The foreclosure epidemic had taken a serious turn in the United States of America in recent months. The outbreak was now gnawing at the root of all the states in the nation and by the end of the year 2009 an unprecedented 5.5 million houses was expected to be foreclosed on. The American Dream would be undone, and thousands of Americans devastated, homeless and emotionally drained.
According to financial expert Ilyce R. Glick of www.thinkglick.com, people felt humbled when they were foreclosed on. An immense sense of failure too gripped them that could only be cured through a prolonged healing process, he added. Glick had given seven suggestions to heal the wounds: -
01) Face the music: - One had to be prepared for long-term repercussions once he had been foreclosed on. The banks would unanimously reject all and any loan applications from a borrower who had been foreclosure on and he would not even qualify for conforming loans from Fannie Mae and Freddie Mac, although a foreclosure was not as disqualifying as a full-on bankruptcy.
02) Pull your credit report: - Everyone was entitled to receive a free annual credit report from three major credit unions and to assess one’s own credit worthiness was the best way to start fortifying oneself from further damage. Undoubtedly it would take a long time to regain one’s financial health back but the process could start-off immediately.
03) Optimize your credit rating: - It was important to purchase one’s credit report from FICO.com to find out the extent of input that was required to rebuild the lost credit reputation, build up savings and continue to pay-off bills on time. It was not enough to set back to the pre-foreclosure status only. Building a financial back-up was essential.
04) Downsize your life and cash in: - One would be smart to sell off excess material possessions and save them in interest bearing checking account that would come in handy when purchasing a reo home in future.
05) Lean on family friends: - Post-foreclosure, one could consider shared living with family or friends while sharing their budgets and monthly expenditure.
06) Consider a lease to own: - A lease-option could be considered as the best alternative wherein the tenant could pay rent and an added amount each month that finally covered the price of the house.
07) Re-educate yourself: - one could attend a free course on financial management or visit the Consumer Credit Counseling Service.