Renting an apartment before/after BK?

[magickgoddes]

Hi everyone,

My situation is this: I'm getting ready to file BK in a month or two. I've been in talks with my lawyer, gathering papers, etc... I'm just barely in the Chapter 7 means test, but I'm fine. The reason I'm filing is because I had 5 investment properties in FL that went under & are being foreclosed on. I also have about 25k in CC debt. Anyways, what I'm wondering is this... I live & work in NYC. I have a decent job & a good rental history (never late & all that) but I'm currently living in Brooklyn and commuting an hour to work. I really want to move soon to be closer to work, but my worry is that I won't be able to find a place in my budget that will accept me. What I'm mainly wondering is this: is it better to move BEFORE the bankruptcy is filed/discharged or better to move after? The reason I'm wondering is because BEFORE the bankruptcy is discharged, landlords can see all my debt and a) it's understandable in this market & economy that I have investment properties that didnt work out but b) I also have a lot of CC debt... but it's still not a "bankruptcy" on my credit so I'm not sure... I mean, bankruptcy's a clean slate which is great, right? But maybe not from a landlord's POV. Landlords tend to be VERY strict in NYC to the point of demanding good credit, 40x income, references... *sigh*. I don't know what to do. Any Advice/experience with this?

Thanks,
Irina

[magickgoddes]

Renting an apartment before/after BK?

Hi everyone,

My situation is this: I'm getting ready to file BK in a month or two. I've been in talks with my lawyer, gathering papers, etc... I'm just barely in the Chapter 7 means test, but I'm fine. The reason I'm filing is because I had 5 investment properties in FL that went under & are being foreclosed on. I also have about 25k in CC debt. Anyways, what I'm wondering is this... I live & work in NYC. I have a decent job & a good rental history (never late & all that) but I'm currently living in Brooklyn and commuting an hour to work. I really want to move soon to be closer to work, but my worry is that I won't be able to find a place in my budget that will accept me. What I'm mainly wondering is this: is it better to move BEFORE the bankruptcy is filed/discharged or better to move after? The reason I'm wondering is because BEFORE the bankruptcy is discharged, landlords can see all my debt and a) it's understandable in this market & economy that I have investment properties that didnt work out but b) I also have a lot of CC debt... but it's still not a "bankruptcy" on my credit so I'm not sure... I mean, bankruptcy's a clean slate which is great, right? But maybe not from a landlord's POV. Landlords tend to be VERY strict in NYC to the point of demanding good credit, 40x income, references... *sigh*. I don't know what to do. Any Advice/experience with this?

Thanks,
Irina

[leena]

I am a Minnesota Property Manager, and each region is different but my advice would be this:

To my understanding, credit is a much greater factor in renting in NY because the laws there seriously protect the renter. Here, I can get an eviction for a resident who is 18 days past due, not so at all in NY, from what I hear.

I would try to find a place prior to the BK, because the BK will be a devastating hit to your credit at least for now, more so than large debts. However, if you have judgements and serious late payments, you may be better off waiting until after the BK, because some landlords even out there on the east coast may look at that a little like I myself do in some cases which is "great! you are gonna get garnished and not be able to pay rent!", whereas a recent BK does not have that issue.

Best wishes, and one more thing: be upfront with your prospective landlord! Tell them you have issues before they run a credit check. We run a lot of those for residents, and it seriously helps to know the story before you get the report. We weigh rental history a lot more heavily here than credit, particularly since many and even most MN renters have lousy credit (home ownership is huge here) and the economy stinks. Wherever you are though, what we want most is someone who pays rent, keeps the place clean, sticks to lease terms. If you have good rental references and make a good impression, I bet you can work with your credit issues.

I would be super interested myself to hear from some New Yorkers on this, particularly management people!

[backtoschool]

Renting in nyc in your situation is going to require a co-signer.

It will be worse after you file, so start looking now.

Credit and salary are always a factor in renting in nyc.

[OhioFiler]

Come to Ohio. We accept everyone unconditionally!

[backtoschool]

I answered in the other post. Here is the link:

http://www.bkforum.com/showthread.php?t=47216

[frogger]

Come to Ohio. We accept everyone unconditionally!

We've got some in GA that we should ship up there.....

[OhioFiler]

I answered in the other post. Here is the link:

http://www.bkforum.com/showthread.php?t=47216

Okay...this seems to be a circular link!

[backtoschool]

Okay...this seems to be a circular link!

