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Life After Foreclosure
by John M. Roberts

Although foreclosure is a traumatic experience, you can recover and buy another property.

Foreclosure takes away a property owners legal rights of possession, use, and enjoyment of the property in which he holds title. A foreclosure is implemented to satisfy unpaid loans and/or liens on which the property is being held as collateral.

As for the property owner, a foreclosure is a traumatic experience that causes emotional, physical, and financial stress. It may take years to recover from the stress and humiliation of losing a home or other property through the foreclosure process. But like any other life changing ordeal, life goes on.

A foreclosure, like other traumatic experiences, is something that must be put in perspective. Although it is hard emotionally, you must remember that there is light at the end of the tunnel. Losing a home is a humbling experience but you will survive it. Time will help diminish the pain and eventually you will recover and move on to something else.

After a foreclosure, you should immediately start rebuilding your financial health. You must understand that it's going to take time, but if you work at it, it can be done. You have to begin by dealing with whatever it was that caused you to go into a financial crisis in the first place.

Remember, the foreclosure wasn't the underlying cause of your problems. Foreclosure was just part of the end results. What caused the problem is still there. It had to do with the lack of money and your inability to pay your debts. You must acknowledge this as fact and figure out what went wrong. Did you lose your job? Did you take on too much debt? Was it due to a divorce or a separation from your spouse? Was there a long term illness or injury? There had to be a reason why you couldn't pay your mortgage.

Next, you must establish a plan and make goals to fix the problem. Your plan should be realistic and your goals reachable and you have to keep your eye on the prize. How well you do this will depend on your ability to stay focused and how you go about regaining control over your finances and using other options that may be available to you.

Begin by looking at the income and other resources you have at your disposal. You may have to develop multiple streams of income by taking a part time job or by starting an in home business. You may have to sell things that are not relevant to your existence such as unnecessary cars and trucks or other items that you are paying for but don't need such as cable or satellite television with all the movie and sports channels.

You may have to stop buying designer clothes and shoes, expensive jewelry, going to spas, and taking cruises and vacations. You may have to cut back on expensive hobbies such as bowling, playing golf, taking fishing trips, or gambling.

Foreclosure does not mean that you can never own your own home again. In as little as three years, if you pay your bills on time and keep your credit in order, you may be eligible for an FHA backed loan and you may be able to qualify for a conventional loan after seven years. That may seem like a long time, and it is, but if you work on your goals, the time will pass quicker than you think.

If you seriously want to get back on track after foreclosure, it can be done. You may have to make some changes to your lifestyle and your ego may be bruised for a while, but sticking to your plan and meeting your goals will do wonders for your financial health.

About the Author

This information is provided by John M. Roberts of John Roberts Realty located in Moreno Valley, California.  He can be contacted at jrobertsrealty@yahoo.com.



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