Question Renting a home after chapter 7

[Lolabeagle]

Hi all...

The good news is that after 3 years of stalling my husband and I finally filed chapter 7 in March and were discharged in July 2012. More good news - my husband got an awesome new position with more money. The bad news...it is 1000 miles from our current location and that means moving. We are currently renting our home, almost 2 years now and have always paid on time without fail. Our landlord could not be any happier with us as tenants, so I know we will get a great reference. I am scared to death no one will touch us now due to the bankruptcy, and we will be out on the street. We would have enough to put down first/last months rent plus a security deposit but that would be stretching. Anyone have any experience with this? I am really, really scared and losing sleep over this!

[angel7821]

I am currently in chapter 13 with only 6 payments left to go. My living situation was becoming unbearable so I had to find a place to rent last month. I had no problems with it at all. But then I live in a smaller town of only 1000 people in it. But then again maybe it has something to do with my plan almost being finished also. But either way my new landlord just wanted to check on my employment and that was it. So I dont honestly think you will have that many problems with finding a new place to rent. Best of luck to you and your husband on your new ventures in life.

[ValleYum]

We just rented our first place after our BK 7 and were surprised that it was fairly simple.

We had been here in the home we are now trying to give back to the bank so we didn't even have any recent landlord references.

We looked at property management companies as well as private owners.

Property Management Companies:

How to find them? You can find apartments in the apartment guides - the Chamber of Commerce of the city you are moving to can usually send you an information packet with the guides in them or tell you where to get the guides when you get there to house hunt. We found PM companies that managed houses for their owners by a Google search: 'Seattle, WA rental houses' -or- 'Seattle, WA property management'.

Credit Reports, Deposits and Fees: The PM companies tend to run credit reports and that will add inquiries to your credit bureau files so be careful how many of those you fill out. They all wanted personal references, recent pay-stubs, previous landlord and employer contact info. Most had a website where you could read their rental requirements and download an application. Most of the PM companies around here had $750 security deposits on houses up to about $1500/month and charged an extra $250 deposit due to the BK - total of $1000. Most also charged a "file set-up fee" of around $200. You then had to pay the first month's rent to move in. None of the PM companies we dealt with wanted last month's rent.

Pets: If applicable, pet deposits and/or fees ranged from $200-500 per pet. Deposits are refundable - fees are not.

Private Owners:

How to find them? We looked on Craigslist and in our local papers for rentals. Of course, be safe and vigilant when responding to Craigslist ads - scammers are everywhere. We were able to look on the county auditor's site here to make sure the owner of the home were the actual people we were talking to as well as to ensure they weren't in foreclosure or delinquent on property taxes. Be prepared to move fast! Here in our area, you need to be quick to get the nicer homes. I had a letter saved that I basically cut and pasted into an email - just changing the pertinent info - I used that when I saw a house I liked. We usually set up a meeting at the house. Hubby and I always went together for safety's sake.

Credit Reports, Deposits and Fees: Owners varied on credit reports - some wanted you to bring a copy that was less than 1 month old and others wanted you to pay them to run your credit. I preferred to be the person running my credit, so we provided our landlord-to-be with a printed copy of our Experian report from Quizzle - they are totally free and the report looks very similar if not identical to my actual Experian report that I received during a free trial from their website. We just blanked out the part of our SSNs that printed on the report. Some owners wanted first month's rent, last month's rent and SD while others were happy with a SD and rent when you moved in. The SD requested was usually between $1,000 and 1 month's rent. All of the potential landlords I talked with were absolutely fine with the BK. None wanted any additional deposits or fees because of the BK. When I went to apply or look at homes, I had several sets of copies of our photo ID (to prove we were who we said we were), our 2 most recent pay-stubs (you may need a job offer letter from hubby's new employer), proof of 2 years of employment - I just used 2011 and 2010 W-2s, our latest credit reports and the copy of our BK discharge so if I wanted to apply on the spot, then I could. Remember to black out any of your personal info like SSN and DOB from any copies you give to the landlords. Having a letter from your previous landlord to show a prospective landlord would be a good idea, too!!

I did notice that offering a longer term lease - we asked for a 3 year lease - made us a hot commodity to the landlords. We did have a clause added that if we had to move during the lease term due to job loss, etc. that we would give 30 days notice (or pay the equivalent amount in rent) and we would lose all of our deposits.