The mods combined threads.

[leena]

Renting in nyc in your situation is going to require a co-signer.

It will be worse after you file, so start looking now.

Credit and salary are always a factor in renting in nyc.

It sounded like the salary factor in this situation was ok, but if the forclosures are already on the credit report now, yes there is a problem I would think. Forclosure use to be a problem for people trying to rent even here (because it showed you had defaulted on your sacred housing payment) but since the crash (which hit MN pretty hard) that has changed some.

[backtoschool]

It sounded like the salary factor in this situation was ok, but if the forclosures are already on the credit report now, yes there is a problem I would think. Forclosure use to be a problem for people trying to rent even here (because it showed you had defaulted on your sacred housing payment) but since the crash (which hit MN pretty hard) that has changed some.

If the OP lives an hour away from work, that means that the she (I think the OP said she was a she ) is currently living in an apartment that costs much less than an apartment closer to the city. The average nyc rent is over $3000 a month (I paid $4000 a month for my apt in nyc. ) For a $3000/month apartment, the landlord will expect her to make well over $120k a year in guaranteed, provable income to get the apartment. (the formula is yearly salary = 40 times monthly rent) So I am not even sure the OP meets the income requirement. In addition to the income requirement, provable references, a provable bank account balance, and a clean credit history will also be needed. Renters who don't meet this criteria either live far away from the city where the requirements are not as stringent, or they get a co-signer who meets the requirements and is willing to sign for the entire lease up-front. (ie, they will be responsible for the entire lease amount in case of default)

[leena]

If the OP lives an hour away from work, that means that the she (I think the OP said she was a she ) is currently living in an apartment that costs much less than an apartment closer to the city. The average nyc rent is over $3000 a month (I paid $4000 a month for my apt in nyc. ) For a $3000/month apartment, the landlord will expect her to make well over $120k a year in guaranteed, provable income to get the apartment. (the formula is yearly salary = 40 times monthly rent) So I am not even sure the OP meets the income requirement. In addition to the income requirement, provable references, a provable bank account balance, and a clean credit history will also be needed. Renters who don't meet this criteria either live far away from the city where the requirements are not as stringent, or they get a co-signer who meets the requirements and is willing to sign for the entire lease up-front. (ie, they will be responsible for the entire lease amount in case of default)

4X the amount of the rent is strict. We ask for 2-3 times the amount usually. Also, no one gives a rip about bank balances. I feel for NYC renters (and I know almost everyone is a renter). In addition to horrid rents, they are faced with ridiculous requirements to rent. The co-signer thing is something I would never personally opt to deal with as a Manager. The one property I worked that accepted co-signers had nothing but trouble in getting people to pay when the renter defaulted. Housing court judges were not sympathetic either with what amounted to trying to stick a third party with someone eles's rent-(even if they had signed out of a friend or relatives pleadings of their own free will).

[backtoschool]

4X the amount of the rent is strict. We ask for 2-3 times the amount usually. Also, no one gives a rip about bank balances. I feel for NYC renters (and I know almost everyone is a renter). In addition to horrid rents, they are faced with ridiculous requirements to rent. The co-signer thing is something I would never personally opt to deal with as a Manager. The one property I worked that accepted co-signers had nothing but trouble in getting people to pay when the renter defaulted. Housing court judges were not sympathetic either with what amounted to trying to stick a third party with someone eles's rent-(even if they had signed out of a friend or relatives pleadings of their own free will).

Co-signing is quite common in nyc, especially with younger renters in their 20's starting their first post-college job. Usually the landlords require that the cosigner be a parent or other close family member, to avoid having to sue them for the defaulted lease amount if the renter defaults (the thought is that parents will pay their wayward children's past due rent. )

Housing court sides with the landlords in nyc regarding defaulted leases. Tenants have rights in nyc but not in regards to leasing requirements. When I signed my lease, I had to show my bank balance going back several months, my credit report, proof of income, job references, and rental references. None of those documents were negotiable.

[aaj67]

Here is a suggestion:

There are internet sites that would help you find an apartment community that will accept people with bad credit or bankruptcy.

Google:

Apartment accept Bankruptcy "bad credit"

[backtoschool]

Here is a suggestion:

There are internet sites that would help you find an apartment community that will accept people with bad credit or bankruptcy.

Google:

Apartment accept Bankruptcy "bad credit"

The apartments one would get in nyc by googling that phrase will have the OP being a roommate with the rats