Trouble finding rental house due to impending bankruptcy

[ccaplinger]

We are filing for chapter 7. We just finished the pre-filing counseling. I would like to find a rental house before school starts so that if we have to move out of the kids' school district, the kids will start on the first day of school rather than late.

My mother and father taught me honesty so when someone asks where we are living now I tell them we own our house. Then, of course, they ask why are we moving and I tell them we are filing bankruptcy and giving up the house (mostly because we have outgrown it, which I do tell them). I've already had one owner deny our application and another that is questioning (through the property manager) why we aren't selling the house instead including it in the bankruptcy (we owe two mortgages). I personally don't see why that is any of their business. I tried to explain in general terms. I did offer additional references which he accepted.

I just talked to another woman about a rental house tonight who asked so many questions I felt like she was invading my privacy. However, the house she had for rent was the perfect size and in the perfect place so I tried to answer the questions. She finally asked too many questions and I got defensive. She decided she didn't want to rent to me.

In addition, my sister will be living with us, along with her new baby. She is leaving an abusive situation. The above woman didn't really like possibly renting a house to two families even though I assured her my husband and I would be responsible for everything and it wouldn't matter even if she moved out.

For those who gave up their house, how did you find a rental house? I've asked this question before. Some said they knew someone. Others just had good luck.

It's just getting really upsetting to me. I spent 30 minutes on the bed crying after talking to the above woman, luckily no one else was home at the time.

And I am looking at all the rental company web sites regularly, checking the newspaper and Craigslist.

[JRScott]

Perhaps instead of mentioning the bankruptcy tell them that you have found that you tried to buy to much house and cannot afford it. Maybe they'll be more understanding of that situation.

[cool33097]

I had a friend who had the same problem. It took him 2 weeks after working with a realtor for him to find something. Maybe that is what you need. Your realtor will know that you have bk on your record and will only show you properties that he thinks won't have a problem. Just an idea.

[Flamingo]

You mentioned in your first post that you thought the person who was renting the house out was invading your privacy. Note that in today's world/economy, that is the norm for anyone to protect an investment that they own. She has to ensure the person she rents to is who they state to be; otherwise, someone could end up trashing the place, not paying the rent, etc. Put yourself in her shoes; it is no slight to you - she would check out everyone like that.

Cool's suggestion as to contact a realtor is excellent. Contact several in the area in which you want to rent. They will work with you as they are anxious to get any available houses up for rent rented out for the owners because that puts money in their pocket from the rental owner. The more you are honest about your situation with the realtor, the better they can work for you and find you the right place.

[Frogge]

I'm so sorry that you cried You will find something I'm sure of it. I TOTALLY agree also with the suggestion about the realtor. This will help tremendously. I really hope you find a great house soon.

[ccaplinger]

Perhaps instead of mentioning the bankruptcy tell them that you have found that you tried to buy to much house and cannot afford it. Maybe they'll be more understanding of that situation.

The only problem with this is that I will get the same question that I got last night. How can we afford rent on their house if we can't afford our house payment?

[ccaplinger]

I had a friend who had the same problem. It took him 2 weeks after working with a realtor for him to find something. Maybe that is what you need. Your realtor will know that you have bk on your record and will only show you properties that he thinks won't have a problem. Just an idea.

That's not a bad idea. I have at least two or three acquaintances that are real estate agents. I noticed one of them posted an ad on Craigslist advertising to manage rental property. I was thinking of emailing her and see if she has anything.

[BK2008]

The only problem with this is that I will get the same question that I got last night. How can we afford rent on their house if we can't afford our house payment?

Rent is less expensive than owning your own home, after taxes, insurance, hoa fees, maintenance and upkeep.

This they should relate to, no?

[csrhjr31]

I would agree about using a realtor. My husband and I are in the process of moving into our rental home (I like to call it projected purchase home ). We found two houses. One was through a realtor. It was before we filed so our credit was 660. He checked our credit and looked at our past mortgage payments. He said that on time past mortgage payments, plus a steady income is what people are looking for.

We went with a rental house from a family that was selling it/transferring to another state. We originally told them that we are trying to sell our house, and if it doesn't sell, we will be filing bankruptcy. They were VERY empathetic, and allowed us to do a 2 year lease/purchase.


Good Luck! I know how stressful this is, but you will find something!!

[liz417]

Hi there Caplinger,

I'm so sorry that you are going through this, don't cry, just move on to another home. I think your best bet is finding an individual that is renting their home vs. a realtor, I find that realtors and property mgmt companies are too picky. You just haven't found the right landlord yet and remember times are hard and many people are in financial messes for one reason or another and these "landlords" are going to have to "give" a little if they want to rent their properties.
I NEVER thought I would EVER be facing bankruptcy, (as probably many of the posters here), but things happen, and they happen fast...
Hold your head up high and move on to the next house for rent...

Best of Luck to you and your family.

[AngelinaCatHub]

I would agree about using a realtor. My husband and I are in the process of moving into our rental home (I like to call it projected purchase home ). We found two houses. One was through a realtor. It was before we filed so our credit was 660. He checked our credit and looked at our past mortgage payments. He said that on time past mortgage payments, plus a steady income is what people are looking for.

We went with a rental house from a family that was selling it/transferring to another state. We originally told them that we are trying to sell our house, and if it doesn't sell, we will be filing bankruptcy. They were VERY empathetic, and allowed us to do a 2 year lease/purchase.


Good Luck! I know how stressful this is, but you will find something!!

[bmrigs]

Another thing renters need to do is make sure the property they are going to rent is not in the foreclosure process. Owners have been scamming into getting large deposits and then dissappearing. Dont be that kind of victim.

[AngelinaCatHub]

Another thing renters need to do is make sure the property they are going to rent is not in the foreclosure process. Owners have been scamming into getting large deposits and then dissappearing. Dont be that kind of victim.

[MomIcantFindmy]

We found our house to rent on craigs list. It was a private owner and they did not do a credit check and we did not offer any information. We dressed nicely and reminded ourselves that meeting the owners was an interview. We tried to never use 5 words when 3 will do. We just played like a nice couple...(ok really we are)...but you get what I mean.

[CindyLou]

Our first apt out of BK, the landlord didn't even ask. No credit check. They told us they went on gut feelings and have not once been wrong in over 40 years of renting apartments.

Now we just moved this passed week and we are two years out of bk. We leased from Equity Residential...they were very nice about the BK. Said that in the scheme of things, that it didn't really matter much anymore. If it was a disqualifier, then they would be vacant all the time.

I say just keep looking. Give just enough info to explain your situation, but not too much. Maybe something like, we really wanted to sell our home but due to the falling housing prices we are unable to do that. It was apparant that we cannot continue to maintain a home and still keep up with gas and food prices. We decided to rent something that is well within our budget and that we can plan to stay for at least 3-4 years. Then go on to provide them pay stubs, copy of bank statements, anything that you have that will show that you are able to pay on this property. Either they are ok with it or they aren't. If they aren't, then just move on to the next. I know you'll find something!!! You don't happen to live in Socal?