Un-Forseen events causing more renters recently

With the increase in foreclosures and more homeowners that can't afford to stay in their current homes due to financial hardship, job loss or mortgage payments.  People are resorting to renting once again or even staying with family and friends while they try to get back on their feet.

It's not the end of the world 

So you find yourself back at square one either renting or staying at a family/friends house.  It's ok, it's not the end of the world. 

Michael Jordan once said "If you're trying to achieve, there will be roadblocks. I've had them; everybody has had them. But obstacles don't have to stop you. If you run into a wall, don't turn around and give up. Figure out how to climb it, go through it, or work around it. " 

Things happen and although we may not like it, it will happen.  There may be humility involved, disappointment, or even fear which is all normal.  Take it in stride, things happen for a reason and look not at the past but to look forward and focus at the present and future in mind than going backwards.

Believe it or not, there is light at the end of tunnel and heres how and the steps to get back on your feet. 

Re-claiming your future home ownership 

Just because you don't have a mortgage payment to maintain, you still have to make sure your finances and credit is in good shape.

• Making Rent on time -  Just because when your rent it doesn't get reported to the credit bureaus, it does not mean to start SLACKING on making payments on time.  When you apply for a new mortgage, Lenders often look at your ability to repay the loan by examining your last 12 month rent history.

• Extra Cash Flow - So you gotten some extra cash flow coming in now due to either downsizing to a lower payment than your used to or even renting free with your family, don't waste your extra income source by thinking its more for you to spend.  Be smart and start putting the extra income to a savings account and start by building your Reserves and Assets which are critical to applying for a future loan.

• Foreclosure Impact - Don't let the "F" word deprive you of all hope.  If you had a foreclosure, its in the past and a mistake we can learn from.  This is the most crucial time to start building a consistent track record of ability to repay a future loan. Don't wait and start making timely payments now!  In little as 12 months paid on time payments can secure you a new mortgage in no time.

• Bankruptcy Impact - You just filed a chapter 7/13 bankruptcy and feel like you washed out all your outstanding debts, don't become over zealous and start racking up new credit lines, you went into bankruptcy for a reason and need to practice a new "B" word...."BUDGETING".  Learn from your mistakes start off small with a few low limit credit cards and build a track record.

• Do your homework - Analyze the main reason why you got yourself in this position in the first place.  Was it because of an Adjustable Rate Mortgage? A no documentation loan ? Divorce ? Job loss ? Pin Point the exact weakness that made you lose your house and find a solution to fix it for the future!

The Future 

Don't view this is a closed door, as the saying goes "As one door closes another door opens" things happen for a reason, and learn from your mistakes and take advantage of it for your future judgments and actions.  Best of luck in getting back on track and hopefully you will be once again a future homeowner.

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As always thanks for checking out my blog, feel free to leave a comment and have a great day!

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