I just want to lease...

[Confused33]

I filed CH7 back in 12/08 and was completely discharged in 4/09. I'm married and my wife was not involved. We had a house and leased it out until 8/2010 and then had to do a short sale to get out from underneath it quickly enough to avoid foreclosure. It reports as IIB on only my report.

I had been with a company for 2 years and during that time started an online based business that became successful very quickly. I terminated my employment and went full time on my own in January of 2011.

Since filing I have only accepted a Capital One card and have maintained good history with it and received a business card backed by my social as well. I have zero debt in my name and it is reflected on my bureau. My score is a 640 something.

My wife has good credit, some old funky stuff, but she should be around a 670 - 680. Only problem is both of our cars are in her name but they only total $736 for both payments. We have huge equity on both of them and they are necessary for the business and advertising. (auto accessory business)

The problem is in my neck of the woods (Austin TX) rentals are going like CRAZY. You almost have to put an application in and then go see the property to get in line. Properties are flying off the shelf. LOL

We don't qualify to buy because I don't have 2 years of self employed tax returns and my wife's income doesn't qualify her alone for a mortgage. It doesn't matter if I make $1.00 or $50K a month, they won't count my income. Doesn't make a lot of sense...I'm less likely to fire myself than a company/employer is and I make way more than I did with a "job".

Bah.

So anyhow...how hard is it to get a lease approved? We've been passed over for a "stronger" applicant twice now. I'm getting frustrated because I've given bank statements showing over $20K on deposit, a letter of explanation, we have decent credit scores, and my wife has a full time job that pays her well enough for what we are looking for. We are clean cut folks who want to take care of a nice house in a good neighborhood and pay someone more money than we should. Ha ha!

What are you guys experiencing?

Thanks!

Confused

[Pandora]

I think the issue is that you arent showing a steady income being self-employed. While you are in the same "field" of work, you are now self-employed and must be able to show income, on average, for 1 year to actually count. They may not consider it steady employment since you've only been doing for 4 months; another issue may be that for many - in order for a business to be considered "successful" and in the black, it takes about 5 years to do so.

Keep looking, you'll find someone that will rent to you; are you looking at classifieds (as in "By Owner") or are you going through a realty company? That also makes a difference sometimes.

[Logan]

You could always offer to put twice as much down as a deposit and then use that extra as your 12th month rent. Or offer to pay 6 months up front.

good luck

[Confused33]

Thanks for your input. We'll have a verdict tomorrow on the house we are hoping to lease.

There are four other applications so I'm doubtful. These are interesting times we live in. I wish I had some rental properties! LOL

[dspii]

One product of the financial crisis we have all felt, is rental rates and available properties are at a premium. With so many families losing their homes, investors are buying your old home for pennies on the dollar, doing a little rehab and then renting it out until the housing market returns. In many cities rental rates are outpacing mortgage payments....which in a normal market won't last long, the renters see its cheaper to buy a house. But our current crisis is different...we'll have to wait and see what happens.

In your case, look at the for sale by owners and see if any are willing to do a lease option. This worked for me in Nevada, but the Nevada market is truly in the sewer, nothing is selling except foreclosures and short sales.

[researchnerd]

The problem is in my neck of the woods (Austin TX) rentals are going like CRAZY. You almost have to put an application in and then go see the property to get in line. Properties are flying off the shelf. LOL

This is the case in increasing numbers of cities these days - just read this article the other day: Affordable rental homes hard to find. However, I live in a rural area about 30 miles north of the city, where rentals are still plentiful and inexpensive. Would living a little distance away from the city work for you?