Renting after BK

[BKINVA]

How difficult is it to find a home to rent after BK? Your suggestions and/or story is appreciated.

[Flamingo]

I have a good friend who's daughter is a real estate agent and a good one. It may be hard for someone just out of BK to rent a house/apartment since there are a lot of folks who have foreclosed and are looking for that option and the market is overloaded with folks trying to rent. The best thing to do is contact a reputable real estate agent in your area and go through your options as to possibly renting a house in your area. They are experienced in situations such as this and can guide you accordingly. It may be tough and then it may be easy for you - you won't know until you actually get out there.

[StartingOver08]

I am a realtor, and have been for 30 years. You can rent right out of BK - even during the process. The key is to make sure your agent knows so we can negotiate accordingly. There are some places (and some individual owners) that absolutly will not accept bankruptcy's and naturally, those places we would not show. However, for the most part, most owners in today's market are understanding of the general economic conditions. What the owner wants to know is do you have your income worked out so the rent is on time? And natually they want a tenant that will take care of their place.

Some individual owners want extra month's up front, but typically that can be removed as a requirement, depending upon the owner. Most prefer first, last and security, but even then some will accept a payment plan on the last month's rent.

[BKINVA]

Thank you so much! It's nice to hear there's a bit of hope that I can put a roof over my head. I'm still living with my BF and until the BK is in place (CH13) I won't know what I am allowed to spend on rent. Thanks again

[BKParalegal]

To answer your question about how much you are allowed to spend on rent, the answer is however much is reasonably necessary. There isn't a dollar cap on that, because rental markets vary by state, city, neighborhood.

Good Luck

[HHM]

Renting is easy out of BK...I am honestly always surprised how worried people get over this...but I suppose that is what this forum is for, to fight the misinformation.

If landlords didn't rent to the credit challenged, they would have over a 50% vacancy rate . When property managers view your credit report, the FIRST thing they look at it is the public records section to see if you have an eviction. If there is no eviction, you are pretty much going to be approved if you can reasonably afford the payment.

As for the rental payment amount, I would say no more than 25% of your gross monthly income.

[BKINVA]

There are less expensive rentals further from work but then I double my fuel costs, incur tolls at the tune of $6.00 per day and wear and tear on my already aging vehicle. If I find a place closer to work, the rent is about $300 higher but I then reduce $ for gas, no tolls and my little car will last me a lot longer...will the trustee take this into consideration? I will live with my BF until I see what CH13 leaves me for living $$.

[shabam]

The irony is that those out of ch 7 are probably the safest people to rent to as they cannot file again for another years. I am sure not too many landlords realize this.

[hereforinfo]

The irony is that those out of ch 7 are probably the safest people to rent to as they cannot file again for another years. I am sure not too many landlords realize this.

Doesn't matter, because someone with bad credit is more likely to default on rent than someone with great credit, regardless. Even if they can't file bk again, the chances of collecting the money are still pretty low.

But I'm sure there are plenty of landlords who are desperate to rent their property and will make exceptions for you, especially if you can put up a good deposit.

[flower04]

I have a good friend who is renting and she said only 1/2 of the places she looked at (single family homes) asked for any kind of credit information. The owners of the home are considering a lease to buy option for her now because they are taking such good care of it and the owners live out of state.
I realize this might not be the case, but she looked at over 15 properties in the suburbs of a big city.

[Flamingo]

I have a good friend who is renting and she said only 1/2 of the places she looked at (single family homes) asked for any kind of credit information. The owners of the home are considering a lease to buy option for her now because they are taking such good care of it and the owners live out of state.
I realize this might not be the case, but she looked at over 15 properties in the suburbs of a big city.

I think it is a catch as catch can situation and you just have to go out there and see if anything is available that you will qualify for and get by with a BK on your credit records. Some folks are desperate to rent now especially if they have two homes and are having a hard time making that second mortgage payment and want to hold onto the home or just cannot sell the home. They may not care about a past credit history and just want the place rented out if the renter(s) have enough income to cover the rent and utilities. Other owners may be extremely picky. You just don't know sometimes until you try...

[BKINVA]

Thank you for your input - I really appreciate it. You are right, I won't know until I get out there and try. And I will do it until I find a new home.