A foreclosure is a proceeding in which the mortgage lender obtains a termination of a mortgage borrower’s legal right of redemption to a property.

This is done in an attempt to recover the balance of a past-due loan by forcing the sale of the property.

In simple terms, the lender takes legal ownership of the property and sells it to recover their funds.

The reality is that foreclosures are rarely simple. They are usually quite complicated, filled with hostility as the lender attempts to evict the homeowner, and regularly takes years to complete.

In most states, the borrower (person, who obtained the loan) has a statutory right of reinstatement.

The right of reinstatement permits the borrower to bring delinquent loan payments up to date within 90 days of receiving notice that the lender has filed a foreclosure complaint.

The right of redemption is another right the borrower has in most states.

During the redemption period, the borrower may pay off the loan in full in order to avoid a foreclosure sale of the property.

The redemption period expires the later of the 3 months after a judgment of foreclosure is entered by the court or 7 months after the borrower receives notice of the initial foreclosure complaint.

Once the lender has obtained a judgment of foreclosure and the redemption period has expired, the property is sold thought a judicial sale.

The borrower’s rights in the property are extinguished, and property must be vacated.

A foreclosure reporting on your credit report is obviously going to cause substantial issues to your credit scores but, the main issue most people face post-foreclosure is going to be finding a new place to live.

Most mortgage lenders will have consumers wait a minimum of 2 years before they will even consider them for a new mortgage and renting is going to be very difficult with a low credit score but, not impossible.

Although most management companies have strict guidelines for tenants applying for a residence, a private landlord may be more amenable to renting to someone after a foreclosure.

Make a personal appeal and explain your situation, if that doesn’t help you can always offer an extra month security deposit in order to sweeten the deal.

Now that you have a place to live you can focus on rebuilding your credit scores.

If you don’t have any active credit you will want to start re-establishing your credit by opening up a secured credit card. Pay your bills on time and carry a small utilization. Try stringing together 6 months of perfect payment history and you will see an improvement in your credit scores.

CreditFirm.net has helped thousands of clients improve their credit scores and move on with their lives after a foreclosure.

We have also helped many clients remove foreclosure accounts from their credit reports due to inaccurate information and other non-compliance issues.

If you have a foreclosure on your credit report, contact CreditFirm.net to find out how we can help fix your credit after a foreclosure and improve your credit scores.