How can I become credit worthy again after a foreclosure?

Posted on: April 6, 2017 at 1:16 pm

Life After Foreclosure

Unfortunately, foreclosure is a stressful reality for many people in the Tampa Bay area, and throughout Florida. Hard working individuals find themselves facing tough economic challenges, including job loss, foreclosure, bankruptcy, and cashing in their hard-earned retirement savings to pay debts. Hiring an attorney to defend your foreclosure case will provide you with options and a foreseeable end result that can lessen the burden on you and your family.

FL Legal Group’s, Foreclosure Attorneys, take the time to understand the financial situation that brought you to foreclosure. Some options include: loan modification, foreclosure defense, short sale, deed in lieu of foreclosure, chapter 13 or 7 bankruptcy.

In addition to assisting with the legalities of a foreclosure, FL Legal Group can aid you in rebuilding your credit. After a foreclosure, your top priority should be to find a decent, affordable place to live and to start rebuilding your credit. Unfortunately, the time you spend in foreclosure will stall your ability to bounce back from the negative credit reporting.  Once the foreclosure action is completed, it is recommended to begin rebuilding your credit immediately and to create a sustainable spending and savings plan.

Continue using credit: People often make the mistake of closing credit lines or cutting credit cards when their scores take a major hit. Shunning credit altogether only leaves a large gap in your credit history, which is nearly as troubling to lenders as a bad credit history.

Make sure your payments are timely: To avoid missing a due date by accident, set up automated payments. It is advised to purchase small items on credit and pay off the entire balance when the bill is due.

Check your credit score: A federal law allows you to get a free yearly credit report at Annual Credit Report which will allow you to track your progress and monitor fraud.

One of the questions asked by Florida residents who face foreclosure is:

Can I be a homeowner again?

Credit is like beauty…it’s all in the eyes of the beholder.  Although a foreclosure will impact your ability to get a conforming conventional mortgage, the answer is yes.  How long the impact lasts depends on how quickly you can rebuild your credit.  For many people, an FHA loan will be the quickest path back to home ownership. After a foreclosure, the government body requires a three-year waiting period before you can qualify for another FHA-backed loan. There are exceptions, which can speed up the process.

Contact FL Legal Group today to learn about the different options available to you. The firm represents clients in the Tampa Bay area, and throughout Florida.

The main office is located in Tampa at 501 E Kennedy Blvd., Suite 810. Tampa, FL 33602. Call FL Legal Group  at 1(800) 984-9951 or Contact Us to schedule a consultation.

Author: Nicki Asmer
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