How do you explain foreclosure to prospective landlords?

[sleeplessinohio]

Hello all,

As noted in a question below, we received complaint of foreclosure last week.

We plan to try to fight it and to try to get the mortgage company to work with us, but I guess I have little hope of being successful.

In the meantime, I'm trying to research rental properties. The thing is, everyone wants to know why we're moving. It's a specific question on some of the applications I've seen.

I should be able to come up with some appropriate answer, but I haven't thought of one.

Our BK was discharged nearly two years ago. Our house was IIB. I don't know when/if/how the foreclosure will show up.

But, what do I say now? Why do I say we're moving?

And......... if you're still reading... we've been served the complaint.. I know we have 28 days to answer. But lets say we don't answer, how much longer can we be here?

I think the last day to answer the complaint is August 11. If we do nothing, what happens next and about how long will it take? Do I need to hurry and find a place or do we still have a while?

Thank you all for reading and for responding with any information you might have.

Best wishes to everyone.

sleepless in ohio

[daxtell]

i was scared too when my home was foreclosed on in 2007. the first place (apartment mgt company) i applied too denied me. so for the next 3 years i rented from home owners not management companies; who did not do credit checks. then i tried at another apt mgt company last year and i still had not filed bankruptcy yet and i was approved. i have lived here a year now and have since filed bankruptcy and been discharged in this year.. my lease is about up (a 14 month one) and they asked me to renew but i am trying to find something bigger for less... ha ha.. my son is moving home again after being in the army. so this week i applied to a different mgt company and was approved again 4 years out of foreclosure and less than two months from my discharge of bankruptcy. now i know the market is tough and these last 4 years are the first time i have ever rented in my life so my rental history has been good. maybe that is why. and, in both of these places that approved me, i qualified with their no deposit option which really helped. i think rental companies look at a lot of factors and the most important is your rental history... i.e., no unlawful detainers, evictions etc. of which i had none. some place greater reliance on your credit score but some do not. you just have to try a few. oh and if you do your research you can find the ones who will do the check for free with no app fee. just ask.

[AngelinaCatHub]

Actually, the truth would be your best bet. In this day and time, you certainly are not unusual. Please always respond you any legal procedures. You will be more informed and the time may be very much more than expected before you have to leave.

Don't panic, it is not so bad. There are alternatives such as contract for deed situations. Best I can say for now without more info. 'Hub

[tjsmiley]

Not all apartment complexes will deny you. I asked two apartment locators if there were some nice apartments that would consider me with a bankruptcy. You would not believe the long list of actually nice, "luxury" type complexes that will take you!

In addition to that, many many people are in the same boat as you, or HAVE BEEN in the same boat. Contact the realtors who carry empty homes that haven't sold. Sometimes the owners just want a monthly income if you are not criminals and have a steady job/income and are clean, respectable people....they will rent to you. And consider this...one lady who had a condo I was interested in had declared bankruptcy herself. One of the realtors I talked to, and one apartment locator both had filed bankruptcy in the past. They were very sympathetic and willing to help.

I agree with the above poster, you need to be upfront and honest. As bad as the economy is, you are NOT the only one who is having financial problems. Just turn on the news, read the newspaper. I really believe you have nothing to worry about. You will be able to find something.

As far as how long you will be able to stay in your home, that's a question nobody can answer for you. If you called the bank, they probably would not be able to answer it either. I have been getting advice that indicates to stay until you receive a sale date by mail from your lender. Then it's time to pack up and move on.

[StrawberrySu]

sleepless, I myself am in Ohio, but not for long, moving to North Carolina this upcoming weekend. It took my hubby about a month to find us a place, but he was working long hours, and had difficulty getting to see properties. The one we ended up renting, he explained out situation, and she said she wasn't going to do a credit check. We have 2 rental properties and a home here in Ohio. We are going to let all be foreclosed on, haven't made payments since January. We basically told all realtors and private homeowners we were trying to do loan modifications on all three properties, and the banks required you to be behind before they would negotiate. I was afraid to tel people we planned on filing bk in the next few months, in case they were afraid I would stop paying rent and include then in my bk. Plus, plans could change, maybe I would change my mind and try for mods .... so I wasn't exactly lying, right? That's what I tell myself, anyways.

In any case, the most common response was "Lot's of people are in your situation, it's pretty common. Mostly concerned about employment." Which my husband just started new employment there. You know what I think did the trick? Him. He's a very personable guy. If I saw something on Craigslist, and responded with our situation, I usually got no response back at all. But if I sent him to see the property, they were very amenable. To the point where we got choosy, and took the place that suited us best. I think send you or your husband, whoever people respond to better, and then explain your situation if you want the place.

As a landlord in Ohio myself, who cannot get the rents needed on my properties, I would not have a problem with someone who could pay it, regardless of their credit. I only am concerned with evictions, and judgments for non-payment of rent. If you don't pay your credit card in order to pay your rent, you are my kind of renter!

[phsunny]

Honesty was the best policy for us. When we filled out the rental application we had been out of BK for 1 year, hadn't made a house payment for 15 months (pre-foreclosure according to Wells Fargo) and were literally afraid to check our credit score. We explained our whole situation to the realtor handling the rental and also I wrote a personal letter to our future landlord further detailing our lives and describing what kind of people we are and how we ended up where we were (I highly recommend the writing of a letter). They ran a credit check.......which came back with a score of 645 (we were shocked it was that high) and were told that because we took the time to explain ourselves and the BK that showed up on the credit report (the forclosure/pre-forclosure DID NOT) we were able to secure the rental ~ no problem. We did though, have to provide first and last months rent, as well as a security deposit - but in those 15 months of free rent, we had saved up more than enough to do that! Good Luck!!

[bcohen]

These days, it seems like stable income talks, and everything else (except criminal history and past judgements for unpaid rent) can be looked over. If you have a job, then unless you are in an area with an unusually "tight" rental market, I'd expect that even a large apartment complex would approve you bankruptcy or not. I know several people that filed, and were able to get an apartment with no problem.

[sleeplessinohio]

Thanks to each of you for your replies. I appreciate your experiences and perspectives and you're all spot on.

To anyone in a similar situation; the responders are correct.

I've spent the weekend making phone calls and in most cases, eligibility is based on income. To be honest, our pets are more troublesome than our credit history.

Best wishes to everyone.

sleepless in ohio

[helpme2010]

I am in foreclosure and of course every landlord asks this question. I tell them I had to file BK, because when I went back to school full time to earn my degree, the banks and credit lines froze my credit. I tell them I had to file BK, have no debts, have a very high paying job with a stable company, and offer to put up to 5 months rent down up front. Most still turn me away. But I have had a couple so far that said yes, but they were in foreclosure. So I have another new one that is saying yes, but haven't verified if they are in foreclosure yet or not.

Try offering your landlord several months rent up front and see if that helps.