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Posted in Auto Loans
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zippydoodah

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Similar problem as AFcomm but included in bankruptcy
Hello, Hoping JBirley 15's still able to help with this question. Thanks for your very insightful answer to the first poster who described his situation which quite similar to our situation. My score is currently a bit higher at 680ish. Balance on our van payment is $2,500. I can, if advised, pay this amount off, but would rather keep the cash in my savings. The only difference in our scenario and the other poster is that we were discharged in bankruptcy 2 yrs ago and included the house in the bankruptcy. We too moved out and rented a place (while we were still in good standing with our credit profile and mid 700's score). The rental payment is half what our mortgage was. Meanwhile we rented our house to our daughter and her "then" fiancé. Our thought process was that in the event they stayed long enough, we could recover from being "under water" and sell as soon as we could make a tiny enough profit. But you guessed it...they stopped paying the rent and we decided not to move back. We stopped paying the mortgage approx. a year ago. Foreclosure is imminent with the expectation that the bank will have possession by next month. Meanwhile we wanted to improve our credit profile a.s.a.p with a small loan of 6k or so on a used motorcycle. We don't need a 20K car. I pay the $1,500 "secured" credit card with Cap one off in full every month and never pay interest on it. Our van payment is doable and it is likely to give us plenty more years of service. Fortunately even though the van was included in the bankruptcy, the bank has been wonderful to deal with. We have never skipped a beat paying the van loan on time. I am wondering if we will look any better to any financier on a small motorcycle loan? Want to get it done before we get hit with the foreclosure. Thanks for your help. Much appreciate this forum.

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