I Make Good Money But Have a Low Credit Score and Need a Mobile Home


Dear Steve,

I’m an RN with a decent income 100k annually.

I am trying to get approval for a mobile home loan.

Denied by the lender due to a low score of 600.

I have 2 lates from Ford Credit due to CALIF wildfires last year.

Displaced from burnt home.

My cc debt is high as I was off work last year due to wildfires.

Need this new loan desperately to move out of storage and buy a new mobile home. Help!

Can you refer or help with my situation?



Dear Shelley,

I could not confirm if Ford Credit had an assistance program that was available for your particular fire. They might have. But Ford Credit does have a telephone number for you to call and check, 800-723-4016.

If they did have a forbearance program it would have been for two payments and if it is even possible, they might be able to go back and put your two delinquent payments into that program and that would eliminate the late payments from your credit report.

If that is the only thing bringing down your credit score that should take care of it. However, I suspect you might have some other credit reporting issues that are negatively impacting your score as well.

I would recommend you go to AnnualCreditReport.com and get the free copy of your major credit bureau reports you are entitled to. Look to see what else is bringing down your score. My experience tells me there are some other issues like maxed out credit or some other negative items from the horrible fire disaster.

What we are faced with are two choices. The first is if you want to focus on rebuilding your credit over time and can afford to pay down the current balances. Since you are in a high cost of living state it is a concern that even with your current salary the budget may be straining under the pressure.

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A solution like credit counseling would help resolve your debt situation over about five years. It does not depend on your credit score to participate.

Credit counseling may result in what’s known as a Debt Management Program. A DMP can lower your interest rates, freeze late fees and penalties while reducing your total payments by 30 percent – sometimes as much as half and can get you out of debt much faster than with your current payments.

However, if this is a more immediate crisis then a faster solution would be more appropriate. In that case, a consumer bankruptcy would do the trick but with your income, a Chapter 7 bankruptcy may be out of reach. With a Chapter 7 bankruptcy, your debt is totally eliminated in about 90 days and you can begin to rebuild your credit immediately.

You might want to find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.

If bankruptcy is the right financial choice then you should not be afraid of it. The FederalReserve found people often do better financially after bankruptcy.

The logical course of action here would be for you to have an open and honest discussion with your mobile home lender. Ask them what they need for you to deal with to get over the purchase hump.

It might just be that you will have to rent as you repay your debt.

Only you can determine what is best for you. My recommendation is to talk to a bankruptcy attorney and see if there is any creative way to get you to qualify for a Chapter 7 bankruptcy. Also, talk to a credit counseling agency and discuss how they can help you pay down the credit card debt at a lower interest rate than what you are paying now.

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“As a nonprofit credit counseling agency, we provide a free debt analysis to anyone who wants it,” says Gary Herman, president of Consolidated Credit, which has been around for over 25 years. “Even if we recommend or you pursue another solution, you still have that analysis from a counselor who has been trained and certified to assist you in knowing your options.”

“Another advantage to a debt management program is that you send one check, or have one payment automatically drafted, for all your debts in order to pay them all on time,” Herman says. “No more worrying about juggling payments.”

Please come back and post an update in the comments with what you decide to do.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

Damon Day - Pro Debt Coach

Steve Rhode

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