Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Auto Loans
Profile Image

Question By
jairo55

3 Contributions
0 People Helped
Repossesiion on a vehicle.
Hello community, I am a 25 year old male making around 75000 a year. I am currently going thru some regret and I wanted some advice. I currently have around 120,000 of debt and i would like to voluntarliy ask for a repossesion on my most recent vehicle. I owe 70000 on it and if they are able to auction it or sell it for 45000 i would have to pay 25000 so that i can be in good terms with the bank. This being said my credit will drop from a 670 to maybe a 400 some? My total debt will also drop to around 75000, Which if things are going good it will be paid off in around 1 year and a half or two. If i am able to pay off my debt, which will bring up my credit a little because of my two vehicle that i will eventually pay off, and I manage to save around 100000 two years after paying my debt (total of 4 years). How hard would it be for me to get a loan of 150000 for a mortgage? Would it be possible? Please help me ASAP cause I am planing on making the call tomorrow. Thank you all!

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
7816 Contributions
1478 People Helped

Helpful to 1 out of 1 people

Don't make the call. Do some reading and some thinking first. What you are proposing does not make any sense. You are considering getting a vehicle repo on your reports in order to get a mortgage in a couple of years. Please understand that paying off the balance owed on a repo is not a beneficial mark on your credit, a repo is a repo and will last on your reports for seven years. Mortgage lenders are not going to say "wow, this guy paid off his repo, he's approved". They see the repo and they see risk, even if you would pay off the balance. Could you try to sell the car? If you can't get what you need to pay off the loan, could you come up with the money to make up the difference? Attempting to sell the car and coming up with money to make up the difference should be your goal now. Also understand that you are not going to be on good terms with your current bank by doing this. Please do some reading and thinking before you make some very costly mistakes that will harm you for years.

Top Contributor
7816 Contributions
1478 People Helped
Helpful to 1 out of 1 people

Edit " you are not going to be on good terms with your current bank by doing this"

what I meant there was if you follow your plan of the repo. My plan of selling the car and making up the difference to make the sale happen would make your bank happy

Reply by
jairo55

3 Contributions
0 People Helped

Thank you, I'll see what I can do and come up with.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.