If you have had a car repossessed, a property foreclosed on, or have declared bankruptcy, it has a major effect on your ability to get new credit.  A foreclosure or repossession will stay on your credit report for seven years.  A bankruptcy will stay on your credit report for ten years.

If you had a car repossessed, you may owe your creditor money after the repossession.  Generally, the value of your car does not cover the outstanding balance of your car loan.  You may also owe collection fees, back payments, and back interest.  Your credit report will reflect not only your repossession, but also the remaining balance in collection.  You want to pay off the remaining balance as soon as you can.  You may be required to pay it off before any new credit is issued.

The proceeds from a foreclosure generally covers your outstanding debt, foreclosure fees, back interest, back payments, back taxes, etc.  However, the foreclosure will remain on your credit report for seven years, severely reducing your qualifications for a mortgage within two years of your foreclosure.  You will generally have a higher interest rate and will be required to put a larger down payment to secure your mortgage.  

Mortgage Trust Group, actually has loan programs which allow you to qualify for a mortgage within a month of foreclosure.  We can also refinance you out of foreclosure if you have equity in your home.  Contact one of our loan officers for more information. You generally need at least 35% equity in your home.

If you are 62 or older and have equity in your home, you can use a Reverse Mortgage to save your home from foreclosure.  Contact one of our Reverse Mortgage Specialists.

Bankruptcy stays on your credit report for ten years, severely reducing your qualifications for a mortgage within two years of discharge.  You will generally have a higher interest rate and will be required to put a larger down payment for your mortgage.   If you made late payments to your bankruptcy trustee or have not re-established credit, your qualifications will be further reduced.

Contrary to common believe, a bankruptcy will not stop a foreclosure, nor does it mean that all your debts are forgiven.  Be sure to pay any debts not included in your bankruptcy.  Bankruptcy is the last resort for credit problems.

Mortgage Trust Group has loan programs to refinance your property to buyout a Chapter 13 bankruptcy.  We can also finance you one day out of Chapter 13 bankruptcy.

If you are 62 or older and have equity in your home, you can use a Reverse Mortgage to buy out your Chapter 13 bankruptcy.  Contact one of our Reverse Mortgage Specialists.

Also see: Understanding Your Credit; Credit Scores; and Divorce and Credit.