How hard to rent after BK?

[coolmom04]

I just realized yesterday that we had intended on keeping the house and keeping the cars and thought those would help reestablish our credit post-BK. Well, now we know we cannot reaffirm the mtg and are going to let both cars go.... which means no way to reestablish our credit! I absolutely REFUSE to ever have another credit card.

So, since we're not reaffirming the mtg but are going to continue paying and they can essentially foreclose on us at some point if they decide they can make more money on the house and we are stuck with having to rent a house, how difficult will it be?

Has anyone successfully rented a home after BK? Did you just put down a good security deposit or something?

[JEM]

I just realized yesterday that we had intended on keeping the house and keeping the cars and thought those would help reestablish our credit post-BK. Well, now we know we cannot reaffirm the mtg and are going to let both cars go.... which means no way to reestablish our credit! I absolutely REFUSE to ever have another credit card.

So, since we're not reaffirming the mtg but are going to continue paying and they can essentially foreclose on us at some point if they decide they can make more money on the house and we are stuck with having to rent a house, how difficult will it be?

Has anyone successfully rented a home after BK? Did you just put down a good security deposit or something?

What changed your mind? Were you told you couldn't reaffirm?

[coolmom04]

Well, we just found out this week that WF doesn't do reaffirmations and then we just found out yesterday how much my mom's health insurance is going to cost, which we'll need to pay with one of the car payments. Another poster suggested I look into short-term health insurance and I did that, but the only coverage they have locally apparently is for 3 months and they're the same price as the long term coverage that I found (around $250 for the coverage she wants/needs), but that's certainly a LOT better than $346! Still, we'll need to let one vehicle go.. still up in the air about the second. I think we'll most likely let the 2nd go just to make sure we actually have some money for emergencies b/c if we don't, we'll still be living paycheck to paycheck - even without credit card payments And then there's the fact that my mom's vehicle is currently being paid by her soon to be ex and I don't think he'll continue paying after she files, so then we'll also be paying her $150/month van payment and her car insurance.\

Oh, another reason we wouldn't reaffirm the mtg now even if we could.. we are in a new subdivision and the building pretty much came to a complete halt about a month ago. Houses that were being built haven't been touched and lumber has been delivered and sitting on lots for almost 2 months! We found out Thursday that the builder has filed BK and doesn't know what they're going to do with their business... so we figure we're probably better off if we have the option to walk away later just in case this neighborhood goes way downhill. They had already started drastically dropping the prices of the homes around me just to get people in here.

[HHM]

I think you are overestimating the risk of foreclosure. In most states, a reaffirmation agreement is NOT necessary.

Don't worry about your credit, it will recover on it's own. The biggest mistake in BK is to reaffirm a debt just to recover credit.

As for renting, you WILL NOT have a problem. If landlords did not rent to people with troubled credit, they would have 40%+ vacancy rates. When landlords review credit for renting, they are really looking for prior evictions and collection accounts for utilities. You will not have a problem.

[coolmom04]

Thanks HHM I guess I just want to make sure I'm mentally prepared for any possibilities with the house down the road...

[Mensa1]

You may find certain LL's that may not rent to you with Bk and/or foreclosures, but usually larger companies that own and professionally manage their units. There are always individual owners that will consider you, just as HHM said, looking for evictions and util judgments, etc. I would suggest that when you look for a rental that one of the first couple of questions you ask is, "Do you accept Tenants with a recent Bk discharge?" If they say NO, then you call the next one. I wouldn't spend time looking at any property until you get a YES answer to that question. LL's will appreciate you being upfront about the subject and most/all are going to find out eventually if they do any type of screening process. GL

[sofarsogood2]

We once rented to a couple that had been through a BK due to medical issues. Never had a problem with them paying on time. Our realtor at the time did verify their employment and banking accounts. I believe we had them pay 2 mos. security up font, but that was it. They were great tenants.

As long as you make your payments on your mtg. on time, taxes are paid and insurance is up to date, you are protecting the lein and should have no problems. We are doing that now. We were discharged recently and just got the first bill in the mail like we used to before the filing. Like you, we want to keep our options open. You never know- job transfer or loss, need to move near an ailing parent or help an adult child, or just decide the neighborhood isn't worth it anymore.

Best wishes!

[espo1357]

it is silly to worry about not being able to rent. so, what are we going to have, all people that filed for BK, living on the streets?

come on people, don't worry so much about nonsense.

[Pizza]

it is silly to worry about not being able to rent. so, what are we going to have, all people that filed for BK, living on the streets?

come on people, don't worry so much about nonsense.

It's not silly to prepare for such a serious circumstance, but some of the fears are overblown, especially if the person defaulting on a house was used to the typical corporate-owned apartment complexes before the purchase.

Renting from a private landlord is the best idea. No one wants their property to remain vacant, and in many cases a first-month and last-month payment up front will be sufficient, especially if past rental history was good. I've known many people able to rent after losing a home without major problems.

[Mensa1]

it is silly to worry about not being able to rent. so, what are we going to have, all people that filed for BK, living on the streets?

come on people, don't worry so much about nonsense.

Easy for you to say espo, because you know the answer.

The reason it is being addressed is because the OP has a concern and she doesn't know the answer; hence the question. If one is concerned about BEING ON THE STREET then it is certainly a legitimate question. And yes, I have seen many folks be refused the ability to rent an apt or home based on a Bk or foreclosure. Fortunately not every LL will do so, and more out of necessity than by choice. If every LL could get an A+ credit risk, as used to be more the norm in years past, then maybe ANY and EVERY person that has filed for BK would be on the streets. But we know that isn't the case.

[WhatMoney]

A problem in my area, at least for the nicer apartments (and most of them are condos or apts and are nice) is the requirement that your verified income be at least 3 times the rent. That makes renting tough for a retiree living on only social security, since rents are typically in the $900 and up range.

A couldn't get my retired parents into some corporate-run complexes for just that reason, even though they never had any credit problems or even any debt (FICO 780) and perfect renting records for 25 years.

[espo1357]

You have to get creative people. Find someone at your church. Network. Maybe I take my street smarts and assertiveness for granted because I know that regardless of the BK and lowest fico on the west coast, I will be able to rent anywhere.

good luck folks. Don't let the idea that BK will hurt your chances of renting get the best of you, because that idea is very silly. In fact, I would argue that the owners of these rentals don't have enough renters.

[ryan]

...couldn't get my retired parents into some corporate-run complexes for just that reason, even though they never had any credit problems or even any debt (FICO 780) and perfect renting records for 25 years.

Just wondered WhatMoney, did you ever try to get your parents accepted into a '55 and over' apartment community? They seem to have less rigid requirements especially when the applicants income is guaranteed by the Gov as SS is.

[Mensa1]

Just wondered WhatMoney, did you ever try to get your parents accepted into a '55 and over' apartment community? They seem to have less rigid requirements especially when the applicants income is guaranteed by the Gov as SS is.

good point ryan.............. plus often times there are slightly subsidizd programs or communities that are just as nice as mkt rent communities and if a retired fixed income person is making 1200 per mo they might get their place at 350, compared to someone who is making more $$$ might pay 550 or 600 for the same thing.

These programs exist because the property owner qualified and obtained special low rate financing, guaranteed and subsidized by a branch of the gov't. In exchange for that sweetheart deal they must have a certain % of subsidized, below mkt renters. In that case the parents get a deal that doesn't break the bank and most of those communities are nice too; not what one might think if they haven't seen one.

Maybe this has strayed away from the OP. If so I apologize.

[coolmom04]

Maybe this has strayed away from the OP. If so I apologize.

It's ok I got the info I needed.