Repossesion on T/B Cr. Report - Posted by Sheila_FL

Posted by Jim IL on October 04, 2000 at 24:52:45:

You said that he negotiated a paydown to $2k.
When he finishes paying that off, make sure the credit report reflects that.
And, to be sure, have him keep a copy of the statement that shows this was “Paid in full” and the account cleared.
He can show this to mortgage brokers and lenders to keep that blemish from hurting too bad.
Jim IL

Repossesion on T/B Cr. Report - Posted by Sheila_FL

Posted by Sheila_FL on October 04, 2000 at 24:25:18:

I lease optioned a home to a T/B about seven months ago. The term of the l/o is two years, and the T/B is concerned about his credit being cleaned up in time to finance.

I’ve seen his credit report, and it doesn’t look all that bad. Besides a few late payments, the one blemish is a repossesion about a year ago. It was a leased vehicle. When repossesed, the car was sold at auction. There was a deficit balance of about $3k, payable over 12 mths. He negotiated an early payoff of about $2k.

How long, in general, do repossesions stay on a credit report? I know bankrupcies take a long time, but I’ve never heard about repossesions.

Also, how much will this hinder his ability to get a mortgage when the l/o comes due?

Oh yeah, he should have $7,200 in credits towards the appraised value of $124k at the end of the l/o.

Thanks a lot.

Re: Repossesion on T/B Cr. Report - Posted by Angela

Posted by Angela on October 04, 2000 at 14:07:49:

There are lenders that will finance just about anyone. I have seen it many times. My understanding is that negative credit may be removed after seven years except for bankruptcy, which is ten years. You can call a local lender to verify if that holds true or not. I’m not a credit wiz. I will tell you that everyday I watch people that have filed bankruptcy and still get the home they want. So don’t lose hope.

Re: Repossesion on T/B Cr. Report - Posted by Michael

Posted by Michael on October 04, 2000 at 01:36:08:

If a lease option is like a purchase, it would be considered refinancing, I believe, which makes it easier to attain. Even if it’s not looked upon as a refinance, with a good two year payment history on the property, he still shouldn’t have trouble getting financing.