What to Do If You Lose Your Home

Losing your home is one of the most painful experiences homeowners can go through. Home foreclosure not only affects your credit and takes away your major asset, but it also creates many expenses – such as moving expenses and rental expenses — which may be difficult to meet when you are in a financially vulnerable position.

If you have lost your home or are about to lose your home to foreclosure, the first thing you will need to do is to create a plan. First, go over the foreclosure documents you have received and see whether there are any mistakes made. Consult an attorney if there are, since mistakes in your filed documents can give you more time to sell or refinance your home before foreclosure.

If there is no way to stop foreclosure, your immediate concern is to get back on your feet financially. It may be a good idea to speak with a non-profit group in your community to get some financial advice. You will also need to find a new place to stay. You may need to move your possessions into storage for the time being, until you find a new place. You may need to rent initially. This means you will need to find the funds for a security or damage deposit for your new home. You may be able to sell some of your furniture and possessions in order to defray moving costs. As well, consider reducing your moving costs as much as possible to keep new debts very low. Once you have settled into your new home, focus on rebuilding your emergency fund and increasing your income.