IF YOU are one of the thousands of homeowners who have recently lost a home or other property to foreclosure, I know how you feel at the moment. Maybe you are feeling depressed, frustrated or even angry. Listen to me. It’s not the end of the world. Believe it or not, there is life after foreclosure and things are not as bad as you think. You may not see this 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.
A foreclosure shows on your credit report for 7 years but a lot of banks will still consider your application for a home loan 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 that it is possible to rebuild credit after foreclosure or bankruptcy over a very short period of time. It is not true that you need to wait 10 years before you can get credit again.
If your household expenses have significantly gone done down after foreclosure due to your reduced housing expenses, for the first time in a long time, you may now find yourself in a position to be able 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 yet 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. If you have a second trust deed on your property, make sure you consult with an attorney to find out if you will still owe this debt even after foreclosure. In some cases you will, in other cases you won’t. Most people who are facing foreclosure are also buried in other debts (usually credit cards) and need to find a way out so they can start over. If this is your case, we can help. For a free office consultation, please call Toll-Free 1-866-477-7772. We have offices in Glendale, Cerritos ,West Covina and Valencia.
* * *
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)
| < Prev | Next > |
|---|
