Whether you’ve foreclosed or opted for a short sale, your credit report can show a poor score of as low as 380. “This is a very humbling thing, when people are foreclosed on,” says financial expert Ilyce R. Glick. “You failed at something very major and it’s going to require a healing process.” For the 5.5 million homes that are expected to foreclose, many Americans worry about how they’ll find a new place to live or ever buy a house again. They wonder how they’ll pay their taxes, regain a reasonable financial plan or start their lives over again. However, don’t feel like there is no hope, as you can steadily improve your credit score over the next few years by taking a few measured steps.

First of all, you’ll have to face the long-term repercussions and navigate the waves of your poor decision if the foreclosure is already on your record. The next five years could be problematic and you may be turned down for lines of credit, a car loan or a personal loan. To get the best interest rate on a 30-year fixed mortgage, banks will require you to put 20% down and have a credit score of 740 or higher, although some banks may settle for 620 with 10% down. To get back on track with clear credit, pull your credit report at www.AnnualCreditReport.com to see where else you may need repairs.

So which is worse for your credit score, a foreclosure or a bankruptcy? Even though bankruptcy stays on your credit for 10 years and a foreclosure for 7, “a foreclosure is very serious to mortgage lenders,” said Ray Hooper, Education and Housing Director for the Consumer Credit Counseling Service. “They’re going look at a foreclosure more seriously than they will a bankruptcy that doesn’t include the house.” Hooper says if you’re receiving default notices but still want to keep your house, then you’ll need to catch up on those missed payments.

You can modify the agreement to a lower interest loan or ask for forbearance, which involves the lender agreeing to suspend payments until you get back on your feet. If you outspent yourself and wound up in a real pickle, then you can ask the lender to hold off on foreclosing until you sell. In some cases, you might not get the asking price and will still owe money to the lender. This procedure is called a short sale. In other cases, you may negotiate a “deed in lieu of foreclosure,” which means you will give your house back to the bank and walk away with nothing, including clear credit.

If you’ve already faced a foreclosure, then the best thing you can do, aside from paying everything on time, is to raise a fuss. Some homeowners may be able to persuade a lender to remove the negative hit from their credit report. However, this is certainly not easy, and usually involves a legal attorney and a chunk of cash. Otherwise, the foreclosure will come off your report automatically in seven years. You’ll probably have to dispute, threaten, sue and file complaints to get there, but often the bank would rather pay you off with clear credit than endure your barrage of aggravation. It’s an ugly process, but if you’re in a desperate situation or if you previously had a high rating credit score, then you may want to consider the attorney route.