Having to face a foreclosure is hard. According to the law, a foreclosure can stay on your credit report for seven years. It can lower your credit score and make it more difficult to apply for loans. Therefore, if you are in this situation you need to pay close attention to post-foreclosure financial management including managing debt.
Post-Foreclosure Financial Management
The good news is a foreclosure doesn’t have to ruin your credit forever. While the foreclosure remains on your credit report for seven years, the impact on your score will lessen over time. How can you work on better post-foreclosure financial management? These are simple steps but adds to the value of better financial management.
Pay Bills on Time
When rebuilding credit is your priority, it is important that you are paying your bills on time. Your responsible financial management helps positively for post-foreclosure financial management.
Don’t Buy Credit Help
One thing to be wary of immediately after a foreclosure is anyone promising to keep your foreclosure off of a credit report or from hurting credit. There’s no way around the dip in your score! Save your money from scammers and don’t buy such services.
Seek a Housing Counselor
Speaking with a certified housing counselor is always helpful with your post-foreclosure financial management. This way you can make a plan for the short and long-term. In the shorter-term, you can think about your new housing and budget. Then in the longer-term, you can think of helpful ways to build and restore your credit.
Prepare for Higher Rental Deposits
One of the other costs that you could anticipate to increase when it comes to post-foreclosure financial management is your rental deposit. In the event, you settle down on a rental property your landlords will be at ease with a higher security deposit given your situation. Once you move into a rental property, be sure to pay your rent on time and keep payment receipts to make life after foreclosure easier.
Speak with one of ACCC’s certified housing counselors for your housing and foreclosure-related questions! Call 800-769-3571 ext. 1919.