When you buy a home, you don’t plan on losing it through foreclosure or having to sell your home through a short sale. Ending your home ownership experience this way is emotionally painful, plus hard on your credit. On a positive note, though, you have a chance to start fresh to rebuild your life. There are several major challenges presented by foreclosure. Dealing with a sense of loss. Losing your home can lead to a feeling of failure and cause stresses in your family. You may feel that life is out of control, especially if you stay until the sheriff comes to evict you. A housing counselor may be able to help through some of feelings, while helping you forge a concrete plan for your future. Finding a new place to live. You may qualify for relocation assistance to help you put a deposit on a new place or pay for some moving expenses, but without help, relocating can be costly. Some landlords may be reluctant to rent to you after foreclosure or may want a larger security deposit. Depending on were you live, the rent may not be much less than the mortgage, although your overall expenses will probably be less. Owing a balance and taxes. If you default on your mortgage, and your home is sold for less than the mortgage balance, your lender can come after you for the remaining balance in many states. Even if you win that battle, the IRS might send you a 1099c…