Recovering from a Foreclosure

Recovering from a Foreclosure

0 Flares Facebook 0 Google+ 0 LinkedIn 0 Twitter 0 0 Flares ×

recovering from a foreclosureRecovering from a foreclosure can seem like a daunting task but there are plenty of steps you can take to get back on the right path.

When someone goes through the foreclosure process, there are going to be some severe and serious repercussions. For example:

  • Expect your credit score to take a couple hundred point dive
  • Don’t expect your credit score to go up any time soon. Over time the effects of the foreclosure will diminish but it will take you a couple of years to get back to where you were before the foreclosure.
  • It will be harder and more expensive to borrow money. Every time you buy anything that involves credit, from a cell phone to a car, you’re going to deal with the foreclosure being on your record. Lower credit scores mean you pay more to borrow money, might not be eligible for the best deals and might not be offered credit at all.

If you’re looking for some tips on recovering from a foreclosure, we can help! We’ve assembled some of the most effect tips to cleaning up your credit life and getting back into a home eventually.

Don’t Ditch Credit – Fix it

A foreclosure can be a very traumatic situation to go through. Once you’ve been through that meat grinder your first inclination might be to just ditch credit all together.

That is a mistake!

If you ever want to buy a car or house again (and not pay astronomical interest rates), creditors are going to want to see steady and responsible credit use. So, don’t cut up those credit cards or close those accounts. Instead use them and pay them off in a timely manner. Over time this will paint a picture of you as a credit worthy individual and that foreclosure will be the outlier in your past.

This means you will need to take a good long look at your life and make some serious changes. You’ll want to formulate a budget and stick to it as well as start saving, even if it’s a small amount.

By changing how you deal with money and credit, you will slowly start to repair your credit score and will be in a better spot when you go to apply for another mortgage.

Check for Errors

When you’re recovering from a foreclosure one of the first things you should do is get a credit report. You can’t fix what you’re not tracking and you need to know where you stand credit wise.

But more than just that, you should go through your credit report and make sure there are no errors. I can speak to this personally as when I went to apply for a mortgage I a few years ago.

There were several hits to my credit that had nothing to do with me. My score was being dinged for unpaid cable bills and tuition from the Bellevue, Washington area. I’ve never been to Bellevue, let alone had cable or went to college there. It took a few weeks to sort it out, but my credit score jumped after those false marks were removed.

Give Us a Call – We Can Help!

Here at D&D Property Solutions we have seen all kinds of credit situations and plenty of foreclosures. Trust us when we say, there is a light at the end of the tunnel.

We’re more than just property investors; we are full service property solutions providers. This means we can help you start this next phase of your life out on the right foot.

If you’re currently going through or have just gone through a foreclosure, give us a call at (267) 888-8987. We have helped many people who are recovering from a foreclosure and we can help you too.

Leave a Reply

Your email address will not be published. Required fields are marked *

0 Flares Facebook 0 Google+ 0 LinkedIn 0 Twitter 0 0 Flares ×