Bankruptcy / Foreclosure / RV purchas

[kb9tbq]

I am relaying question on behalf of a friend, i know credit, but not mortgage needing some assistance. try to make long story short.

Friend had a bankruptcy but spouse insisted on reaffirming the house, they did a quick deed sale, and just received notice that the occupants have left, and the house is in danger of going into foreclosure.

Friend is trying to get approved for Recreational Vehicle, but was denied cause the dealership quoted her credit score being 620 range, and said she needed a 680 score.

My question is can she just let it go into foreclosure and walk away, would the dealership approve her on the loan with a foreclosure. I just don't know if an RV is a special loan like mortgage or an auto loan.

I plan to review her credit and locate any bankruptcy errors and submit for correction, and hope that pushes her score up over the 680 range, it has been 2 years since the filing. Please advise me if i neglected further details needed to advice on this matter, thanks

[Denita]

So there was an actual reaffirmation of the mortgage in the BK? Check to see if it was properly filed with the courts. Hopefully it wasn't filed.

If they reaffirmed the mortgage and now are in foreclosure, this is a problem.
If it is reaffirmed and in foreclosure - are they upside down on the property? If so, have them short sell it. If they are not upside down then a sale ought to be much easier.

How much are they putting down for the RV? What is the LTV she was asking for in the purchase? In any event, having a F/C after a BK is a large credit issue for getting any type of loan with a high LTV or risky collateral, especially since she has a relatively new BK and a FC that is happening right now.

By the way, "selling her house" with a quit claim deed does not mean she sold her house according to her current lender. She just got rid of the asset, not the lien on the asset. She put herself in a very bad spot. There are other ways to achieve the same goal without releasing the asset. (Think of Contract for Deed type)

[2ndTimeAround]

Good Advice Denita!!!!!!

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