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There is Life After a Short Sale or a Foreclosure!

Guest post by: Bud Gragg

Article Overview: As Realtors, we know that a lot of our clients don't think that there's any such thing as life after a short sale or a foreclosure. They assume that their credit will be trashed forever, that they'll become social pariahs, that their foreheads will be forever branded with a great, big, red “L” for “Loser.” OK, maybe not that last one. But you get the picture. Most of us have let ourselves be so brainwashed by the banks that we really believe that a short sale or a foreclosure makes us bad people who deserve to be punished!

There is Life After a Short Sale or a Foreclosure!

As Realtors, we know that a lot of our clients don't think that there's any such thing as life after a short sale or a foreclosure. They assume that their credit will be trashed forever, that they'll become social pariahs, that their foreheads will be forever branded with a great, big, red “L” for “Loser.”

OK, maybe not that last one. But you get the picture. Most of us have let ourselves be so brainwashed by the banks that we really believe that a short sale or a foreclosure makes us bad people who deserve to be punished!

Kristin and I can certainly relate to that feeling! But would it make you feel better to know that we've been through not just one, but multiple short sales or foreclosures in the past 3 years? That's right—we believed the “experts,” too, and we did a lot of investing in real estate before the bubble burst. So, yes, we went through multiple foreclosures and short sales, which we initiated, to get ourselves out from under a mountain of bad paper.

That's right. We short sold or foreclosed on all of our personal properties. And what are our lives like after foreclosure?

We still live in our own home; however, now we're renting it for a fraction of our monthly mortgage payment from the cash investor we sold it to in a short sale.

Our credit did take a hit, but we know how to recover from that quickly (and we can show you, too!). In the meantime, it's really not hurting us to pay cash more often and to live well within our means—which we weren't doing when we thought we were high-flying real-estate tycoons!

We still have our family and friends. No one who matters thinks of us as anything but savvy business people who foreclosed or short sold because we had to save ourselves. And, better yet, our immediate family is more rock-solid than ever!

No sign of that “L” shaped branding iron. We promise.

Of course, you need to be proactive before a foreclosure or a short sale, so you can make the best life afterwards.

First, make sure you keep paying all of your other bills on time. This will make you seem like less of a credit risk even with a foreclosure on your record. And really, consider the millions of other foreclosures taking place during this time period. Does anyone honestly think that the banks will be able to afford to turn us all away as the economy recovers?

If you're going to need a new car in the next 5–7 years, buy it before your first unpaid mortgage payment if you can. This will save you hundreds, or even thousands, of dollars of interest that you would probably be socked with after your foreclosure.

As for the rest of the money you'll be saving when you're not making house payments? Save it up! Don't leave your house before you have to—live there for free while you're making plans for your next move. That's money you'll be able to invest in your future!

So you see, you can have a good, happy, stress free and financially sound life after a foreclosure or a short sale. And the best thing is that giving up your house is a good lesson to us that, maybe, we really don't need all of that stuff and all of that house that we were so attached to. If we learn that, we really come out ahead!

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  Rebuilding Your Credit after Foreclosure on an Underwater Mortgage
  Tips on Avoiding Foreclosure
  Underwater Mortgage Solutions: What Is a Short Sale?
  A Stroll through the Short Sale Process
  Looking for a Simple Short Sale Definition? Here It Is!
  How to do a Short Sale on Your Underwater Mortgage and Avoid Foreclosure
  Home Short Sales: What They Are, How They Can Help
  How to Do a Short Sale and Why
  Don’t Look Back and Other Tips for Life after Foreclosure
  Pre-foreclosure and You: Making Lemonade out of Lemons
  How Long Can I Stay in My House and Other Underwater Mortgage Questions Answered
  Instruments of Financing Real Estate
  Home Staging Aids Homeowners Facing Foreclosure
  Fed announces end to Recession
  Short Sale? Foreclosure? Options for the Underwater Mortgage Holder
  Minnesota Foreclosure Laws
  Deed in Lieu of Foreclosure - Might Be An Answer
  What to Do before Foreclosing on or Short Selling Your Underwater Mortgage

Article Tags: bank short sale, home short sales, house short sale, how to do a short sale, how to short sale, mortgage short sale, short sale, short sale definition, short sale foreclosure, short sale help, short sale information, short sale process, short sale training, what is short sale
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