Renting After Foreclosure

By Melanie Ullman
For many people, what happens after foreclosure can be very scary. It may seem like having to consider rebuild your life, which is a daunting task. Some aspects such as regaining financial security will take time. Others however cannot wait. Adequate shelter is one of the basic human needs.

Questions such as how does foreclosure work, and what are your homeowner rights on a foreclosure can seem overwhelming. Many people who lose their homes and their good credit to foreclosure wonder how and where they will live. They wonder if they will be able to obtain adequate housing after failing to pay their mortgage on time. Despite all of this there are rental options for people who have gone through a foreclosure. With a little diligence and patience even individuals who have survived foreclosure can rent a property.

The first step to renting after a foreclosure is to understand that there are some properties that will not approve you for rental so it is best to avoid them altogether. Nowadays many apartment complexes and condominiums do perform credit checks and they do have certain requirements. In almost all cases a foreclosure and poor credit will make you ineligible to rent from many property management companies. If someone is willing to be a guarantor or a co-signer for an apartment it is more likely that you will be able to obtain an apartment. But in any case, if you want to obtain a property on your own it is best to seek out apartment houses or properties owned by a sole landlord. He or she may be more willing to work with you given your situation.

Another step to take to successfully rent after foreclosure is to be willing to provide a large sum as a rental deposit. Foreclosure and bad credit make you an obvious rental risk. Be honest about your situation and provide financial documents that prove that you are working and have the means to pay rent each month. Usually landlords will ask you for additional deposits because of the foreclosure so before you go looking it is best to save up at least three months of rent which can be equated to the first and last month’s rent and the security deposit. If you are able to live with a relative and save money for a new place this is a good option. This way you can save a considerable amount of money and have the funds in hand to prove that even though you have gone through a foreclosure you are able to provide funds for a new rental.

Finally, pay your bills on time. Paying bills on time throughout a foreclosure and after a foreclosure will assist you in renting an apartment or home for your family. If a landlord does decide to pull your credit report it is better for him or her to see one big blemish such as a foreclosure and many current accounts than to see a credit report that reflects a pattern of financial irresponsibility. Try your best to keep your other bills current even if you are going through a foreclosure. A record of timely or untimely payments can make or break a landlord’s decision to rent to you.

Finding a new place to call home after a foreclosure can seem like a very daunting experience. However, even those with a foreclosure and poor credit can find a home with a little flexibility and diligence.

This entry was posted on Friday, September 18th, 2009 at 8:24 pm and is filed under Homeowner Rights on a Foreclosure, How Does Foreclosure Work, What Happens After Foreclosure. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.