8 replies to this topic

[MylesGirl]

Hello all,

I am new to the forums and I've been doing some reading. I wanted to do the application form Marv has so kindly offered but I was afraid I couldn't answer all the questions so it would be a waste of time. So I will try to explain the situation and see if getting a new car loan seems feasible.

We (my husband and I) are in debt settlement with Care One. It's a 5 year plan, we are at the 2 year mark next month.

There is a tax lien on his credit report filed in 2003 by the IRS, but we have an installment agreement with them and make monthly payments to them.

His current numbers are as follows:

TransUnion: 558
Equifax: 563
Experian:536

There are 3 small things showing as in collections that I was not aware of. I will be adding them to our Care One plan. They total a little less than a grand.

As far as history with auto loans go, my husband's car is paid off, the loan was through the bank we were with at the time (we are now with a credit union). It was paid off 2 years ago. In 2006 he bought me a 2001 PT Cruiser. It was financed with HSBC, he had the check in hand when he went to the dealership. His credit reports show that was paid off. We later got an offer in the mail from CitiFinancial that was a better deal, so we refinanced with them. They later sold it to Santander. I don't see anything on his credit report from CitiFinancial, which is weird because we paid them for years, but Santander shows on time payments for the entire time they are reporting, starting in March 2010. That loan will be paid off in July. The current payoff on the car is $650. In the summer of 2010 the Cruiser died (needed a new engine and transmission.) We kept paying on it and got me another car from a "buy here pay here place." Had it about a year when the engine on that one went out (totally not my fault, I swear, the mechanic said the problem started long before I bought it and wouldn't have been detected at the time). We made 13 payments on that car, all showing as on time. The dealership actually took it back and let us out of the loan. We got the Cruiser fixed, but the mechanic, we found out after the fact, was shady and I just don't trust it anymore. It's also an 11 year old car and we have a 3 year old and we want something new, reliable and safe for the family. However, car loan history is good.

He has been at the same job for nearly 8 years. Monthly income, provable by paystubs, is $6400. (I bring in another $1500-$2000/month, but I guess that's not usable income with just him on the loan. I am "self employed" because I have been on contract with a small company since 2010, although I have set hours and a set job.) He has been in the same house, with an owner financed mortgage, for 12 years. As I said, we have an agreement with the IRS we can show proof of, as well as enrollment in the debt settlement plan now for 2 years.

I have fallen in love with the Nissan Juke, but I have no idea how realistic it is to get a new car loan in our situation. Simply looking at our bills as they are now, we can afford the payment and I think having another positive mark on his credit can only be a good thing. Even if the interest rate isn't great (which it certainly won't be.) Trading in the Cruiser should get us about $3000 (KBB) and if we try to buy in June I could have another $3000 in cash as down payment, the car should be about $25,000, so I'm guessing a loan around $20,000.

Am I dreaming or could we make this happen?

[MarvBear]

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[MarvBear]

Are you in consumer credit counseling?

[MylesGirl]

Are you in consumer credit counseling?

We are in debt settlement with Care One. Two years next month.

[MarvBear]

Are you in consumer credit counseling?

Can you answer this question, I'm afraid I don't know what debt settlement is

[MylesGirl]

1335228800[/url]' post='4666902']

1335225695[/url]' post='4666851']
Are you in consumer credit counseling?

Can you answer this question, I'm afraid I don't know what debt settlement is

Sorry. We are not in credit counseling we are in debt settlement. The company is called Care One and they do debt management and debt settlement. Settlement is basically what it sounds like. They deal with the creditors and settle our accounts for less than the original amount due. We were pushed into that when the IRS threatened to garnish my husband's wages for back taxes. Which was the result of a business he owned that he later discovered the gal doing his payroll pocketed the payroll taxes instead of paying the IRS. Thousands of dollars owed, most of it fees and interest since many years had past. Big mess but we have an agreement with the IRS. Of course they don't care if you have debt. Which at the time left us with bankruptcy or debt settlement if we wanted to keep our house and pay for the basics. I was pregnant with our daughter and had just left my job. It felt like paying something on our debts was better than nothing. We always try to do the right thing but you know life doesn't usually care.

Sorry for the long answer just trying to tell you how we got to where we are. Not that it would probably matter in the long run.

[MylesGirl]

I should also add that the tax lien was placed in 2003. It was for tax years 1998-1999. Those years have been paid off, although we are currently in an installment agreement for 2010 and 2011 because my going back to work resulted in much higher than expected owed in taxes. But we are making monthly payments and in "good standing" with the IRS, for what that is worth. I am now looking into whether or not we can get the lien removed or at least marked at paid, since the taxes that the lien was for have been paid.

[MarvBear]

with 3K for your trade vehicle and 3K in cash, then I believe an approval is possible.

[MylesGirl]

with 3K for your trade vehicle and 3K in cash, then I believe an approval is possible.

Thanks Marv!