Letting the house go....

[TheBrokeCouple]

I wanted to let you all know that we bought a van last week.

Actually...we were pillaged and plundered at the dealership...17% interest..but it did lower our monthly payment $120/month on another van. This van has 20000 miles less than our other van that we were $10,000 upside down on. Not too shabby. I figure we can refinance in a couple of years.

Now, to the title of my posting...

We have decided to let our house go back to the bank. We owe $82,000..it is not worth that much and would likely need another $30k + in improvements just to make it ready for sale. Needs kitchen, 2 baths, driveway, flooring..etc.

Putting the emotion aside, we have decided it is the best business decision we could make. We figure we will take our $5k tax refund and use that to move, instead of a new roof for our money pit.

Question is...has anyone had trouble renting somewhere when your credit score is in the crapper? We have found some apartment complexes that have 3 bedrooms...but we are worried about the credit check. We are not behind on our mortgage and COULD stay here..just with the housing decline, we figure now is the time to get out from under the debt, rather than hang on and be here FOREVER!!

I would think that even a private landlord would run a credit check on a renter...we're worried, as we are looking to file in the next 4-6 weeks...once our refund is in hand and spent on those neccesities.

Any suggestions?

Thanks...you guys are awesome!
TheBrokeCouple

[One Half Full]

Try it in advance(?) Tell him or her what he will find. Tell him why. Offer a bigger deposit. I am also thinking of letting my house go. I have pets as well and am really worried that we will not find a place. I make next to nothing in this town and am virtually trapped by the house. The house is the difference between being stuck and getting somewhere.

I was fairly open w/ my BK. I actually started to ask small merchants who may have had apartments above their stores for info. I went down-town. I went to the places where the small Markets were. I went for the places where people wanted their rent in "Cash." I wanted landlords who didn't care if I had 2 dogs, 2 cats.

My house was also overvalued and it is a POC!!! It is falling apart. The people who sold it were criminals who hid all the defects. Even 2 years in a trailer park is better than being taken for every cent you have.

There is no crime in being open about it. Many people will forgive you if you dont try to hide it. Maybe many will not, but dont deal with them. Pass the experience on when you can.

[FreshLikeADaisy]

Ditto to what Half said, with emphasis on private landlords. Large commercial complexes are the ones who will carefully examine your credit, not the mom and pop ones. But there are so many foreclosures and whatnot right now that you should have no trouble getting into a rental somewhere. Good luck!!!

[kl030505]

we are also letting our house go, and I haven't secured a rental yet. My plan is to be up front, try working with private owners who will be more sympathetic, and offer a double deposit to show good faith. My plan B is to have my sister co-sign for the lease. I'd prefer not to do that, but will if I have to.

I figure, there are an awful lot of homes in foreclosure right now and all those people have to go SOMEWHERE, right? SOMEONE must be renting to them!

I'm just going to be honest and tell them that we had to file due to long term unemployment, but that we are both currently employed with solid companies (both of which they will recognize) and have both been employed in our current positions for at least 6 months (by the time we go looking for a rental). I'm nervous, but I have faith it will work out.

And FWIW, I'm so relieved to let the house go. A year ago, when we started this process we wanted to hang on to it for dear life, and now, the prospect of letting it go makes me almost giddy with relief