Renting During 13

[maybelater]

We are almost 1 yr into the 13. We are thinking about giving the house back because it needs so many repairs (new septic, new water pipes in house, and more) and because if we moved closer to town it would save gas $$.

I talked to one rental place that said they would not rent to someone in bankruptcy until the BK was discharged. Well, for a 13 that is going to be 5 years. I explained to the person that this was a 13 not a 7, but he said it didn't matter.

Is it impossible to find a house to rent during a 13?

[shark66]

Welcome to the forum!

No, it's not impossible to find a rental while in Ch. 13. You'll find many forum members who have gone through the same or similar situation as you, and ended up renting a place successfully...

That being said, look for a private owner and not a management company, don't speak of BK unless asked about it - in which case you should be honest by all means - and be prepared to dish out some extra $$$ for LL's security. That should do it.

Good luck.

[AKA]

So you decided not to surrender the house in your 13? Why?

As shark said you will have to put a lot of leg work in and find the right people. Start with asking family and friends and see if they know anyone with a place to rent.

[helpme2010]

I will be in a similar boat as you, except I am trying to stay in my house longer, including with a 6 month forbearance loan mod plan. I know it will be a nightmare finding someone to rent to me with a chapter 7 and 13 on my record, and with no job, so I am trying to stay in my house longer, until I find a job and will look more presentable to a renter. I will follow the advice on this board and look for a private renter desperate for a renter like me.

[maybelater]

We kept the house. The payment is included in our trustee payment. It is just all the the major repairs that are a problem. The mortgage company refused to help us with the failing septic. We were out of the house for 4 days last year when the septic backed up into the house. Water pipes are corroding and falling apart making pinhole leaks too common.

Septic is a $10-20K job. Would prefer to stay and do the repairs, but feeling very trapped.

[olivies]

Plenty of people in a bankruptcy rent, including us. You'll have better luck with an owner/landlord vs a management company.

As for the house, yikes. That sounds like a good amount of repair. I wonder, can you get an estimate for all the repairs and ask for a plan modification from the trustee?

[maybelater]

As for the house, yikes. That sounds like a good amount of repair. I wonder, can you get an estimate for all the repairs and ask for a plan modification from the trustee?

The atty did say we could probably put off payments for a while, but it would still take 7 months and in the meantime nothing would get paid (including mortgage since it is included in our trustee payment). I assume that would add 7 months. I would like to just leave well enough alone as far as the BK and not mess changing it. IF we could get a loan for the septic (highly doubtful) the atty said we would have to go to court to get it approved. I just don't want to do that.

[justbroke]

First, Craig's list has many owners that rent directly. Second, beware and do your homework! Vet the owner and do your OWN records search to make sure that a.) they are the actual owner and b.) it is not in foreclosure or in other litigation!!!!! Best thing would be to see if there are any mortgages recorded and valid, or that a mortgage release was issued clearing all property liens! The ones that are owned outright and by "some" real estate agents (who speculated but did well), can be a great find since there is almost no chance of foreclosure.

Do your homework.

Also, I found an apartment where I'm working and they said no rentals for 2 years after bankruptcy. This was through a large national management company. I applied anyhow (when I was 15 days out of Chapter 7), and was approved for not only the apartment (at $1,200/month), a concession of 1/2 month rent and no deposit. Of course my income is extremely high and I did have other "rental" history that reflected that I always paid on time.

[shark66]

We kept the house. It is just all the the major repairs that are a problem. The mortgage company refused to help us with the failing septic. We were out of the house for 4 days last year when the septic backed up into the house. Water pipes are corroding and falling apart making pinhole leaks too common.

Septic is a $10-20K job. Would prefer to stay and do the repairs, but feeling very trapped.

Isn't this something that could possibly be addressed through your homeowner's insurance?

Good luck.

[maybelater]

Isn't this something that could possibly be addressed through your homeowner's insurance?

Good luck.

Unfortunately, septic issues are not covered by homeowners.

[helpme2010]

Have you tried assistance through a major utility company? e.g. I was able to get a brand new back door, weatherstripping, and a refrigerator through Edison and the Gas Company through an assistance program for low income people. You may qualify for some of these low income assistance programs. e.g. If I didn't put in my own water heater, that would have been included as well, plus if my central air was in poor condition, they would have included that, plus they would have put in a new stove/oven if mine weren't in good working condition. You can search these programs through the major utility companies.

