IF you have recently lost your home to foreclosure, you may feel like it’s the end of the world. You may feel depressed and emotionally devastated. You may even wonder if life can ever be the same again. Listen to me. Believe it or not, there is life after foreclosure and things may not be as bad as you think. You may not see it now but trust me, like most things in life, this, too, will soon pass.
The truth is that most foreclosure victims eventually become homeowners again. But you need to have a solid plan for the future- and the time to start is now. The amount of effort you put in will determine how long it will take for you to rebuild your finances, your credit and your life.
If you have not found a new place to live, obviously that is the first thing you need to do. In looking for a house or apartment, do not be embarrassed to tell the landlord that you recently lost your house to foreclosure and that you are now starting over. These days, there are a lot of houses for rent and what I am seeing is that landlords have somewhat become more flexible when screening prospective tenants. If you have good personal references, stable employment and the money for the first months’ rent and the required security deposit, you should have no problem finding the right place. Of course, not all landlords have the same criteria so you should look around and see what’s out there for you.
A foreclosure shows on your credit report for 7 years but most banks will give you a chance if it is at least 3 years old and you have some type of re-established credit. Work on improving your credit score by paying your bills on time and making sure that your debt to income ratio is not too high. If you were forced to file for bankruptcy as a result of your foreclosure, the bankruptcy will also be reported on your credit report for 7 to 10 years, depending on what type of bankruptcy you filed. But again, although the bankruptcy stays on your credit report for that long, most people are able to re-establish credit only after about 3 years. As a bankruptcy attorney who has helped thousands of clients over the years, I have found this to be true.
If your household expenses have significantly gone done down after foreclosure due to your reduced housing expenses, for the first time you may now be in a position to save money. This is the time to start an emergency fund. Make sure you have at least 3 months’ worth of living expenses put aside. Start putting together a financial plan for your retirement, perhaps a college plan for your children if you are raising a family. Make sure you have adequate life insurance to protect your loved ones. Open a savings account and start putting aside at least 10% of your income every month. If you do this consistently, in a few years, you can have enough money to use for a down payment on your next house.
I don’t know the circumstances that led to your foreclosure but whatever they were, remember that they are no longer of any consequence- unless you allow them to be. So pick yourself up and quit blaming yourself or others for what has happened. The past is an undeniable and an unchangeable fact. But your future is an unlimited, boundless opportunity. Do not allow your awareness of past failures or difficulties to adversely affect your current and future possibilities.
If you have not lost your property to foreclosure but are currently in foreclosure proceedings, you may still have time to act. Or maybe you’re not even sure if you should keep your property or not, and/or if you will be liable for any foreclosure deficiencies after the sale date. For a free office consultation, please call Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos and West Covina.
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None of the information herein is intended to give legal advice for any specific situation. Atty. Ray Bulaon has successfully helped over 4,000 clients in getting out of debt. For a free attorney evaluation of your situation, please call Ray Bulaon Law Offices at TOLL FREE 1-866-477-7772. (Advertising Supplement)
( Published on April 1, 2009 in Asian Journal Los Angeles p. B2 )
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