Ways To Begin Recovery After A Foreclosure

Losing your home is never easy, but you can take steps to help alleviate some of the common stresses involved. Thinking ahead and setting both short term and long term goals, while also knowing what to expect, can help you recover more quickly from this difficult time.

Secure Your Living Situation

Your first goal for you and your family is to secure a safe living situation that is affordable and relatively comfortable. Options usually include renting or living with family. Keep in mind, a rental may require an extra deposit if you have poor credit or a recent foreclosure.

If your home is purchased by Freddie Mac, you may be able to stay in it using an REO option which allows you to rent your former property on a monthly basis. You will need to be able to pay market rental rates and you must be other requirements as set by the company.

Set Up a Debt Plan

The last thing you might want to do is look at your credit report after a foreclosure, but the sooner you begin to rebuild it, the sooner you can get your life back on track. Come up with affordable payments on your debts that you can make, or work with an outside debt management company to help overcome your debt.

Keep in mind, you may still owe money on your house after foreclosure if your home is worth less than what you owe. Your former mortgage lender can take legal action or garnish your wages to get this money paid back. In this case, it is best to be proactive and offer to set up a payment plan you can afford, instead of waiting for the lender to come after you.

Know All the Options

If debt repayment or owing money after foreclosure is going to impact your finances to the point where you cannot afford a safe place to live or will be under extreme financial hardship, it may be worthwhile to pursue bankruptcy. A bankruptcy attorney can help you go over your debts and legal responsibilities to see if this is a good solution for you. They will then weigh these, along with your future goals, against the various bankruptcy options so they can help you choose the correct one.

You have many options after foreclosure to get your life back on track. The trick is to face these challenges head on as soon as possible.

To learn more about foreclosures, contact a law firm like Jeffrey S Arnold Attorney At Law P.C.