If you are going through foreclosure, know someone who has, or will be shortly, then the following article is a must read.
A notice of default is a tough thing to receive. The initial process is called lis pendens, and is in reference to the beginning attempts at collecting on past due mortgage debt. Whether you called it lis pendens, NOD, or pre foreclosure, the result is the same. The bank wants their money and you have been put officially on notice. You defaulted on your mortgage loan, and have a specific time to correct this before it damages your credit for years to come.
Losing your home can be hard, especially when it’s filled with memories with family and friends. It may be a home that you grew up in, but put as collateral for a home equity loan and had no intention of losing it to foreclosure. There is a time however, when you need to think about the long term. What you do now, will decide how you live for years into the future.
This is a multi-step gameplan for starting over after you have been hit with that devastating letter, and no way to afford correcting it.
Step #1) Give it up.
Remove your emotions from the process for now, and grieve later. If you grieve now, you will only make it harder on yourself to get your life in order later. Reach out to cash home buyers like National Cash Offer, and let them get this mortgage paid off. It will put an immediate stop to the credit injury you have received when your bank reported past due house debt to your credit report profile.
Before you can rebuild, you have to stop the bleeding. This is why you must sell your house fast. Make sure that things are not continuing to report negatively to your credit profile, and then begin to fix your credit score.
Step #2) Reduce & Rebuild.
Find a new place that you can afford. If you cannot afford anything due to job loss, then get help from friends or family. Someone will help you short term so that you have a chance to seek employment and get an apartment.
During this process, you will need to eliminate debts. This means that you should be paying off smaller credit cards, then go up the line to the larger debts. This is the “Dave Ramsey Snowball”, and is useful for debt-reduction.
If you decided to follow step #1 and sell your house fast to save your credit from foreclosure, then you stopped the bleeding. Unfortunately, there has likely been at least 1 reporting to your credit profile already. That negative item remains there for a certain time period which is well over a few years time, unless you fight to have it removed.
Begin a credit repair process after doing some heavy research. Learn about 609 letters, mailing procedures, and schedule. Most importantly, DO THE TASKS. It can take 6 months to a year in order to repair some damage to your credit score.
Step #3) Remove the Rat Race
There are games by Robert Kiyosaki’s Rich Dad called Cashflow 101 & Cashflow 202. These are board games and computer games designed to help you understand the balance sheet, as well as the process for building a passive income. The winner is the first to escape the rate race with enough passive monthly income to achieve their dream.
In order for you to escape from the rat race, you will need a plan of action. You need to begin with an informal process of deciding what you want to do in life, so that you can build a passive income doing it. This may be the path of real estate investment, day-trading, starting an online business, or even starting a company where you must put in labor in order to build a larger business that you can have running itself down the road.
This is the 3rd and final step in a process where you are reborn as someone who has more footing on financial ground. It’s the process in which you become the boss, and your job is to collect your check from your mailbox.
In order for you to start over stronger than ever, Call National Cash Offer toll-free at (877)-990-7774, or fill out the form right here on this website. NO-OBLIGATION.
The post 3-Step Gameplan from Foreclosure to the American Dream appeared first on National Cash Offer.
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