Housing After Bankruptcy

[nioka]

One thing I am very concerned about is where will I live post BK. I know that post BK my credit report will show up like a flashing neon sign.

I tired calling a few managed apartment complexes just to see how they would respond. Interestingly, they responded favorably and the only thing they mentioned was I needed to wait until after my BK discharge. (Something legal they said). I thought they might require a bigger deposit or first, current, and last months rent, but nothing like that.
One complex I called was a 55+ with government subsidies for tax credit elderly. I thought no-way, but they said as long as I was under the income guidelines and after my BK discharged I was more than welcome. Surprise, surprise.

Anyone have any relocation stories?

[justbroke]

Mine was similar. I actually rented two places, one during my Chapter 13 and one after discharge of my Chapter 7 (after conversion). During my Chapter 13, I kinda was indecisive about keeping one of my investment properties and decided to keep the one furthest away (the one I would not live in). So I needed to rent. So I did rent a single family home from a posting on a for rent site. I just had to explain the reasons my report was a little spotty.

After I converted to a Chapter 7, I needed an apartment in another State. I had a very specific apartment (complex) picked out and called. They told me that they do everything based on credit and the discharge must be 2 years old. Well, I applied anyway and was accepted. I also received all the concessions (no deposit, $500 off first month)! They based it entirely on my credit scores which were around 660 upon discharge.

In any event, I have read that others have had some trouble with apartment complexes and management companies. But overall, I think that if you have good scores and no evictions, you should be able to find something.

[nioka]

Justbroke,

Prior to buying my current house I had decided to get out of home ownership and to rent. I rented from a major rental corporation in PA. They charged me $35 for a credit check. At the same time I wanted to get a recent copy of my credit report and learned that any business that requests money to run one's credit must also provide a copy of that report on demand. It turned out that they had never run the credit report and simply pocketed the $35.

Doing some research on the web I learned that a lot of rentals do the same thing. If a potential renter walks in and looks and sound presentable many do not run the check. On the other hand, if the applicant has a less than clean-cut appearance they do run it.

I guess that most realize that anyone coming away with a clean discharge will have the money to keep their rent payment current.

[justbroke]

I know that happens from experience as well. I was trying to rent for my ex and found a house for her. I signed as a guarantor for the first year. They never ran my credit. I called them and said no. They wanted 2 months deposit. That's not even allowed by law here. So, I checked and they never ran anything.

As for the other 2 rentals that I mention, they actually did run my credit. My Equifax monitoring was all abuzz!

[Blossoms]

It really depends on the landlord. My husband and I had a 2003 bankruptcy and have since rented two houses, from small time landlords, without a problem, and just a regular one month security deposit. One of my brothers however, filed for bankruptcy in 2000, and has had some trouble renting. I don't think the bankruptcy could be on his credit reports still, but his credit is not good anyway. He and his wife just moved to a new rental home, and had to fork over first and last month's rent, PLUS a security deposit, for the landlord to agree to rent to them, about $8000 altogether! My old landlord said he cares more about good rent payment history and any record of eviction, more than whether the tenant has had a bankruptcy, but all are different.

[nioka]

One issue with renting with a BK history is that most charge anywhere from 20-50 dollars for a check. That could get pretty expensive if one keeps getting turned down.

On the subject of evictions, because I am in an HOA I plan to wait until the home ownership is transferred. From what I understand once the property is foreclosed and a new owner takes over there is period before eviction where the new owner will attempt to coax the old HO or tenant off the property.
I am hoping to escape this house without an eviction but with the HOA fees firmly in the hands of he new owner. The odd thing here is that I have read where some BK HO'ers stayed in the house for years before they were asked to leave. Even more odd was they were paid to do so.

Is there anything one can do with pre-planning to improve their position for finding decent housing after BK, foreclosure, and/or eviction?

Thanks

[tobee43]

we did by stopping pay our mortgage, we used that money prior to filing to secure a place to live while and after filing.

the reason you hear of people staying 3 years and more is they are in judicial states you have to check to see if tenn is judicial or non judicial either way the HOA are most likely subordinate liens.

[nioka]

tobee43,

TN is a non-judicial state. From what I read the TN foreclosure timetable is about four months.

However, I have also read of cases here in TN where the bank did not take possession and the HO was left paying the HOA fees for years. As much as I would like to leave I will stay here until another owner assumes the HOA fees. The first attorney i met with told me not to worry about HOA fees because my income it bullet proof. However, bullet proof or not if non payment of HOA fees are on my credit report afterwards I believe that would be the same as shooting myself in the foot.

I had thought about finding another place in the meantime however I plan to move to the west coast when this is all over. I don't think finding a place out there now would be practical.

[tobee43]

we did it for over 6 months!!! that is, rent in another state without paying the mortgage. we had to take a few trips down but we did it. it was in fact practical for us. we were all set up when we went to leave. it was great actually. less stress, and while home is where the heart is, it was comforting to have things all in place when we got here. it help us psychology i think