My fiancee owes $10K on a charge off auto loan. Basically (and I know this doesn't matter for the loan's sake), in 2003 she was dating an abusive deadbeat who coerced her into cosigning on an auto loan he couldn't afford by himself. He didn't make the payments, and the truck was repossessed. The credit companies went after her since he had no job and no money. She also had no money at the time (she was in college) and the loan was considered a charge off.
I just found all this out recently after applying for a mortgage. When I submitted the pre-approval application, I found that surprise, and saw we're supposed to pay it off to get the mortgage. Is it possible to get the mortgage without paying that off, since I'm the primary borrower and have nothing to do with the charge off? We both have excellent credit scores and good jobs, the only black mark is her mistake when she was in college -- but our ability to repay the mortgage is as good as it gets. Does this matter?
Thanks!
2006-11-26 03:31:03 · 4 answers · asked by Drz 1 in Business & Finance ➔ Credit
It really depends on where you go to apply.
If she is gouing to be on the loan, most companies will require it paid off at closing, while others may just consider you a higher risk and charge a higher rate.
I would reccommend settling it, even as much as I'm sure you dont want to, it will go away forever if you do it correctly.
Here is a good website that has free settlement offer letters you can download, fill in and print. http://www.expert-credit-advice.com/ They also offer the service and do a good job:
If you dont settle it, it is bound to continue to cause you and your girl problems later.........
Good luck.
2006-11-26 04:54:00 · answer #1 · answered by Anonymous · 0⤊ 0⤋
If your credit score stands good without needing hers, then apply by yourself but including her on title. Ask you mortgage company to send you in writing a side-by-side loan comparison of all your options detailing required downpayment, interest rate, terms, etc....!
This option includes price for a loan with just you, another with both of you, and whatever else other type loan he thinks you can qualify for!
As I will continue to say... Let them find you a program to fit in, instead of trying to get you to fit in a program!!!!
2006-11-29 08:49:26 · answer #2 · answered by ALEGNA 3 · 0⤊ 0⤋
Are you insinuating that the banks should just give them their homes they couldn't afford? I don't know...try giving your car to some homeless guy because he wants to drive it and see how that impacts you financially. Too bad you won't have taxpayer money from the government to help you buy a new one. It's asinine any way you look at it.
2016-05-23 04:18:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Yes you can go somewhere else to get mortage there places that will give you preappove mortage
2006-11-26 06:36:06 · answer #4 · answered by pattibcacl 6 · 0⤊ 0⤋