| December 3, 2012

Re-entering the housing market following a foreclosure

Home foreclosure can be a financially and emotionally painful experience to go through.

Losing a home to foreclosure can be one of the most financially and emotionally painful experiences a household goes through. Many people grow attached to their homes, and some lose hope that they will qualify for another mortgage following a hit to their credit and financial profile. However, those that work to get their credit in line, improve their money management capabilities and change their saving and spending mindsets may be able to qualify for a new mortgage in a reasonable amount of time.

Following a foreclosure, the first recommended action households should take is enrolling in housing counseling. Working a professional housing or credit counselor can educate consumers on the habits that led to the foreclosure and the steps they need to take to overcome their current situation.

Individuals can begin by examining their existing budgeting habits and spending and saving behaviors. A foreclosure may have come about due to irresponsible money management, or factors beyond a consumers’ control, such as unexpected medical debt. Determining which elements contributed to housing strain, and seeking out solutions to overcome them in the present is critical.

In addition, individuals should work to ensure their other accounts are in good standing, or on their way to improvement. A foreclosure can cause significant damage to a person’s credit, and this damage may be exacerbated by mismanaging other credit-related accounts. Therefore, individuals should greatly focus on paying their bills on time, keeping credit card balances low and avoiding applications for new credit. These steps can help individuals begin the task of repairing their credit, a move that will be necessary to qualify for another mortgage in the future.

Start putting money away

Paying off debt and keeping accounts maintained are important following a foreclosure, but so is saving money to re-enter the mortgage market. The down payment on a home can be imposing even for families in a strong credit position, so putting aside a large percentage of income each pay period is imperative to improving a consumers' financial position and home buying prospects. Ideally, buyers should aim for a 20 percent down payment on a home, which allows them to avoid paying private mortgage insurance.

In addition, a hefty down payment will reduce the principal amount buyers may on their mortgage and may prompt lenders to assign more favorable interest rates.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

"We are really proud to recommend Consolidated Credit" Kathleen Cannon, President & CEO of United Way of Broward County. Consolidated Credit Counseling Services, Inc. is pleased to announce our partnership with the United Way as a United Way Chairman’s Circle Organization.

All Consolidated Credit counselors are certified personal financial counselors (CFC) We've helped 5 million people get out of debt! Call us today and see what we can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

Consolidated Credit is honored to receive the 2012 Excellence in Financial Literacy Education (EIFLE) Nonprofit Organization of the Year award. The EIFLE awards acknowledge innovation, dedication and the commitment of organizations that support financial literacy education worldwide. See what Consolidated Credit can do for you.

The National Industry Standards for Homeownership Education and Counseling are a set of guidelines for quality homeownership and counseling services. Industry professionals who adopt these standards can be trusted to provide consistent, high quality advice.
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Consolidated Credit Consulting Services, Inc. has been verified as the owner or operator of the Web site located at www.consolidatedcredit.org. Official records confirm Consolidated Credit Consulting Services, Inc. as a valid business. Call us today and see what we can do for you.

Consolidated Credit is a Certified ISO 9001 company, as verified through Bureau Veritas Certification.

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Time tested and customer trusted. Consolidated Credit Counseling Services has been a BBB Accredited Business since 1998 and has a current A+ rating. Call us today and see what we can do for you.

View the Consolidatedcredit.org review status

Consolidated Credit is proud to be an ANAB accredited member. Accreditation by a recognized and respected body such as ANAB ensures the impartiality and competence of our company. To see what we can do for you, give us a call.

U.S. Department of Housing and Urban Development - HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. Consolidated Credit is proud to be a member of HUD and also part of the Hope Now Alliance.

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