What do I have to tell future landlord?

[backontrackOH]

I have been very confused about the process of providing a home for my family during bankruptcy. We are surrendering our current home (upside down and costs too much). I have read posts from some that say stay in the house as long as you can to save up for when you do have to vacate the property. I have read posts from some that say you need to find something before you actually file so you don't have to list the bankruptcy on the application (same advice from my lawyer). I need to know what to do.

We are at least 30-60 days away from filing at this point. I have found a house that will be available by the end of July and it sounds promising. I have no problem with not listing the bankruptcy on the rental application.

1. What do you put down for your current address? Don't they ask if you renting or purchasing?

2. What do you say is your reason for moving?

3. Won't they run a credit check? How do you get around that?

Should I just come clean from the beginning? We have been forced into bankruptcy due to my wife's health. I have a great day job ($42K/yr., been here for over 2 years now), and around $10-15K/yr. additional income from a consistent part-time job (photographer). My photography business went south last year when I had to redirect all of my time to my wife and family. Do you think a landlord would consider us a safe risk? Please help!

[wrinkleigh]

If you know it is coming open in July -- is it possible to get the landlord to go ahead and do the paperwork and credit report pull? Tell him the truth -- you want to downsize your expenses and his property is perfect. Tell him you just want to get everything lined up now.

You have not filed yet -- and I am assuming your mortgage is up to date right now. So, if he will do it now, you can get approved -- then quit paying and get ready to file.

[BassBoy]

Many of us who have surrendered our home will have different opinions about when you should move. To be honest, it will be up to you to decide when the right time is. Knowing you have 12 to 18 months to be in your home (Ohio's average timeframe), you don't need to move now.

Anyways, you should come clean with the homeowner/landlord about your situation. No sense in filling out a rental application if the homeowner does not accept people with credit problems. If you're filing BK, your credit report may already look bad, unless you're not behind on anything yet.

If you do decide to move now, you should put down your currrent address and the amount you pay per month. If the question arises whether or not it's a mortgage payment or rent, then be honest.

As to why you're leaving, who cares. It's none of their business. This isn't a job application for Pete's sake! But again, it's best to be honest.

It's possible your credit will be checked, but maybe the homeowner/landlord will not bother running your credit if they are aware it's shot at this point. And you never know, you may find a homeowner/landlord that is willing to work with you and will allow you to take the place.

To make it easy on you, I would suggest you make some telephone inquiries to homeowners/landlords and ask your questions. They won't know you and you won't know them.......less stressful and/or embarrassing.

Be patient. Good things come to those who wait.

[DeadManCrawling]

We own a home "in trust" for my son. His biological father passed away a few years ago and it is our responsibility to maintain the place.

We have rented it out to someone with less than perfect credit, who is a wonderful renter.

Here's how they explained the situation when they wanted to rent it:

They had been renting another home in the same neighborhood that was sold out from under them. They were looking for a place to "regroup" and get their financial and job issue straightened out. They intended to stay in the house for 6-8 years, minimum.

Our son will graduate in 4 years, which would mean they have been there for 7 years when he turns 18 and the house is his to do with as he wishes.

These folks were honest and forthcoming. They didn't hide anything or try to, and knew we would be checking their credit.

Their explanations were thorough and factual, and easily verified. We DID ask for proof of current income and so forth, which they provided.

They have been great renters, and we have not actually ever met them in person. The house is a couple hundred miles from us, and we have afriend occasionally drive by and make sure the place is mowed, etc.

In fact, one thing that really made them attractive as renters was:

They asked if they could repaint the interior walls and lay down carpet. They sent us samples (we didn't want the rooms painted Cherry red with black highlights), and we paid a portion of the costs.

That alone, in my mind made all the difference. The key was knowing they would treat it as though it were THEIR home, which, I suppose it is.

They pay $300.00 per month LESS than the mortgage payment (we make up the difference), but it is for our son's future, and we are happy to take a loss on it for now-they are that good.

Occasionally we have to remind them to get the money wired into our account, and twice it has bounced. In both those cases, we called them and they explained what happened satisfactorily. Also, they paid the overdraft fees.

Some of these things might make you very attractive to the right landlord. We have been pleased by the experience, and they have, too, knowing that they won't have the place sold from under them, as happened before. We, meanwhile, are happy to have long-term renters, even at a slight loss.

-dmc

[SinkingFast]

We told our Landlord the truth. Kinda. Sorta.

Hubby lost his job. Went 7 months unemployed. Found new work in a different State. He moved first and then we moved. We were renting and paying house payments. And CC's minimums. Until we just couldn't do it any more.

We were on the verge of filing BK and the house in Foreclosure outa State. I told our Landlord about the Foreclosure but not about the BK. She's in Real Estate. The market had tanked pretty much all over the country. So she understood.

We'd looked at other places and were honest with them too. You can tell if people will be understanding or not. If they aren't, you don't wanna rent from them. You could wind up with the Landlord from hell.

[backontrackOH]

Thanks for the replies, more input?

At this time, we are not current with our first or second mortgage. The first has not been paid since December and the second since February. The foreclosure process is proceeding with the first mortgage holder having filed a motion for default judgement. I have no idea how long we have, but rental homes in our area are few and far between, at least the ones that are advertised in the city or local papers. We have begun to drive around street to street looking for something that might not be advertised, but no luck. The home I talked about in my initial post has not been advertised yet. I called on one of the owner's other properties today, which had already been taken, and he told me about this one coming up. We did a drive by this evening and it looks good. I am going to call tomorrow and see about a showing, if possible. I just don't know what to tell him. Can I be vague at this point, since we have not officially filed? Here's my story, see what you think.

Landlord: Why are you wanting to rent if you own a home now?
Me: Our first and second mortgage are out of control and we can't keep up. My self-employment income has ceased because of my wife's illness last year and we relied on that for the mortgages. Our credit isn't strong enough right now to qualify for a new mortgage, so we want to rent for a few years to re-establish our credit.

Does that sound OK, or should I be blunt and to the point. Do I tell him we are about to file or try and avoid the subject? I will complete the rental agreement in total honesty. I don't want him evicting us down the road because he thinks I lied or purposely hid something from him.