My husband and I are financially strapped our car notes are $600 ea. Both are under my credit. He already has a repo I don't. We want to buy a house. How will turning in one car affect my credit and our future plans to buy a home? Would it be a set back or is it better to wait till I have my baby (approx. 6 mo.) and go back to work?
2007-07-11 06:44:15 · 3 answers · asked by dazia z 1 in Cars & Transportation ➔ Buying & Selling
With him having one repo on his history, his credit is not that good to begin with. For you to qualify for $1200 per month in car payments, you must have, at least at one point, had very good credit!
I have to assume that you owe more on both cars than they are worth (often referred to as being "upside down") because if you owed less than you owed, you could sell the car and pay it off!
If you allow a car to be repossessed, the finance company will sell it. The amount that they car sells for, less any and all costs of the sale (which can run into the 100's or 1000's of dollars themselves) will be applied to your loan balance. They may be willing to put you on a payment plan for the balance, but seeing as you did not live up to your loan agreement in the first place, most likely they will not. They will send you a demand letter for the balance. If you do not pay the full amount, they will sue you, and get a judgment against you!
Now you have a judgment and a repo on your credit! They also will ask the court to seize any bank accounts, and/or garnishee your wages!
A much better choice is to find a way to pay for the cars. Maybe you and your husband can work overtime, or get a part time job to increase your income. You want to buy a house, but have not saved any money towards a down payment (or you would be able to use that to help pay for the cars) You need to work out a way to pay your current obligations, before you try to add additional expenses.
I am not trying to be harsh, but it is the truth!
Good luck
2007-07-11 07:33:22 · answer #1 · answered by fire4511 7 · 1⤊ 0⤋
Repo is going to hurt your credit, like the first person said who answered this question. The middle part of your question is a bit hard to answer considering we don't know your credit score and credit history, buut you may need to build some more credit before buying the home but first you'd need to check your credit score.
2007-07-11 13:52:50 · answer #2 · answered by Anonymous · 0⤊ 2⤋
repo, voluntary or not, will hurt your credit immensely. sell your car outright before you let it go to a repo.
2007-07-11 13:48:54 · answer #3 · answered by michael_oxgood 4 · 1⤊ 0⤋