So you finally got through it! Congratulations! You just got rid of a huge debt that was only going to get worse. Maybe you have already moved into a rental or in with family or friends for a short reprieve from payments, or maybe you are still looking for a place to live for a year or two. You may still have a bad taste for home ownership, but believe it or not, home ownership can be a good thing, under the right circumstances.
It’s now time to pull up your own credit report, see how your sale was reported to the credit bureau and start the credit repair process. It can be a scary thing to do, but hey, you are a short sale survivor! You can face fear and overcome. Be brave!
You can go to www.freecreditreport.com or some other reputable agency and see your current credit score and other information. You can work on getting your score back up one step at a time.
There are currently mortgage programs that can assist you in getting a new mortgage in 2 years and sometimes less. Hopefully these programs will continue. There is new buzz about programs getting created for those whose only problem was their distressed mortgage, so we will keep you posted on any progress in that arena. Check back from time to time for updates.
If you are paying rent to a rental company, ask them if they report to the credit bureau. This will help you to build your score back up faster if it has taken a hit. This can be an important step if you want to buy in the near future. Even if you don’t want to buy another house, you may need a car or some other big-ticket item that you will need a good score for. Even some employers pull credit before hiring, so you may need it for a job.
If you have taken several hits on your credit, you may need a credit repair specialist. Be very careful when hiring someone in this arena. Ask for personal references or find someone who will give you a personal recommendation. Realtors and mortgage brokers can be an excellent source for a referral in credit repair.
Just think, you may be able to buy a home in a year or two that was nicer than the one you had before, with a much lower monthly payment in a location that you could not afford when the market was at its peak. Don’t worry, there’s plenty of time. Just enjoy your new-found freedom for now and start working on your comeback!