Foreclosure can happen for different reasons; monthly mortgage payments are not made, or some type of fraud is involved and the lender has decided to accelerate the loan however, a foreclosure may also be your first step toward financial liberation.
After a foreclosure, the road to recovery can be challenging, but there are steps you can take to get yourself and your family moving forward to new housing, revitalizing your credit, and buying another home in the future. Going through a foreclosure can be extremely stressful and difficult. You can, however, take advantage of this opportunity to make a fresh start with your personal finances.
Focus on paying down debt, creating a solid savings strategy and avoiding new splurge purchases. Establishing a consistent history of on time bill payment is the key to raising your credit score over time. A foreclosure can and will impact your credit score negatively and will make it difficult for you to obtain another mortgage in the next two to three years. Regardless of whether or not you had a foreclosure in your past, it is generally easier to get a mortgage if you have a good credit score and low debt load.
If your state provides a redemption period after the sale, you sometimes have the right to live in the home payment-free during this time. By staying in the home during the redemption period, you can save money by living rent-free. This way you can use the money that you otherwise would have spent on housing to pay other bills and start rebuilding your credit. If that is not an option, try looking into what emergency/transitional housing is available in your community.
Learn ways to gracefully exit home ownership, how foreclosure affects your taxes, how to avoid rental scams, and ways you can rebuild your credit.
Please call us today at 817-484-0212 to speak to us today about our foreclosure counseling services.