Learning From Experience
When
it comes down to it foreclosure is really about your ability to manage
debt. There are many reasons that people face foreclosures that are
not their fault. Job loss, the economy, unexpected illnesses and divorce
are just a few examples but lack of income doesn't cause foreclosure,
debt does.
One
thing is for certain. Facing foreclosure is an experience that you
will not
soon
forget.
It is probably
one
of
the
most stressful situations that a family can endure. Changes of this
magnitude teach us is that it is the people in your life that are important,
not the material things.
After
Foreclosure Is A Time For New Beginnings
A new home for certain and
possibly a new attitude towards debt. Nearly everything that we use debt
for can be obtained without it but it requires sacrifice. Managing
debt properly requires doing without some of the things that you want
until you can actually save enough money to pay for them. It may be
a novel concept in today's world but historically is has been the method
of choice. Why? Because the stress factor of saving for something is
a small fraction of the stress factor of being obligated for a payment
every month. After
foreclosure you will know this lesson as well as the
man that carries a cat by the tail learns not to.
Finding
A New Home After Foreclosure
The
two greatest fears that anyone has when facing foreclosure is the
fear of losing their current home and not being able to find
a new one. The fear of losing a home is justified and is a certainty
if you are not able to find a way to sell your home or resolve the
debt before foreclosure.
Finding
a home after foreclosure may not be as hard as you think. Qualifying
for a mortgage with a lender immediately after going through foreclosure
will be nearly impossible. You may even have a hard time renting a
home if credit is an issue. Your best alternative may be to look for
an owner financed or lease option home. The economy that brought
us the housing bubble, the sub-prime crisis, and the mortgage meltdown
also brought along a friend. The increasing popularity of lease
option homes.
Lease
Option Homes
Lease
Option homes are known by many names, Rent To Own, Lease Purchase,
Owner Finance, and Lease Purchase are just a few of the terms used
to describe similar arrangements. The similarity in all of these cases
is that the owner of the property is also the financing source. Qualifying
with a property owner that has a vacant property for sale on today's
market is usually much easier that qualifying with a traditional lender.
In some areas there are even investors that will purchase a home in
order
for
you to lease purchase it.
Lease
option homes will typically require a 3% to 5% Option Fee in order to
move in. This fee is negotiable. Keep in mind that it is not a rental
deposit. In most cases it is not refundable. The Option
Fee gives the tenant/buyer
the option to purchase the home after a period of time for a given
price. Making sure that you qualify for financing at that time is up
to you. Currently there are lenders that will finance three years after
a foreclosure but that may change in the future. Make sure that your
Option Period gives you ample time to re-establish your credit
after foreclosure.
Lease
Option homes can be a great deal for the buyer and the seller
if the terms meet both of their needs. An appraisal and home inspections
are
suggested in this case just as in the purchase of any home. For more
information check out RentToOwnTheRightWay.info
Repairing
your credit will take time. Of you want to be as efficient as possible
in this endeavor you may want to team up with a reputable and experienced
credit repair firm. Don't be mislead buy those that claim they can
repair all of your credit within a matter of weeks or even months.
After foreclosure it will be a matter of a few years. How few years
will be determined by your future credit worthiness and the quality
of your credit repair specialist.
Still Have Credit Card Debt?
If you have been through foreclosure and still have credit card debt now is a great time to consider eliminating it through a credit card debt settlement plan. Settling credit card debt is the process of offering the lender a lump sum payment to cancel the indebtedness.
