Renting After BK

[novayalife]

hello,

It seems like in my state most property management companies as well as private home owners are checking credit prior to renting out. I am very concerned because we will soon lose our house in bk and will need to rent. Does anyone have any suggestions? We have owned our home for more than 5 years and had good credit up until now. Please Advise!!!

[BK2008]

When you are hunting, just be honest and tell them the circumstances. I was honest about my BK, my credit. I wrote a letter to the landlord, explaining the situation along with my application. I got approved on my first try. DON'T let them run credit until you're absolutely ready to go, all the hits on your credit affect your score, especially if they're spread out over a period of time.

Most place have seen that, done that, and know there are many people out there in this boat, and everyone needs a place to live. As long as there are no other rents that were in the BK, you should be good to go.

[justbroke]

Yes. Use CraigsList.

Don't go through management companies or real estate agencies. You may have to avoid apartment complexes as well. I know that there are apartment complexes throughout Florida currently advertising that they don't care what your credit report reads (No Credit Check). They just want money right now.

As a (former) home owner, it's much more appealing to rent from another homeowner as you will understand their concerns. I did such a thing, temporarily, when I moved out of my residence into a rental home. The homeowner ran a credit check, but only as a "background" check. He asked about my 2 homes and why I had very derogatory items on my credit report. i told him the truth. He said he didn't care, but was curious.

He told me that my 10 years at my employer, and very high income was all he needed to know. Be really up front and honest. Your honesty and stable income and job will be your key.

Good luck. Trust me, there are many investment rental property owners out there who are dying to have any stable person (with a job) move in.

WARNING: beware of the owners who are in Bankruptcy or Foreclosure themselves. Beware of owners asking for large deposits -- as this is sometimes an indication that they are trying to cure a default on their mortgage. Always check the county court public records to see if the home is in active foreclosure. I fell in love with this house on CraigsList that was gorgeous. In a new development. On 1/2 acre. On a golf course. Over 3,500 square feet. In a really nice part of town. They wanted $1,500/month. I knew something was wrong. I looked up the home on Zillow and it showed that it was over $1M!!! So, I pried the owner and he told me that it was in foreclosure and I could enjoy a $1M home for only $1,500 until the bank took it back. He figured i could enjoy it for "up to" 6 months. No need to tell you that I didn't take his offer. So be careful!

[Recessionist]

With the current crisis being what it is, more landlords will have to rent to the financially distressed as they will not find enough renters otherwise. I have rented with "bad" credit, and I think many landlords just want to see you've had no evictions, and property related issues. I do believe it will get better for us.