Many going through or just completing foreclosure on a home think the worst is over, but in many cases people find it hard to regain a sense of control or normal after their home is foreclosed. Planning, preparing, and understanding how life may be different is essential to picking up and moving forward after a foreclosure.
Where to live--One of the items to start thinking about early in the foreclosure process is where will I live after the foreclosure is final. It is true that a recent foreclosure may hinder you from renting a home and for most people blocks a new mortgage for a minimum of two years. Start reviewing your housing options early in the foreclosure process and understand your new home possibilities and limitations. Landlords may require higher deposits or other items such as a co-signer due to your recent foreclosure. Review your home options and select your next home before you turn over your property to help reduce stress, provide time to pack, and give you something to look forward to during the foreclosure process.
Credit Fallout--Once your foreclosure is final and other creditors become aware, be prepared for possible changes from your other creditors. Any loan that has a variable interest rate may increase as much as thirty percent. Applying for new loans may be difficult and receive higher interest rates for the first two years. Try to have other debt payments up-to-date at the time of your foreclosure to minimize the level of upfront changes from creditors.
Taxes--Even though you foreclosed on the home, you may be responsible for a portion of the taxes owed on the property. This typically occurs when the amount the lender recovers is less than the amount owed, and the lender is not able to completely pay the amount of taxes owed. Work with an accountant to ensure that you make arrangements for any taxes that you are required to pay.
Life after a foreclosure is challenging, and you may have multiple questions. I am here to help and answer any questions that you may have. We can review your options together, so you can make the best decision for you and your home. You can contact me, Laura Austin, at (281)789-2911 or 936-321-2977 or email Laura@RealtyTx.net. To find out more information on short sales and avoiding foreclosures visit my website.
