Trouble finding rental house due to impending bankruptcy

[beachchick]

I am a landlord and I have had a Chapter 13 but even before I had a bankruptcy, it did not matter to me if a tenant had a bk, I too go on a gut feeling, actually I find that tenants who have had a bk are often times better tenants than those who have not, they know what it is like to go through a financial crisis and are usually grateful for the opportunity to rent and are the best tenants, landlords who don't understand this are landlords who, like most people who never had a bk, have total misinformation about bk and what it is. I have found that the biggest problem with bk is not the bk but the stigma attached to it by this total misinformation and lack of understanding. Read Bankruptcy, How To Survive and Prosper, to get a good handle on bk, available on Amazon.com

[helpme2010]

I had someone on this board lecture me about trying to stay in my house longer until I found a job so it would be far easier for me to rent a place. He said all you have to do is get a place, like it was so easy. I knew it would be some work and a lot of patience finding someone who will rent to BK victims. We just have to be patient and creative. Just another stage to look forward to in the joyous bk and foreclosure cycle of life.

[nceguyfromne]

I'd say your biggest disadvantage might not even be your BK but rather your lack of rental history, since you are moving from a home you own. While some landlords will make personal judgments about you and your risk to them based on your BK, your ability to pay is ultimately what is most important. If a landlord denied every renter with a history of problems, most of their rental units would be vacant. Be sure you have a strong case for being able to afford the rent payments, such as demonstrating a stable income that is, if at all possible, at least 3 times the rent payment. Also, if you can afford it, tell the prospective landlord you are willing to back up your assurances with money, such as offering to put down a larger security deposit or an extra month's rent as assurance that you are serious. Lastly, don't be afraid to point out to an unsure landlord that your bankruptcy actually makes you a safer risk because you are not saddled with crippling debt and cannot go to court 6 months from now and discharge what you owe him/her.

Renting with a BK can be challenging, but it's far from impossible. First and foremost, you need to know and truly believe that your BK does not define who you are. Secondly, you may need to get creative and be willing to pay a little extra for what you want.

Best of luck!

[helpme2010]

I'd say your biggest disadvantage might not even be your BK but rather your lack of rental history, since you are moving from a home you own. While some landlords will make personal judgments about you and your risk to them based on your BK, your ability to pay is ultimately what is most important. If a landlord denied every renter with a history of problems, most of their rental units would be vacant. Be sure you have a strong case for being able to afford the rent payments, such as demonstrating a stable income that is, if at all possible, at least 3 times the rent payment. Also, if you can afford it, tell the prospective landlord you are willing to back up your assurances with money, such as offering to put down a larger security deposit or an extra month's rent as assurance that you are serious. Lastly, don't be afraid to point out to an unsure landlord that your bankruptcy actually makes you a safer risk because you are not saddled with crippling debt and cannot go to court 6 months from now and discharge what you owe him/her.

Renting with a BK can be challenging, but it's far from impossible. First and foremost, you need to know and truly believe that your BK does not define who you are. Secondly, you may need to get creative and be willing to pay a little extra for what you want.

Best of luck!

This is good advice and I will try it. I can put down that extra amount if that is what it needs to help with the risk factor.

They say moving is one of the most stressful things you can go through in life. But add that with a foreclosure, a bankruptcy, and not being able to find a job (so looking and eventually interviewing for a job) and this is one lethal combination for the stress levels.

[enuffznuff]

If you are filing BK, going thru foreclosure, and, it sounds like, one of you is unemployed, that last bit might be holding you up more than the first two.
When I had rentals, I would rent to people w/ credit issues, but not a 2 income family down an income.

[researchnerd]

If you are filing BK, going thru foreclosure, and, it sounds like, one of you is unemployed, that last bit might be holding you up more than the first two.
When I had rentals, I would rent to people w/ credit issues, but not a 2 income family down an income.

How would you know if one person was unemployed voluntarily or involuntarily? Some families have 2 potential wage-earners, but one of them chooses not to work for whatever reason. Just curious...

[Bell30656]

If you put yourself in the property owner's shoes. They want to be sure that you will pay them and that there won't be a court battle to get you out of the property. Many people are not educated on bankruptcy and what it entails. What the property owner is thinking is that you were not financially responsible.

How can you turn the negative of a bankruptcy into a positive. You could explain to the property owner that you have filed bankruptcy and that a person can only file once every seven years so the owner doesn't stand to lose from that aspect. You can offer to pay a larger deposit or to a discount if the rent is paid in advance of the due date.

In my case it was just me and my daughter (who was six at the time). We bought a mobile home for cash and I just pay lot rent. That temporary home that we moved into in May 2008 is still my home. However, I'm closing on a house on February 7. Funny thing is my payment is only $392 a month.