Picking up the pieces and rebuilding a life for you and your family after a foreclosure may seem impossible. You fought hard to keep your home, and it now feels like the world has caved in. What’s worse, the loss of your home was just the tip of the iceberg: you have dealt with collection agencies and credit bureaus for years. If there is a silver lining, you have finally hit bottom.
Taking care of your family’s emotional well being
Foreclosure has become a national nightmare. Millions of people have suddenly found themselves unemployed or underemployed. Banks tacitly encourage the view that someone who defaults on their credit is a bad person, a thief, and a deadbeat. If that were true, many banks would be the first deadbeats and are easily the most condemnable of borrowers and spenders.
You need to find a place for your family. Family members and good friends in better financial standing will afford you a place to rest your head and recuperate. It may not be easy to move in with your parents, but they could be an invaluable resource and an emotional refuge for your children. You will also want to apply for government housing until you are eligible for loans and mortgages again.
You should be ready and willing to help, as much as you can, with the chores and needs of whatever household you are living in. This is rent, and will go a long way in alleviating stress on you and your new landlord. Beyond this, you need to get back to making money, and any kind of it. One of your central ambitions should be to save money and rebuild credit for the future—you still have one.
Of the money you save, be sure you have money for contingencies like medical emergencies, general savings and money for a future down payment on a mortgage or for an apartment.
It is important to remain upbeat and positive. Defeatist attitudes positively yield nothing. Remember—you didn’t create the housing and mortgage crisis, but you can be part of the solution.