It’s something that no homeowner wants to experience - foreclosure. But in the aftermath of job layoffs, illnesses and divorce, this is a sad reality for many people.
Banks don’t want to foreclosure, and they typically offer several provisions to help distressed property owners. Unfortunately, there aren’t solutions for everyone, and some people ultimately lose their homes. There are, however, ways to recover and overcome the damaging effects of a foreclosure.If you’ve lost a home to foreclosure, here are three tips to bounce back.
- Move in with friends or family. Getting an apartment after a home foreclosure can be challenging, and buying a new house is out the question for the next three years. If possible, move your belongings to a Pittsburg storage and temporarily move in with family.
- Continue to pay your other bills. Although your credit score will drop after a foreclosure, you can recover. The key is to stay current on your other bills, such as your auto loan and credit cards. If you consistently make timely payments and pay down these accounts, you’ll add points to your credit score.
- Save your money. You can buy another house approximately three years after foreclosure. But at this time, lenders will require at least 10% down. Once you get back on your feet financially, start saving your money.