Foreclosures are huge financial and personal setbacks. Here’s how you can work through the difficulties.
After foreclosure, a mortgagor is given a redemption period of one year from sale to redeem the property. If you can raise the credit amount, interests, and costs of foreclosure, you may get your home back.
If the period has lapsed, go back to basics – get your finances in order. Cut out unnecessary expenses like unused gym memberships, frequent eating out, and impractical purchases.
You’ll need to downsize your living arrangements as well. Opt for cheaper accommodations. Move in to a smaller place where you can split the cost of living with other tenants; or move in with family or relatives who can provide you free room and board for the time being.
Work through professional, financial, and personal setbacks
Foreclosure is often brought about by losing your job, illness and its medical costs, mounting debt and interest rates, or difficulties in one’s personal life. Devote your time and resources to working through these issues, whether they’re work-related, financial, or personal. Heal and then learn from the experience. Secure and maintain a new job if you need to, and work on saving up and getting back on track once more.
The Philippines still has to widely operationalize a credit information system. Local banks still mainly rely on ability to pay instead of credit scores. To secure another home loan, get work and improve on your income earning ability.
Learn from the experience
For the next real estate purchase, get a good grip of the market and loan institutions. Compare bank interest rates. Check out government agencies and other financial lending institutions, like Pag-IBIG Housing Loan and Home Credit Philippines. Evaluate your options thoroughly to arrive at the best choice, and consult with experts to be able to pay for and maintain a new home.