Expert: Dick Dennis - 7/19/2008

Question
Dick
I currently have a 2.5 acre parcel of land and need to borrow from the equity in it to pay on a car repossession that occured earlier this year we owe $12,000. Our credit scores are in the low 500's the SEV on the property is 16,500.  Because of the low credit scores and the repossession I've been unsuccesfull in finding a lender.  Me met with a bankruptcy lawyer and the repayment amount per month was so high he suggested we not do that.  Any advice would be appreciated

Answer
This is a matter for a bankruptcy attorney, Jeff. You need to do a chapter 7 where you do not have any payments, but you most likely would need to pay the attorney up to $2,500 up front, depending on the complication of your case. As for the land parcel, very few lenders are willing to lend on vacant land, especially owing money on a mortgage (as I think I understand it, Jeff) and with a repossession in the picture, as you have already found out. You're just going to have to start all over again from square one. When you have done your chapter 7 (not 13 or 11) then you can start building up your credit again. It can and will be done if you will only apply yourself. I do wish you well.

Dick Dennis