Determining your next steps after your home has been foreclosed on can seem like an intimidating undertaking, especially without the aid of some useful pointers. It’s unlikely that you’ll get approved for a loan, so purchasing a home isn’t a logical expectation. However, renting a home or an apartment after foreclosure can be an excellent option. Follow these steps, and you’ll be moving into your new rental property in no time.
1. Determine Your Budget. The first step should be to create a realistic budget for you or your family going forward. You’ll want to include things like utilities, insurance, medical, and personal expenses. When coming up with an estimated figure for rent, keep in mind that you shouldn’t spend more than 25% of your income on housing. Determining your budget and sticking to it is an absolute necessity to avoid succumbing to debt.
2. Evaluate Your Credit. One of the key aspects landlords consider when approving your rental application is your credit history. Find out your credit score before proceeding in your search. If you’re able to make any improvements to your credit score before applying, you should do so. In the event that your credit score still isn’t strong enough, seek out a cosigner to apply with.
3. Find Your Ideal Property. Look for properties for rent by an individual, rather than a management firm. It’s more likely that a homeowner will be more understanding of your situation, as the application process will likely lack the strict standards management companies typically adhere to. During your search, try not to let your circumstances limit your scope; there’s no reason you shouldn’t be able to find a home that’s a perfect fit for you.
4. Plead Your Case. It sounds intense, but it shouldn’t be. Explaining your situation to your potential landlord will help put his mind at ease, so be honest. It’s important for you to show that in spite of your struggles, you can afford this rental. One good method of proving that is to offer to pay a higher security deposit than the landlord requests. This show of good faith goes a long way. However, make sure you get this security deposit agreement in writing.
Once the keys have been handed over, remember to take a deep breath. The hardest part is over. You’re headed towards a stronger financial future, and that is worth celebrating. Don’t forget to stick to your budget as you enjoy your new home and this new chapter in your life.
If your home is being foreclosed on, your first step should be to contact an attorney. You don’t have to face it alone. A Miami foreclosure defense attorney, like one from our team at Graham Legal, can help guide you through the process and beyond. Set up a free consultation today to get started.