I lost my home to foreclosure and I am renting

First let me say how sorry I am you lost your home. I know it's a bad place to be in your life, however, try to look on the bright side! Here's some good news, 2 or 3 years after you lose your home you can buy a new or used home with 3 percent down! You can get a low 30 year fixed! Yes! It's true! There is a government program that allows the seller to pay up to 6 percent of your closing costs!

Here are a few things you should do as soon as possible. If you lost your house through foreclosure the mortgage company may be seeking to recover the balance due. This would be any monies you owe over and above what they sold the house for at the Sheriff sale. I will not debate if you should pay it, however, after losing your home you probably needed money for rent and food so, you may be able to file Chapter 7 or 13 bankruptcy to clean up your credit.

The new bankruptcy laws determine what chapter you will be able to file based on income and the type of debt. Seek competent legal advice! Interview more than one attorney to obtain the best price for the correct advice. If you can file a Chapter 7 you may be discharged in a few months with a clean slate. It will take between 1 and 3 years to buy a new home with a low fixed rate and low down payment. You may have other options on mortgages, however, lets try to stick with a low fixed rate loan!

Savings! You will need to show the mortgage company you can save! So learn about the 10% rule. This is where you pay yourself first! You put 10% away into an account you will not touch. Make it a fix rate annuity program if you have to! One that you will be penalized, if you withdraw the money! You know yourself better than anyone, so you know what you have to do to save! If you do not know yourself, then you need to do some soul searching!

Pay your rent with a check! Make sure the bank sends you pictures of your checks every month on your bank statements! Make sure your rent is paid on time! Am I asking too much? If you think so, then you may be living above your means!

My family uses coupons and when my mother checks out at the supermarket, she has so many coupons the manager has to put their key in the register to complete the sale! Mom saves so much in coupons that a manager has to approve the transactions. Mom has the coupons arranged in a file by date expiration and type of coupon! She also has a storage room in her house with products that won't go bad! She has can goods, trash bags and aluminum foil. All in an effort not to be forced to buy when prices are high! Mom believes supermarkets raise the price in stores at opportune times! I cannot confirm this, however, she swears it's true. She tries not to shop at the time of the month when Social Security checks come out!

Living below your means is an art. It's hard to do because it's a sacrifice! However, the rewards are financial independence!

Ok! So now you have savings, a good rental history and you're 1 to 3 years away from a Chapter 7 bankruptcy or foreclosure. You can apply for a mortgage! Ask the mortgage person to pre-approve you! If no one wants to, call me, I will!