Saving Your Income
Your income is usually the only source of cash you have access to while dealing with such a financial setback. Ensure that you use your money astutely and economically, while saving as much as possible. Stacking up your revenue can help significantly in the journey towards rebuilding your finances efficiently. Do overtime at the work place or take up odd jobs if you have to. Stabilizing your financial situation should be your top most priority at this point in time.
Looking Out For Rentals
Given that a foreclosure or short sale basically takes away your home away from you, arranging for some temporary accommodation should be at the forefront of your to-do list. The best option is to rent until you have sorted out your finances. Staying at a rented place will enable you to have enough money for the payment of your bills and debts and still have enough left to save up for emergencies. Some Landlords are going to be skeptical about renting to you because your credit has been damaged by having a Foreclosure or Short Sale. Be prepared to write a letter of explanation with your offer to rent, explaining your circumstances to show that you are not a dead beat and will be a good risk as a renter.
Creating a Budget
One of the basic and definitely best ways to rebuild your finances is to set a budget for yourself – the best being a monthly budget. Make sure that your do follow the set budget to the letter. Practicing this on a regular basis will not only get your finances back on track, but it will also help you cut down on your spending extensively. Adopt frugality by learning how to reduce and in the long run, eliminate unnecessary expenditure.
Focus on Attaining Good Credit Card Scores
Working towards a good credit score is another very crucial factor that you will need to focus on. While it may take a considerable amount of time, the entire process will be beneficial to you in the long run. Refrain from maxing out your credit cards and always have some balance left in them. Paying your bills on time will result in you getting good credit card scores. In some situations you will have lost all of your credit cards due to the drop in your score. There is usually a department store that is willing to take you on as a risk. Buy small, make two payments (even though you could pay in full). Doing this over time can rebuild your score.
Eliminating All Debts
Eliminating all your debts is essential while straightening out your finances. Start by paying off your outstanding debts and loans slowly but gradually, and you will find yourself getting back on track. While it is not likely that you will be able to pay off all your debts immediately, ensure that you at least pay them off in even installments.
This process is going to take time and use this time wisely. Depending on the type of financing you will seek in the future such as FHA or Conventional, there will be a minimum three year waiting period before you can qualify for another loan. The good news is that as long as you are working your plan, that time will fly by!