How to Obtain Auto Financing after Bankruptcy or Foreclosure

Welcome to RightsRadio.com. I’m Dr. Joyce Starr, and my guest is our resident expert on auto financing/auto loans, Dora Lee Stallard. Dora Lee is on a mission. “Our auto financing program gives me a chance to reach out to people – to help people feel good about themselves. It’s almost like a ministry.” Based in Indiana, Dora Lee Stallard is an “angel” auto financing coach for consumers across the nation. Show Date: September 16, 2010.

Listen to the program – enjoy the highlights below.

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Good news on auto financing.

Q: How has the economy has affected auto financing in general – particularly the accelerating numbers of foreclosures. Are auto lenders tightening their belts – especially for those who filed for bankruptcy or went through foreclosure?

A: Actually no. Financing is available. In fact, I feel that companies in this arena are doing even more to help.

Q: I would have expected you to say just the opposite – that auto financing has tightened up exactly like mortgages.

A: Lenders I work with understand that there’s is a human side to this. They have to get up and go to work every day themselves. People have the option to buy a house, but may have no choice regarding a car.

Q: What about rates?

A: Rates vary state to state. They’re set by auto finance committees.

Q: What are the prospects for auto financing if someone filed for bankruptcy?

A: People often surrender their vehicle during bankruptcy because they’re upside down on their car. But they still need transportation to get to their job. Banks and lenders who specialize in auto financing want to know if the person (or couple) was prompt in paying car payments, if they previously paid the minimum due monthly and if they’ve done their homework before seeking another vehicle.

Q: What homework must they do?

A: First, you should understand what’s available in your state. You should identify dealerships in your area that are able to help you. You can’t get into an auto loan without putting money down. Be prepared to put down between $500 and $2500.

Q: What if they don’t have it?

A: If even $500 is almost impossible, lenders will work with me. But you may not get the SUV that your heart desires. Be realistic. I’ve had consumers wait months to come up with the $500.

Q: Please describe your program.

A: My particular program is pre-owned vehicles. The lenders want to see a vehicle that is mechanically sound. You must have proof of income – at least six months of bank statements for those who are self-employed. Never give your credit info over the phone. Go in and meet the person who is working with you. Try vehicles on for size. Find one that fits your budget.

Q: What else should the buyer be ready to provide?

A: Proof of residency, a utility bill and phone bill. Some require as many as 10 references of people that can verify that they know them.

Q: Isn’t that a potential privacy violation? What if the buyer defaults?

A: The lender won’t force references to pay for the car if the buyer defaults. In fact, they’re unlikely to contact them at all – unless help is needed in locating the buyer.

Q: What if the person doesn’t have a job.

A: No bank will lend to someone who is not employed, unless they’re on social security or social security disability.

Q: You have two websites with excellent information.

A: Yes, please visit freshstartindy.com and freshstartindy.net. We provide information on auto financing, how to improve your credit score and also identity theft protection. Your listeners can contact me directly through the form on freshstartindy.com.

Letter to Bank USA

Banking on Humor to Get You Through the Banking Crisis

Dear Sirs,

In view of what seems to be happening with banks at the moment, I was wondering if you could advise me correctly about the following.

If one of my checks is returned marked ‘insufficient funds,’ how do I know whether that refers to me, or to you?

Sincerely,

A Troubled Customer

Credit Guru Joe Stallard: How to Repair Your Credit

Rights Radio.com features credit guru Joe Stallard: Lifting the shroud of secrecy on credit issues, credit repair, credit bureaus and how you can raise your credit score.

Following a career spanning some 15 years in financial services, Joe Stallard has gained valuable insights into the inner workings of the credit and finance industry. His experience includes both the auto industry, where he was the "dreaded" finance manager, and the mortgage industry as a loan officer.

Joe discusses credit issues – including credit repair, recovering from bankruptcy and dealing with the credit bureaus – in a practical, no-nonsense approach sure to get results.

Lifting the shroud of secrecy surrounding the credit and finance world, he offers the consumer a common-sense strategy for dealing with real-world issues that impact the majority of people today.

Joe will address the ten most common questions that he encounters.

Listen to Rights Radio on July 16, 2008 at 5:00 PM EST for the answers. Join our mailing list below & receive a direct link to the LIVE show. Call-In Number (US/Canada): 1.888.815.9756

A few highlights:

• I have always had a sterling credit rating, or so I thought. Yet, my credit score is still not very good. Why is this and can I do anything to raise the score?
• How can I get derogatory stuff removed from my credit report?
• When I contacted the credit bureau about removing a derogatory item, they said that they had confirmed" the bad item. What’s up with this and how can I change it?

Joe Stallard is a member of the Rights Radio Braintrust. If you would like a private, one-on-one telephone session with Joe, please visit our Contact page.