While waiting for the opportunity to buy a new home, the family will need to think about the following items:
A family will need to find a new place to live. A foreclosure typically can hurt a former homeowner's credit score for a number of years, though the exact duration is a matter of dispute because credit companies don't disclose that information. A foreclosure remains on your credit report for seven years, but its impact to your FICO® score will lessen over time. Foreclosure is among the negative items that "are considered quite serious, by Fair Isaac Corp., which generates the FICO credit score.
It is suggested that renters in a competitive market, put together a nice rental resume explaining why they experienced a foreclosure or other credit problems. Show the owner why you want to rent the place and where your job is. Write up a real story. It will be tough, but you need to sell the owner. It’s like a job interview.
The lack of cash of a rental deposit may be a big barrier to re-establishing rental place. Landlords typically refuse to rent to people who have poor credit, which can result from a late mortgage payment, short sale, foreclosure or bankruptcy. Landlords will sometimes accept tenants who have a credit score of 580. But the landlord looks beyond the score; a foreclosure means the potential tenant has not paid their housing bills. That is why the family’s story is an important part of the process. If the rental candidate has a solid job history, the landlord maybe accepts the candidate. A landlord may double the deposit if you are on the edge.
Families who’ve been accustomed to large homes with multiple bedrooms and bathrooms may not be able to find such spacious living quarters because apartments and condominiums are smaller in size. Also families with pets may have challenges finding pet friendly rental housing.
It is recommended that people try to make plans as soon as they think foreclosure is inevitable.