Life after foreclosure is a difficult time; you have just lost your home. Perhaps you’re living with family or renting an apartment. You may have lost a lot of your belongings for lack of storage space or inability to move them. Living conditions vary for those who recently went through foreclosure. No matter what your situation is, there is one thing you have in common with one another; your credit has suffered. While rebuilding your life, you also need to rebuild your credit.
Foreclosure Recovery Tips:
- Establish a Budget: And stick to it! Be realistic on what you can afford; try to set at least a small amount aside each month for an emergency fund. An emergency fund should have enough in it to cover at least 6 months of monthly bills and living expenses. Proper planning is critical for survival and rebuilding your life after foreclosure.
- Get a copy of your credit report: You can visit annualcreditreport.com to receive a free copy of your credit report from 3 major bureaus. It is not uncommon for credit reports to differ between bureaus or to contain errors. Look them over and be sure errors are corrected.
- Restore your Credit: A credit restoration (or credit repair) kit can be purchased at most office supply stores. They contain step by step instructions and sample letters to credit bureaus and creditors. This is a long process and should be started immediately.
- Rebuild your Credit: If you still have active credit cards, use them and pay them off each month. Otherwise, establish a credit card account; you may have to get a secured account, but that’s a start. Use it and pay it off, on time, every month. After about 6 months, apply for store credit or a car loan. Keep balances very low, make timely payments.
- Educate yourself on Alternate Financing: It will take some time before you will be able to get a traditional <a href=”https://www.umoveon.com”>mortgage</a> or other financing. Learn all you can by researching financing alternatives for credit challenged people. The next home you purchase could be with a land contract or lease option. Find out how each works, tax advantages and payment terms to see if it fits your current financial situation.
Life after foreclosure is an overwhelming time. There is major loss to recover from and you need to rebuild. Start with a good financial plan and write down reasonable goals for the next year. Learn as much as you can about personal financial planning and saving while you are going through the process of rebuilding your credit. <a href=”https://www.umoveon.com”> Foreclosure</a> is not the end of the world; you can recover.
This article was written by David Smith of U-Move-On, a company who helps people find the best solution to their foreclosure problem. They provide the resources and services for help with the entire foreclosure process, credit restoration, finding another nice home, moving expenses, legal help and more. Dave enjoys using the many skills he has learned during his career to help people in foreclosure “Move On” with their lives in the best possible way.
David Smith, Founder
400 Ann Arbor Rd #185
Plymouth, MI 48170