Pets: This can get pricey with private landlords as they are all scared of the damage that can be done by pets. We have 2 medium dogs and 2 cats so I had to be ready to sell the pets and us to the potential landlords!! I had all of the rabies and spay/neuter certificates, a picture of all the animals with me as well as the latest vet receipt for flea control with me when I met the landlords. I offered to pay reasonable monthly pet rent and offered to have the carpets professionally cleaned once per year with a copy of the receipt sent to them in order to reduce the deposits/fees. Overboard? Maybe. The landlord we chose dropped her pet deposit of $2000 ($500 per pet) and $250 in pet fees down to a $250 total pet deposit and $250 in fees!! We will pay $5 per pet per month in pet rent ($20) and we are having the carpets cleaned yearly for the owners.

LOL was this long enough?!?!?

In the end, we were approved by a rental home community (nice place that had 150 three BR two BA homes with fenced yards) and by 2 private landlords. We were able to choose the best place for us and our fur-kids. We get our keys tomorrow and are actually moving in next week - we can't wait!

Good luck to you! I know it seems scary but you just need to remember Landlords just want to rent their property to who they think will be the best tenants - just tell them you are the best.

[Lolabeagle]

Thank you! That really helps, I envisioned being out on the street or living in my car. Thanks again.

[tobee43]

i know in our area because of all the empty homes it is quite easy to secure a rental property. however, in our experience, but this really depends on where you are, it's best to go with a private owner, as property managed premises are usually hard-nosed when it comes to their polices and a a result it could work against someone who is just coming out of a bk. unfortunately, here, anyway, money talks if you offer 3-5 months in advance and explain truthfully about your past, it has seemed to worked for many. i'm just saying, many times a private owner may a bit is flexibility, although, i'm certain in many cases it also could work the other way. i know here, at least because of all the vast amount of inventory they don't even ask for security anymore! so, if i were you, i would look in those types of areas, if you can.

valle has given you excellent advise! i do believe, really, it will not be that difficult these landlords want there properties rented!!! best of luck, and i'm sure it will all work out for the you make sure you keep posted on your progress your experience during these times, especially are also really helpful for many again best of luck!

[bcohen]

Renting from a REPUTABLE property management company is best, if you can qualify. The key word, here, is "reputable", which means that the company will take care of the property, handle any repairs and maintenence issues quickly and correctly, and keep crime and vermin away. Not all property management companies or apartment complexes are reputable; some are, but a lot are not. There are websites which you can look at, where past and current tenants post reviews based on their experience in a particular apartment complex.

If you decide to go the private owner route, make sure to check the county ownership records to be sure that the person you are renting from is in fact the owner of the house, and that no foreclosure proceedings have been filed against that property. A lot of unscrupulous homeowners attempt to rent out their house, while NOT paying the mortgage, and allowing the bank to foreclose. Under this situation, you not only run the risk of being forced to move quickly when the house is sold at foreclosure, but you can be sure that the owner isn't going to put much (if any) money into the property for repairs, since they know they will eventually be foreclosed upon.

Since you say that you have a good job, you should be able to qualify for an apartment at a reputable complex. Be sure to raise the fact that you filed for bankruptcy because of ___________________ (list of reasons which are NOT your fault) however, you now have a good, steady job, and are working to improve your credit. If the bankruptcy is a problem, then you can avoid wasting time viewing the apartment, or money paying for application fees. Most likely, it will not be a problem, as the economy has been so bad for the past 4+ years that most people have serious blemishes on their credit.

[tobee43]

Renting from a REPUTABLE property management company is best, if you can qualify. The key word, here, is "reputable", which means that the company will take care of the property, handle any repairs and maintenence issues quickly and correctly, and keep crime and vermin away. Not all property management companies or apartment complexes are reputable; some are, but a lot are not. There are websites which you can look at, where past and current tenants post reviews based on their experience in a particular apartment complex.

If you decide to go the private owner route, make sure to check the county ownership records to be sure that the person you are renting from is in fact the owner of the house, and that no foreclosure proceedings have been filed against that property. A lot of unscrupulous homeowners attempt to rent out their house, while NOT paying the mortgage, and allowing the bank to foreclose. Under this situation, you not only run the risk of being forced to move quickly when the house is sold at foreclosure, but you can be sure that the owner isn't going to put much (if any) money into the property for repairs, since they know they will eventually be foreclosed upon.

Since you say that you have a good job, you should be able to qualify for an apartment at a reputable complex. Be sure to raise the fact that you filed for bankruptcy because of ___________________ (list of reasons which are NOT your fault) however, you now have a good, steady job, and are working to improve your credit. If the bankruptcy is a problem, then you can avoid wasting time viewing the apartment, or money paying for application fees. Most likely, it will not be a problem, as the economy has been so bad for the past 4+ years that most people have serious blemishes on their credit.

i guess that a good thing in AZ...here they are just as shady as the private owner who may not really own the house. scams are happening all over. i think you hit the nail on the head when you used the word "REPUTABLE" which apply to either a private owner or a property management company.

