Ziay!

solomae

getting a home mortgage? the sofa and loveseat feel apart after 2 months tried to get the company to give my mom something better of equal value.Refused to do so.Let them pick it up,they sold it we paid it off.Credit manager had entered it in as a repo.Her credit was very good before.Is getting HUD loan hopeless?

cdslsmn

Not at all. It is easier to get a home loan than a car loan. Now there is a bit of a credit crunch right now and lenders are being a little more strict but it is possible. They want you in a good equity position and you have to have good credit other than the furniture repo......They will understand the repo if you explain it.

HelpMeEscrowStuff

Hopeless? No... difficult? Yes.

Right now, the mortgage companies are being very strict. They will nit pick everything because they've been stuck with a billion loan issues. This repo has probably lowered your credit rating significantly which means you will be paying a very high interest rate on a mortgage.

What you CAN do is write a letter of explanation and it will help your cause dramatically if you can get the furniture company to write a letter on your behalf which basically states the same thing you did.

I would also suggest disputing the record with the credit bureaus so you can have them marked as "in dispute". Chances are, it was a customer satisfaction issue and the furniture company did nothing to fix it. If it turns out it was the furniture company's fault, you can take legal action against them to remove it from your record. I would send a letter of dispute to the furniture company as well advising them they need to remove this off your credit record due to the problem being their fault and not yours.

Basically, don't lay down and let them walk all over you because this *will* harm your chances on getting a mortgage if it is lowering your fico score dramatically (it almost always does).