How Do You Establish Credit After A Foreclosure?
If you have just been through a foreclosure, the future can seem pretty bleak, at least when it comes to getting another house and repairing your credit. The good news is that with some diligence and a little hard work, you can completely recover from a foreclosure. Typically, you will need to wait three years before applying for a new mortgage, but this will give you time to fix your credit. Settle your debt with the bank. Often, after a foreclosure, the bank will require that you pay back at least some of what you owed. This is the debt you need to focus on first. If possible, get the bank to offer you a partial settlement deal or try to work out a payment plan that you can stick to. Pay down your credit cards. You will need to keep your balances as low as possible. This will help your credit score go up since you will have plenty of available credit that you are not using. This is probably the best way to establish credit after a foreclosure. Make all your monthly payments on time.
