The financial crash of 2008 and more recent events have shown us that nobody is immune from misfortune. We hope all of you have managed to escape the pandemic unscathed but we know some of you won’t. That’s what prompted this post on accessing auto loans after foreclosure.
The good news is that you can access auto loans after foreclosure. After all, if you have a job, you’re still going to need to get to it.
The not so good news is that you’ll probably pay a higher rate of interest on that auto loan as a result of what happened.
Auto loans and foreclosure
If you were foreclosed upon in the crash of 2008, that should have disappeared from your credit report by now. In Ontario, records like that stay on your report for 6-7 years before being wiped.
That’s plenty of time for that particular situation to have disappeared.
If you went through foreclosure more recently, it may still be on your credit report.
Fortunately, after what we have all been through, lenders look much further than just credit scores. They now look much more closely at the bigger picture, which is good news for everyone!
If your foreclosure is still on your credit report, you will likely also have taken a hit on your credit score. That will likely require you to need a bad credit car loan in Milton.
No worries there though as Dixie Auto Loans are bad credit car loan specialists!
Auto loan affordability
As we said at the top, auto loan applications now concern themselves a lot more with affordability. Your credit score definitely comes into it but when you’re applying for bad credit car loans, the lender looks much more closely at the bigger picture.
Can you afford the loan? Will the loan push you close to the edge of affordability? Is your income reliable enough to ensure you are able to repay the loan?
This will likely be more of an issue than the foreclosure itself as presumably, the foreclosure is happening for a reason. That may be out of your control but it’s still something the lender has to take into account.
If you’re still working everything out with your mortgage provider, the mortgage will still count as a debt you have until proceedings have been completed. If things are tough enough now, no lender is going to want to risk putting you further into debt while you’re still having trouble managing what you have.
On the other hand, if foreclosure has been completed, that mortgage debt will no longer count as yours so affordability may be a lot less of an issue.
There is absolutely no reason why a foreclosure should stop you getting an auto loan in Milton. What may provide a challenge is if the foreclosure has yet to be completed or the situation that put you into that position hasn’t been addressed.
If you’re in this situation and need a car to get to work, we recommend talking to our Milton auto loan team to see what we can do. That way, we can assess your personal situation to come up with a solution.
For those of you who know that you have a challenging credit situation, please visit Dixie Auto Loans where we have a team of credit specialists ready to help you get approved for a car loan today!