There’s good news on life after foreclosures. The total number of filings reached about 1.1 million in 2015, down 3 percent from 2014 and a whopping 62 percent from 2010.
While the declining numbers paint a rosier picture of the nation’s economy, foreclosures, no matter the number, take a toll on wallets, of course, but also a person’s health.
One study from the Robert Wood Johnson Foundation found that homeowners who are facing foreclosure are more likely to be depressed, not have enough food and skip prescription drugs. And it’s not just the adults who are at risk. First Focus, a family advocacy group, has found that when kids must move because of a foreclosure, it has the same repercussions as missing an entire month of school.
Once a foreclosure happens, many former homeowners find it difficult to get their life back on track. The consequences of foreclosure can be huge -- from a plummeting credit score to tax issues. In some cases, lenders can require a waiting period of up to seven years before a borrower can seek a new mortgage after foreclosure.
Of course, emergencies happen in life. Illnesses, layoffs, divorce and other situations can put a strain on household expenses. Once just a few home loan payments are missed, a foreclosure could be around the corner.
If you’re living life after foreclosure and are wondering how to get your life -- and budget -- back in gear, here are five hacks to help you get started:
You’ve been through a lot. A foreclosure can upend lives, forcing lots of questions about the future. You’ve survived that. Now, it’s time for the hard work required for recovery.
If you are experiencing financial difficulty and are looking for a solution, non-profit credit counseling can help you make sense of all your options. Contact us today for a free financial assessment with one of our certified credit counselors.
Consumer Education Services, Inc. (CESI) is a non-profit service provider of comprehensive personal financial education and solutions for all life stages and for all of life’s milestones. Our goal is enhanced economic security for everyone we serve.
CESI is NOT A LOAN COMPANY