How to Get Back on the Right Track After a Foreclosure in Georgia

Bad credit affects your ability to obtain loans, rent a home or finance certain items.

The foreclosure of your home is a process that mentally and physically drains your body. Additionally, your credit takes a large hit when you foreclose on your home. To get back on the right track after your foreclosure in Georgia, you will need to focus on rebuilding your credit and creating a monthly budget that works with your income. Once you get your finances in order, you will be able to happily move on with your life.

Instructions

1. Create a list of all your debt obligations after your foreclosure. Any debt that you have, including car payments and credit cards, should be listed. You should organize the list in order of importance. For example, any debt that is "secured," like car and house payments, should be paid initially. Secured debt involves property that a finance company can seize if you do not make payments. You should pay the unsecured debt after the secured debt. Additionally, after the debt is organized by secured and unsecured, the largest debt obligations in each category should be your top priority.

2. Contact the financial companies to which you owe money. Request a temporary delay, or moratorium, on your credit payments. If you can delay your debt obligations for even a few weeks, you will create a buffer that will ease your economic situation. If you are open and honest with credit companies, they will be more willing to work with you.

3. Develop a budget for your household that includes your monthly income, expenses, debt obligations and, if possible, some savings. If you know exactly how much money per month you have to work with, getting back on the right track after your foreclosure will be easier. The Consumer Credit Counseling Service of Greater Atlanta offers help to plan your finances.

4. Rent an apartment or home in Georgia after your foreclosure that fits your monthly budget. Browse the housing market for deals on rentals. You can search in classifieds or work with a rental locater for no cost. If you can knock a few dollars off of your monthly housing cost, you can focus your leftover money toward other obligations.

References

• Bankrate: Surviving a Personal Financial Meltdown

Resources

• Georgia: Department of Banking and Finance