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How to Bounce Back After Foreclosure

How to Bounce Back After Foreclosure

There are so many foreclosed homes on the market, and more are on the way. You did everything you could to stop foreclosure from happening, and it happened anyway. It's an unfortunate situation but there is life after foreclosure. Here's how to recover.

Look for a new place to live. Your credit rating is damaged, and it's not recommended to purchase a new home after you lost your previous one to foreclosure. You will have to rent a home or lease an apartment/townhouse until your credit rating has recovered. Another idea is to live with family. You can stay there while you build your bank account or cash reserves back to a stable level.

Create a spending budget. You do not have the luxury to splurge on an unnecessary leisure. To stay afloat you will have to cut out that unnecessary leisure and spend money on what you truly need to survive. While it's better to pay cash many people have credit cards. You will have to watch what you spend with credit cards too. If you need help with budgeting contact a financial representative.

Keep other debt to a stable level. Some of the budget finances will have to go toward other debt. It's easier to get in debt with credit cards because you don't see the money leaving you. However, you will see it when the credit card bill comes in. It's important not to max out your credit cards because it will hurt your credit score toward purchasing another home. For medical bills, student loans and other debt make sure the monthly payments are paid on time.

Check your credit report. Foreclosure stays on your credit report for seven years. Your credit will not go back to normal overnight; it takes time and patience to bounce back. Until then you can look at your credit report for errors. Correct those errors by communicating with the company that made it. There are websites that allow you to check your credit level for free.

As long as you pay your bills and keep your budget in line your credit rating will improve over time. The Law Offices of James C. Shields can assist with any foreclosure situations you're dealing with. You're not alone. You have us on your side. Contact us for more information.