A while back I wrote a series of posts about what happened when Mr. Monkey and I had a home go into voluntary foreclosure (start here if you missed it or need a recap: https://athleticmonkey.wordpress.com/2012/01/24/magnolia-street-part-1/). It has now been just over a year since the foreclosure was finalized so I thought I’d give another update on the after effects of foreclosure now that it is a year later.
– I, and speaking for him, Mr. Monkey continue to have no regrets about the decision beyond wishing we had done it sooner. occasionally I look up the house on Zillow, just out of curiosity about what they think the value is. They are still estimating it at around $100,000 so if we’d held the house for another year we would have been down $10,000 in mortgage payments and would have gain absolutely no equity. There was so much worry that went into the decision but I feel nothing but relief that we did it.
– Though my credit score is still in the below average range, I was able to apply for and got approved for two store credit cards, in addition to the car loan we got last summer. The limits are low but having them has been helpful for trying to rebuild my score.
– My primary credit card still won’t increase my limit. This continues to annoy me since these were the people that once allowed me to have a credit line of $28,000 when I was making a $31,000 annual salary. I’d cancel the card out of spite but they are the longest open account on my record and I don’t want to lose that length of credit history variable on my credit score.
– Our home had an 80/20 mortgage and one company owned the 80 part and another owned the 20 portion. I pulled my credit report this morning (as I do every year) and discovered that the company that owned the 20% still has the account listed as open. I probably should have been pulling my report every quarter in the aftermath of the foreclosure so I realized this sooner, but I didn’t think about it since we were moving along just fine. I’ve now filed disputes with all three of the credit agencies and we’ll see if we can get them to correct the status.
– I’d like to buy a house again someday though I think, for a variety of reasons of which the foreclosure is just one, I don’t think that will be anytime in the next five years. I don’t know how much the foreclosure will effect that decision, financially or emotionally. I suspect Mr. Monkey and I will be a bit more gun-shy on the whole process and might even wait until we can buy a house out right with cash. As much as I don’t regret the decision, I don’t ever want to be in that “no good choices” place again with an underwater house.
– I do wonder how long it will take to get back into the “good credit” range and whether or not I’ll ever have an 800+ score again. I’d like to, of course, but am realizing more and more that it doesn’t matter as much as I thought it did, as long as we keep our debt low and our savings stable.
The bottom line continues to be, thankfully, that there very much is financial life after foreclosure.