outline of my credit report. Would this be good enough to secure a mortgage? If so, for about how much? (If it makes a difference)
Current income: 33K/yr
Public Records:
No Public record Information on file.
No bankruptcies on file
No liens on file
No judgements on file
No garnishments on file
No secured loans on file
No martial stauses on file
No financial counseling on file
No forclosures on file
No non-responsibility entries on file
Auto loan - Date opened 4/01, last activity 9/01
High credit - $13733, $366/mo
Auto loan - Date opened 4/94, last activity 5/95
High credit - $2111, $196/mo, past due $739, Charged off acct.
Cable - Date opened 11/99, last activity 5/00
High credit - $130 past due as of 5-00
Bill paying history.
30 days past due- 1
60 - 0
90 - 0
I pay no rent or have any other monthly bills other than my car.
Will I have a chance to obtain a loan??
Thanks in advance 
Re: Auto loans and credit - Posted by Bruce Lawson
Posted by Bruce Lawson on October 06, 2001 at 19:51:06:
Hi,
If you keep the car in your name and they take the payments over you will still be financially responsible.
Lenders may not even care about the repo since it has been so long ago just be prepared to satisfy it if they require you to for the loan,if you do settle do it with the creditor not the collection agency.
The information you provide shows you do not have much credit but you show a 30 day if that was recent it will drop your score 10 points.
I do not see anything that should keep you from qualiying for a mortgage based on the information you provided.
Sincerely,
Bruce Lawson
Re: Auto loans and credit(LONG) - Posted by Bruce Lawson
Posted by Bruce Lawson on October 06, 2001 at 16:25:47:
Hi,
To answer your first question, if you transfer the car to someone else for them to take over payments unless you sell it to that person you will remain responsible for the repayment of the loan but without the automobile. If you sell the car and clear it from your credit report that will not hurt your credit in fact it will help it because it shows a paid account and displays financial responsibility.
About the repo I would contact the creditor and work out a settlement figure since it is almost seven years they will settle for much less than originally owed, do not contact a collection company contact the creditor who you borrowed the money. Make sure you receive a receipt and tell them you want them to stop reporting this debt or else you may find it still on your reports much past the statue of limitation law of seven years.
The outline you have listed shows a cable bill that is reported as late, is that correct? If so did you pay it? It also looks like you have a 30day that should not hurt you if it was greater than six months old if not it will only drop your score 10 points.
Your Debt/Income ratio looks good what may hurt you is the lack of credit, do you have a mortgage on your first home? I do not see any reason why you would not qualify for a mortgage going on the information you have provided.
Sincerely
Bruce Lawson