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Posted in Auto Loans
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Question By
JamesM717

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Question about repo
Please bare with me....


I am a co-signer to a van that was repossessed last year. I knew the vehicle was repossessed but I was never sent the remaining balance NOR was I contacted in anyway regarding how much was owed. I figured the bank received enough from the sell to cover the cost. Well I was wrong. After running my credit I see that there is 12,000.00 left to be paid! I called the lending back who informed me that the debit was sent to a collection agency. I called the collection agency to find out that the primary signer has no interest in working out a settlement. SO I worked out a settlement with the collection agency that I will be paying.

After working out a settlement (in monthly installments) I called the original lender to talk about my debt-to-income ration. They said my credit report should be showing a "charge off" due to the primary signers lack of trying to settle. Here is my question...

My credit report shows I "pay" $479/month for the repo van (so my debt to income ratio is not in my favor right now). The primary signer has "charge off" on her credit report. I am trying to buy a house and we meet all the requirements EXCEPT debit to income ratio due to this Van. The original lender said we can request a "charge off" and it would show that we pay nothing monthly.... but it sounds like I will be hurting myself if I do this? I worked out a monthly settlement but none of that will show up for the time being. So the real question is: If the only thing holding me back is debt to income ratio should I ask for a charge off or will I just be hurting myself more?

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I would take your mortgage lender's advice.  Since it was already repo'd the worst of the damage has already been done.   If your current potential mortgage lender doesn't work out, check out www.naca.com, a non-profit group offering mortgages to middle & low income folks and credit scores don't matter.  4% interest, zero down, zero closing costs.  Best of luck!

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