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Buying a home with a repo and bad credit


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Hi. My husband and I want to purchase a house within in the next year and a half but we have a lot of new co's and a repo that just made a year old. How can we qualify for a mortage without paying the deficiency balance on the repo but paying/settling the credit cards? Our scores are horrible right now between 470 and 520 at the most. Any advice as to what we need to do, need to pay, need to rebuild, not to pay would be mostly appreciated. We know that we can not go conventional but are looking to go subprime. Thanks for your help.

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I think that alot will depend on how much debt is owed overall. Some lenders will overlook certain things but since they are more recent you may have a more difficult time. DH still had some neg's on his report when we purchased in January but they were all over 4 years old with the exception of 1 which was over 3 years old. It is possible but it looks like most of yours will be more recent than that.

If you can give a bit more info maybe we can help a little more.

1. What state are you in (this will help to determine the sol)

2. How much total debt is owed?

3. Do you have any current positive open tl's to work with? If so, how many & what are they (cc's, installment, etc).

I'm sure there are other things but at least with the above questions answered you may be able to get more info.

Good luck!


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  • 3 weeks later...

you are in the same boat as all of us..

i had even lower scores than you a year ago..

i just bought 2 houses..

so here is what you do...

start disputing everything on your cr with the cra..

spend the next year disputing...

get a couple of secured credit cards.

and also start building your credit..

within a year you could be up to about 630 and

that will get you a house..

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From my experience, the REPO is the problem. It is probably over 2500, and many sub-prime lenders don't allow that size of credit problems to be open. Some do, but many don't. There are a lot of lenders that will overlook CO's that are over 2 years old. So:

Depending on the size of the credit card lines, leave them alone, and make a deal with the REPO creditor.


BTW: If you are renting, pay by check, and keep a copy of the check after it has been cashed. If you are living with relatives, pay them and have them cash the check. it is important, so important, that you establish proof that you can and do pay your rent on time.

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