Auto Loans after Foreclosure
Having a home foreclosure is no longer the black mark it formerly was when it comes time to apply for a bad credit car loan
What we can tell you
Car shoppers with blemished credit histories due to home foreclosure will find that subprime auto lenders are more lenient about this than in the past.
At Auto Credit Express we know this is true because we’ve because we’ve spent more than twenty years helping consumers with credit problems find dealers that can arrange for approved car loans.
This includes providing an understanding of the bad credit auto loans process to prospective applicants. Not long ago, we discussed those situations that typically trigger an automatic denial from high-risk lenders. Today, we’ll touch on a situation that was formerly on the list that, for the most part, is no longer that much of an issue – depending on the circumstances.
Home foreclosure
Not that long ago – just before what is now known as the “great recession” – applying for a subprime auto loan with a home foreclosure showing on your credit report was nearly what those in the business would call an “approval killer,” depending on the time that had elapsed since the proceedings were finished.
In other words, it hardly mattered what was reflected in the rest of your credit history, if you let your home to back to the bank (negative information that remains on your credit file for seven years), most high-risk lenders saw this as a very negative factor.
Fortunately for many people, this is no longer the case.
Car loans after foreclosure
If you’ve experienced a home foreclosure, here is what you need to know concerning poor credit auto lenders:
1. Typically, it doesn’t matter whether the foreclosure process has been completed or not.
2. Usually it doesn’t matter whether or not you are currently living in the foreclosed property
2. If you’re still living in the foreclosed property, the lender will use that mortgage payment in calculating your debt to income ratio
3. If you’ve moved out of the foreclosed property, the lender will use your new rent or mortgage payment in calculating a debt to income ratio
Keep in mind that these lenders are looking for ways to approve your auto loan application, but the real key is that you, and the deal, have to somehow fit within their approval standards. These lenders are used to seeing rough credit, so they place less emphasis on a single isolated event in your credit history and instead concentrate on other factors.
You should also be aware of the fact that these lenders are far more likely to approve someone with situational bad credit (where credit problems can be traced to a single event such as job loss) as opposed to a person with habitual bad credit (an applicant who has never paid any bills on time).
Paying well on a previous car loan will also help your cause.
The Bottom Line
If you’ve been turned down for a conventional auto loan due to a home foreclosure, we want you to realize that there is an alternative to buy here pay here/tote the note car dealers. Signing up for one of these loans won’t help your car credit situation because these dealers don’t report loans or payments to the credit bureaus. As a consequence, you could find yourself in nearly the same situation the next time you need a vehicle – even if you made all your payments on time.
Instead, we suggest you check us out here at Auto Credit Express where we match applicants up with dealers that can give them their best chance at auto loan approvals with lenders that report to the credit bureaus.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online auto loans application.
Home foreclosure
Not that long ago – just before what is now known as the “great recession” – applying for a subprime auto loan with a home foreclosure showing on your credit report was nearly what those in the business would call an “approval killer,” depending on the time that had elapsed since the proceedings were finished.
In other words, it hardly mattered what was reflected in the rest of your credit history, if you let your home to back to the bank (negative information that remains on your credit file for seven years), most high-risk lenders saw this as a very negative factor.
Fortunately for many people, this is no longer the case.
Car loans after foreclosure
If you’ve experienced a home foreclosure, here is what you need to know concerning poor credit auto lenders:
1. Typically, it doesn’t matter whether the foreclosure process has been completed or not.
2. Usually it doesn’t matter whether or not you are currently living in the foreclosed property
2. If you’re still living in the foreclosed property, the lender will use that mortgage payment in calculating your debt to income ratio
3. If you’ve moved out of the foreclosed property, the lender will use your new rent or mortgage payment in calculating a debt to income ratio
2. Usually it doesn’t matter whether or not you are currently living in the foreclosed property
2. If you’re still living in the foreclosed property, the lender will use that mortgage payment in calculating your debt to income ratio
3. If you’ve moved out of the foreclosed property, the lender will use your new rent or mortgage payment in calculating a debt to income ratio
Keep in mind that these lenders are looking for ways to approve your auto loan application, but the real key is that you, and the deal, have to somehow fit within their approval standards. These lenders are used to seeing rough credit, so they place less emphasis on a single isolated event in your credit history and instead concentrate on other factors.
You should also be aware of the fact that these lenders are far more likely to approve someone with situational bad credit (where credit problems can be traced to a single event such as job loss) as opposed to a person with habitual bad credit (an applicant who has never paid any bills on time).
Paying well on a previous car loan will also help your cause.
The Bottom Line
If you’ve been turned down for a conventional auto loan due to a home foreclosure, we want you to realize that there is an alternative to buy here pay here/tote the note car dealers. Signing up for one of these loans won’t help your car credit situation because these dealers don’t report loans or payments to the credit bureaus. As a consequence, you could find yourself in nearly the same situation the next time you need a vehicle – even if you made all your payments on time.
Instead, we suggest you check us out here at Auto Credit Express where we match applicants up with dealers that can give them their best chance at auto loan approvals with lenders that report to the credit bureaus.
So if you’re ready to reestablish your auto credit, you can begin now by filling out our online auto loans application.
