Home Buying in Los Angeles>Question Details

Elisa, Home Buyer in Los Angeles, CA

checked my score and it is about 548-551 very poor.. credit.. i have a repo that is 6yrs old.. does it fall off? should i pay it?

Asked by Elisa, Los Angeles, CA Tue Aug 27, 2013

my repo happened in 08 and they put it on my credit in 09.. is it true that it may come off my record?? 2015?? or should i try to pay it off. I have a couple of charged off credit cards all in 08 due to my family losing their house.. causing me to put my money into temporary housing. Fast forward I make way better income now and have a stable job history. Will i be able to one day get a condo or a house of some sort.. something in the $150,000 -$200,000 range.. Is there hope for me? how much would i need to put down?

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6
It falls off 7 years from the date it went 181 days old, or at least it is supposed to. It does still count against your credit score even though it's old, it is just not as damaging as items that are negative within the past 2 years.
There are lenders that can do FHA loans with a 580 score.. I recommend The Lenders Network they will be able to refer you to a lender willing to work with lower credit scores.

Good Luck.
1 vote Thank Flag Link Thu Sep 12, 2013
The best thing to do before looking into buying a condo or house is to fix your credit. The most effective way to fixing your credit score is to pay your revolving credit card balance and debt. If you've had a collection on your credit, there isn't much that can be done in the short run. It is best to pay back any collections as soon as possible. So as time goes on the collection will become more insignificant to your credit score and will help it return to a better score. If you do this, soon enough you will be able to afford a loan and buy a house. Also, it never hurts to talk to a lender. Lenders, like myself, are glad to talk to people like you to see if we can get you a loan. I have been able to give out loans to people in Souther California with credit scores as low as 580. If I can't get you a loan I would be glad to point you in the right direction. So give me a call and I will try to see what I can do for you.

Well I hope this helps! If you have any further questions or if you need a loan, feel free to contact me. Also, if you found this helpful please leave me a recommendation if you can!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
brian.nguyen@nafinc.com
0 votes Thank Flag Link Mon Feb 24, 2014
The repo is old and will not be counted against you.
What you need to is to get your credit score up. I have been working with people for about 15 years to improve their credit so they can by a house. I do not charge for this as I get paid on a mortgage if you and when you get one.

Some people need some professional credit cleaning and I have some good sources for that as well.

Give me a call,

Rich Littlefield
949-297-1207
NMLS 287206
0 votes Thank Flag Link Wed Aug 28, 2013
Elisa: Several answers to this question.

First, nothing falls off your credit report for 10 years. That's right! For some reason the consumer is lead to believe that it falls off every seven years. Not true. If your repo is reported on 2009...it is there until 2019.
Regardless of when you go to purchase a home, the repo will need to be paid off (prior to 2019). As a warning, paying the repo as negotiated sum, will not help you. The deficit amount will need to be cured when you go to purchase a new home.
The underwriting mentality (and guidelines) is that if you want to buy a house, you need to prove that all your previous credit 'woes' have been cured and are not likely to occur again in the future.

Second, yes there is hope for you! You just need to pay the charged off credit cards and repo.
Get evidence from each creditor showing that you are paid in full.
Once done, you will need to let the 'healing' begin. After 12 months have passed, you will see your credit scores bounce up!

Make sure as you pay each charge off, you receive 'paid in full' letter and hold on to it. The creditors are quick to report you as a negative, but very slow to (and sometimes in active) update your file as current.
0 votes Thank Flag Link Tue Aug 27, 2013
I can certainly help you out. You can call me at 408-352-5147 or email me at AGreer@themortgageoutlet.com. You can check us out at http://www.TheMortgageOutlet.com. I will look at your situation and present you with some options.

Alex Greer
NMLS #1056079
0 votes Thank Flag Link Tue Aug 27, 2013
You should start by meeting with a local and trusted loan officer, they can look at your credit and advise you properly. Credit is more weighed on how you are paying now and if your balances are at least half of your current credit limits. With debt that old, it may not help to pay it off. Check with a loan officer who will spend the time and help and guide you.
0 votes Thank Flag Link Tue Aug 27, 2013
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