Complaint Review: Ally financial -

 Hey sir i really appreciate your feed back. The house dream is all the way to reality. I already have my 20,000 on the 98,000 estimate for the build I sold some land that i have in my name. I was all cleared with a 676. Even with the new truck loan in effect. I am being told by my realtor that is the only thing negative on my credit( ally). Bring it down to 592 which is pathetic. Being so new it effecting them finalizing the loan. I do not have anything in writing to prove or be able to hold anyone responsible.

I agree maybe i should have paid them when they said i was past due but i was going by what I was being told by dealer and ally that i was ok. I have already drawn up prints septic and well has been installed This is the last part of it. I did most of the prework with my own money. So if i decided not to pay a double 1200 truck payment because a loan company was saying i was ok. And refuse to let someone else play with the money i earned I take that responsibility but they are paid and balance is zero dealer hd truck 2 1/2 weeks. So either was its still bad business

But you are misinformed about how loans work. Your auto loan is secured by the car. Your rights to the truck may have been signed over, but regardless of if you actually have possession is independent and has nothing to do with your responsibility to make sure the loan is being paid as you agreed.

Until the loan balance is zero it is your responsibility to make sure the payments are being made. You should have made the reguar payment when it was due.  At the very least when you got the late notice you should have made the payment, not dictated to the lender what you think should happen. The worst that would have happened if you made the payment is that once the dealer did finally pay it off you would have received a refund back for the over-payment. That is something RESPONSIBLE home owners would have done.

Now, I am going to go out on a limb and figure that this "I want a house" is still in the "dream" stage. Where you are not working with a realtor or have applied for a Mortgage. As if you had the first thing they would have told you is the exact same thing I just said...MAKE THE PAYMENT.

So while I won't tell you that you can't afford the house, I am going to hit you with a bit of reality since you are 24 and are still "young" in terms of credit experience.

If you say that you couldn't afford that extra payment there would be be no way you could get approved for a mortgage at this time. As yes Credit Score is important, but there is another part. Your ability to pay. Where if you don't have a few hundred dollars as a cushion it could show you truly can't afford the house.

20% down payment is the "standard", there are programs that allow for less of a down payment but those bring higher risk and trigger things such as PMI. If you currently have 20% down then nothing you posted here will change that and no reason that you should not have paid the payment if for no other reason than to protect you from the negative reporting. As I said worst case...you get the over payment back.

You also have to look at your Debt to Income Ratio. Your total debt payments House(Payment, Insurance, HOA dues, Taxes) plus all of your credit cards, car payments, and other debts can not exceed 36% of your monthly income. So if for example you were making 120,000/year between the two of you. Your Monthly Debt obligations could not exceed $3,600/month.  But if you are using both your incomes then BOTH have to be on the loan and they take BOTH credit scores into account.  That means even if you had an 800 and your wife had a 500...you would have a hard time being able to qualify.  If they only use your score then they would only use your income.  

As for your drop in your credit score. Yes, the late payment would affect it. But also the new auto loan has an effect as not only an inquiry, but as a new line of credit. Which is also why it is not a good idea to open up new credit lines while you are looking for a house.

But the good news is that the older an item is the less effect it has. So within a few months the inquiry would have almost no effect, if you have maintained a positive history since then the 30 day late will be having a minimal affect, and the additional on time payments from your new loan can only help.

Now, with all of this said. If you have something in writing from the dealer that says they were responsible for the payment of the existing loan on or before a certain date and they did not pay it as agreed. Then you may have action against the dealer for any damage they caused. But it will not remove the 30 day late on your credit report.

One final item. You could attempt to dispute the item on your credit report with the 3 credit reporting agencies but as a warning. This may actually have a further negative affect by them removing the entire line of credit which is again totally legal as there is no requirement that they must report at all.

Good Luck