Going through a foreclosure can be a very traumatic experience for families. By law, foreclosure can remain on credit reports for up to seven years, but the emotional scars can last even longer without the proper help. Getting your life together post foreclosure will take time and effort. For starters, you will need to find and adjust to new living arrangements. Additionally, you will need to cut back in some areas and stick to a budget to get your finances in order, a process which ultimately takes a series of steps.
Steps to Follow
A crucial first step to getting back on track after finding a new place to live, is to start cleaning up your credit. The best way to repair a credit score is to continue using credit cards and paying bills on time. One of the worst things to do is to stop utilizing credit altogether. Many foreclosure victims think they are helping themselves by cutting up their cards, but it’s actually only hurting them. When credit cards are no longer in use, this creates a hiatus in credit history, which is nearly as troubling as the foreclosure in the eyes of a lender.
Visiting a counselor for financial advice and setting up short and long term goals is another critical step to get back on your feet. These goals might include determining a living situation and restoring your credit. Your advisor will help you to create a strong budget that’s easy to follow, putting you on the right path for future homeownership. However, it’s important to understand that homeownership often isn’t a realistic short-term goal. Moving into a rental home may be your best or even only option at first. In addition to sticking to a budget, making sure your rent is paid on time will prove to lenders that now you’re handling your finances responsibly.
It Is Possible
Some of you may be reading this thinking you don’t have enough money to follow this advice, but one thing foreclosure victims often don’t realize is that they are entitled to all excess funds from their foreclosed home. Assuming your home was not underwater prior to the time of the sale, this money could be a huge help when getting back on your feet. Even if these funds aren’t substantial enough to get you out of debt, proper budgeting can work wonders for getting you to the light at the end of the tunnel.
If you’re in need of assistance, it’s best to seek out a Miami foreclosure attorney who can offer loan modification(link to loan modification page), foreclosure defense, and even debt defense. Call the team at Graham Legal today for more information.