How to Survive Foreclosure
Educate yourself on your rights if you feel that your lender is violating them., Take the time during the foreclosure process to build your savings., Get your finances in order., Start searching for a new living arrangement as soon as possible...
Step-by-Step Guide
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Step 1: Educate yourself on your rights if you feel that your lender is violating them.
Although the lender does have a right to collect on the home loan, there are limitations as to how this can be initiated.
For example, some laws state that debt collectors cannot call your place of work or your friends, or that they cannot call you at your home before or after a certain time.
Find out what these rights are, and make sure that you are not being harassed. -
Step 2: Take the time during the foreclosure process to build your savings.
Foreclosure can take months to complete and oftentimes you can stay in your home during the process.
If you have decided to rent a place once you eventually leave the home, you need to be financially prepared to pay a down payment. , Create a new budget based on your income and current loans.
Then determine how much you can put toward your new living arrangements.
When designing a budget, make sure that you set money aside for your savings and emergencies.
Your goal is to create a financial plan that meets your budget so that you can pay off your debts, build your credit and avoid losing any future homes. , Don't leave it until the last minute, or you may be stuck without a place to live, in a place you don't want to live or on someone's couch.
Research all your options, and make sure that you have a secure place to live that is within your budget. , For example, foreclosing shows negatively on your credit score.
In some cases, you won't qualify for any kind of loan.
In other situations, you can get a loan, but your interest rate will be extortionate.
Recognizing these implications should help guide you to make smart choices in the future. , There are also help groups where people in similar situations get together and discuss the effects of a foreclosure.
Share your fears and concerns, and come to terms with the situation. , Foreclosure survival means learning from the situation and not allowing it to consume you, and then you can move on to success.
Use the situation as an opportunity to start fresh. -
Step 3: Get your finances in order.
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Step 4: Start searching for a new living arrangement as soon as possible.
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Step 5: Understand the consequences of foreclosure on your home.
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Step 6: Seek support from friends and family.
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Step 7: Realize that foreclosure on your home does not have to represent a failure.
Detailed Guide
Although the lender does have a right to collect on the home loan, there are limitations as to how this can be initiated.
For example, some laws state that debt collectors cannot call your place of work or your friends, or that they cannot call you at your home before or after a certain time.
Find out what these rights are, and make sure that you are not being harassed.
Foreclosure can take months to complete and oftentimes you can stay in your home during the process.
If you have decided to rent a place once you eventually leave the home, you need to be financially prepared to pay a down payment. , Create a new budget based on your income and current loans.
Then determine how much you can put toward your new living arrangements.
When designing a budget, make sure that you set money aside for your savings and emergencies.
Your goal is to create a financial plan that meets your budget so that you can pay off your debts, build your credit and avoid losing any future homes. , Don't leave it until the last minute, or you may be stuck without a place to live, in a place you don't want to live or on someone's couch.
Research all your options, and make sure that you have a secure place to live that is within your budget. , For example, foreclosing shows negatively on your credit score.
In some cases, you won't qualify for any kind of loan.
In other situations, you can get a loan, but your interest rate will be extortionate.
Recognizing these implications should help guide you to make smart choices in the future. , There are also help groups where people in similar situations get together and discuss the effects of a foreclosure.
Share your fears and concerns, and come to terms with the situation. , Foreclosure survival means learning from the situation and not allowing it to consume you, and then you can move on to success.
Use the situation as an opportunity to start fresh.
About the Author
Marie Robinson
Committed to making DIY projects accessible and understandable for everyone.
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