[helpme2010]

First, Craig's list has many owners that rent directly. Second, beware and do your homework! Vet the owner and do your OWN records search to make sure that a.) they are the actual owner and b.) it is not in foreclosure or in other litigation!!!!! Best thing would be to see if there are any mortgages recorded and valid, or that a mortgage release was issued clearing all property liens! The ones that are owned outright and by "some" real estate agents (who speculated but did well), can be a great find since there is almost no chance of foreclosure.

Do your homework.

Also, I found an apartment where I'm working and they said no rentals for 2 years after bankruptcy. This was through a large national management company. I applied anyhow (when I was 15 days out of Chapter 7), and was approved for not only the apartment (at $1,200/month), a concession of 1/2 month rent and no deposit. Of course my income is extremely high and I did have other "rental" history that reflected that I always paid on time.

justbroke, thanks, I am pasting this info into a word file I am creating from useful posters like yourself. Do you know how to search if this person is legit through records search or foreclosure? Do I have to pay for a paid service or are those free through government HUD searches, etc.?

[maybelater]

Have you tried assistance through a major utility company? e.g. I was able to get a brand new back door, weatherstripping, and a refrigerator through Edison and the Gas Company through an assistance program for low income people. You may qualify for some of these low income assistance programs. e.g. If I didn't put in my own water heater, that would have been included as well, plus if my central air was in poor condition, they would have included that, plus they would have put in a new stove/oven if mine weren't in good working condition. You can search these programs through the major utility companies.

There is a water quality type agency that provides low cost loans for failing septics, but they have turned us down twice. There is a possibility now that it has backed up into the house they would give us the loan, but I really hate to have to take it to the court and have it approved. No possibilities for the water pipes.

[justbroke]

justbroke, thanks, I am pasting this info into a word file I am creating from useful posters like yourself. Do you know how to search if this person is legit through records search or foreclosure? Do I have to pay for a paid service or are those free through government HUD searches, etc.?

I find out their real name by sending an email asking for more details, and more pictures. (Usuallly though, honest people include their full name in the response e-mail.) Regardless of whether their name is in the e-mail response, I start my research.

In Florida, it's easy since all public records are public and on-line! A quick search of the tax assessors property records would yield the owner's name. I then look up the owner in the County Court "public records" portion to see if there are any "lis pendens" or other ownership issues with the recorded mortgage, title, etc. I then look in the County Court "court records" to see any lawsuits filed against the owner (this is where the "lis pendens" should be shown as an actual Foreclosure lawsuit).

You do this for two reasons. First to make sure it's not a scam, and this is the REAL owner. Second, you do this to confirm that it's not in foreclosure. I almost rented a $1,000,000 home in a section of Orlando near a 5-star resort, that was on the golf course, and over 3,800 square feet. They listed it as $1,500/month. I knew right off the top of my head that it was either a GREAT chance or this home was in foreclosure. It took me some time to get the owner to "confess" that it was in foreclosure, and that I might be able to stay there for a year.

Just be careful!

[Pandora]

There is a water quality type agency that provides low cost loans for failing septics, but they have turned us down twice. There is a possibility now that it has backed up into the house they would give us the loan, but I really hate to have to take it to the court and have it approved. No possibilities for the water pipes.

You need to be very careful here - state and federal regulatory agencies (DOH / DEQ / EPA / DOE) can make you move out of the house or even condemn it due to health concerns. Although its rare, the aquifer may be at risk of contamination due to the failure, which can result in everyone's water getting contaminated, including your own. It happens on occasion however.. (my hubby has worked in water/wastewater for 25 years). You should also find out how it would work if you give your house back in your CH. 13; I know in order to sell / transfer a property, state laws maintain you have to sign off on paperwork stating your septic & plumbing is in working order - so make sure you find out if this would apply to your situation (BK).

Here are a few links to help you. I dont know what county you're located in, but maybe these will help you:

http://apps.leg.wa.gov/WAC/default.aspx?cite=246-272 (regulation)

*not sure which of these you've contacted for assistance*

http://www.ecy.wa.gov/biblio/0110024.html

http://www.ecy.wa.gov/biblio/0610068.html

Shorebank Septic Loan Program
(360) 427-2875
Contact: Terry Hall
Low interest loan program to repair or replace
failing septic systems.

USDA Rural Development
(360) 452-8994, ext. 4
Contact: Trudy Teter ([email protected])
Location: Port Angeles office, 1601 Front St.
Bldg A, Suite B, Port Angeles WA 98362
Financial assistance for qualified applicants

Hope one of these can help you!