Knowing What to Expect After Foreclosure
The results of a foreclosure can be devastating - emotionally, financially, and to your credit. In most cases, your credit will be negatively affected for up to 7 years. The good news is that you can repair your credit with time and hard work – the sooner you begin working to restore your credit, the better.
In as little as 2 years, and up to 7 from the time you lost your home to a foreclosure, you can rebuild your credit and even consider homeownership again. In fact, with effort and planning, you can put yourself in an even stronger financial position.
If you recently lost your home to foreclosure, it’s important to remember that you’re not alone and there are many affordable places to rent – even with impaired credit. Once you’re settled, you can begin to rebuild your credit and focus on the future.
Your last homeownership experience ended in foreclosure, but you shouldn’t assume that you’ll never be a homeowner again. Homeownership still has all the benefits you found attractive initially, and next time around, you can be a better prepared borrower.