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Question By
imanage717

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credit repair attempt or bankrupcy?
I have 2 repos on my credit report due to losing 2 jobs in 3 yrs, I have 8 accounts in collections (more like 4 but they have all been sold to collection agencies show both are showing) I really want to buy a house soon, I could probably pay off the collections but dont see how I could pay the repos. Info I have read on FHA says 2yrs after bankruptcy to be eligible. Should I just go bankrupt and start over or try to pay off what I can. Current score is 545.
Thanks

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Well, I just looked at FHA qualifications and one is a "solid record of timely payments" which would definitely rule out bankruptcy.  Bankruptcy really messes up your credit for 10 solid years, so you want to avoid it if at all possible.

Repos are usually sold at auction, and you would be billed for the deficiency, if any.  You should have heard about that before now.

Those collection accounts also don't bode well on the credit.  They should be paid off as quickly as possible.

You masy want to start a savings account to build the funds up for a down payment on a house.  That would help lower the amount borrowed WHEN you are able to qualify for a mortgage (you don't right now, I'm afraid) and possibly lower the interest rate.

IF you were to get a loan right now, it would be high interest and you want to build your credit up to where you can qualify for a lower rate of interest.  In the meantime, keep renting an dmaking regular payments on all accounts you have so that they are paid on time.

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