[Lolabeagle]

So far the ones on Craigslist have been scams. My personal favorite...getting two responses for one ad, one claiming that they were in Nigeria, and then claiming that they moved to NJ because the husband was chief of staff of some hospital. Jeez - I may be bankrupt but I am not stupid! I feel pretty helpless because my husband is out there right now, and I am here trying not to go crazy.

[tobee43]

So far the ones on Craigslist have been scams. My personal favorite...getting two responses for one ad, one claiming that they were in Nigeria, and then claiming that they moved to NJ because the husband was chief of staff of some hospital. Jeez - I may be bankrupt but I am not stupid! I feel pretty helpless because my husband is out there right now, and I am here trying not to go crazy.

wow nigeria, now that's a FAR commute!!! what will these scammers think of next. we hear about it here everyday on the news...except a few couple, and this is really sad, thought they actually purchased a HOME!!!! only thing was when the REAL owners came back from vacation and found people living in their home it was a really big mess. it's a scary world out there.

[ld2366eh]

If you are looking for a house to rent, you should try googling "homes for rent in xxx, xx". There are a few sites out there where you just put a city and state and it will bring up listings in your area. Homes and realtor are a couple that I can think of. May be better than Craigslist?

[Lolabeagle]

Did you have any trouble with using the reports from Quizzle with perspective landlords? I printed off the credit report today, and happily the score is much better than I anticipated and some of the negative/collection items are not even showing up. My husband found a really cute house through a property manager, and they told him that he can run his own credit report. I am keeping my fingers and toes crossed!

[ValleYum]

No problem at all with using Quizzle - our Quizzle report said "an Experian company" right on it. Or print out an article about Quizzle to give them with it. Remember to make several copies!

[Slingerland]

If I may provide a landlord's perspective:

I own a lot of properties and manage them myself. I pull credit and criminal on all applicants. Most independent landlords who pull credit themselves have to go through a vetting process through TransUnion, Equifax or Experian and part of that vetting is how the applicant's data is stored and kept safely. When a tenant offers to pull their own credit, that's a BIG red flag to me... I've seen MANY good forgeries of credit reports.

I used to look down at applicants with bankruptcy until my wife developed health problems. Even with insurance, I spent a lot of money. Add into this mess the economy... tenant turnover going up... unexpected repairs at the rentals and taxes, and I came within a hair's breath of filing a C-13 myself. So I stepped back and looked at my business model.

Now I'm bankruptcy friendly. I'll look at the applicant's employment and criminal background with more emphasis. I will probably ask for a higher security deposit (long story, it's a Fair Housing thing), but after six months of on-time payment, I refund the "extra" deposit back to the tenant. And I've found that in my business, I get more long-term and happy tenants by understanding their financial needs and adapting. And if the tenant is happy, they stay longer, my vacancy rate goes down, and I actually get to make a profit!

Bottom line: if you go for the independent landlords, be open and honest about what happened. If you've been renting since, show the landlord some documentation of it and show you can pay the rent at the new place. Ask about the utilities as well, some older houses are not so well insulated. Most landlords want you to stay a while and be comfortable financially.

Hope this helped...

[tobee43]

i have to add this: as per the perspective of the landlord. many many moons ago, along the far south side of the sun's rising we use to be landlords...

the BEST tenants we ever had were a young couple and he just got out for 2 years in jail and just asked us for a chance. BEST thing we ever did. he kept that place perfect and did so much work on it we actually told him STOP. they stayed almost 10 years, just enough time to buy a house finally on their own.

WORSE tentants EVER: two chemists with PhD's left us high and dry and destroyed one of the of course 3 bedrrom apts. perfect credit by the way! just goes to show one can never tell.

[bcohen]

...Ask about the utilities as well, some older houses are not so well insulated...

That's another thing. If you are considering renting a house or apartment where YOU are expected to pay the utilities yourself, ask to see copies of past utility bills for that address. If it's an apartment complex, the manager should be able to obtain them. I know that when I was looking for apartments, I looked mostly for ones that included all major utilities, and for those that didn't, I asked to see copies of the billing history so I could see what the average monthly electric and gas bills would be. Some were willing to provide this information, but most were not. The ones who were not, I assumed had something to hide (i.e. the utility bills would be so outlandishly high, that I would be unwilling to stay there) so I looked elsewhere.

Fortunately, I live in an apartment where all the utilities are included, so I don't have to worry about paying outrageous utility costs. And of course, we have modern energy-efficient appliances, since the owner pays the utility costs. In fact, we just got new water-saving toilets, faucets, and shower heads as well as new energy-saving lighting in all the apartments, and next month they're going to replace all of the drafty windows and doors with new ones. Try getting a landlord to make those kind of upgrades when YOU are the one paying the utilities!