How challenging will it be to rent after foreclosure?

[4powells]

Over the last few years our situation has deteriorated and there've been some 30-day credit card lates. We are going to walk away from our mortgage and this will alleviate the financial shortcomings we've had. When the foreclosure is complete, we planned to move closer to family into a less expensive home and lifestyle. We'll obviously have to rent, but now I'm starting to worry that if people simply pull fico scores they're going to see a trainwreck and not take the chance to understand the situation (not that I expect them to care, really.) If you have bad credit and can't buy or rent, what do you do? Surely it can't be that bad. Are people homeless because their credit is bad??

We have no renting history, been homeowners for 15+ years.

[4powells]

I meant to add that by the time we are looking to rent, I will have over 10 years with the same company and a stable income history going back 20 years.

[rn583764]

I am a landlord and rented my unit to a couple that had a foreclosure on their record. Just be honest with the landlord from the beginning and check if they would even consider renting to you given your history before doing the credit/background check. I also know of other people who are renting their homes to those with foreclosure record. Just be honest from day 1.

[Jeffrey L. Shurtliff]

I rented a house on the day I filed bankruptcy. Told the landlord about it and really did not need to as it would take a few days to show. Then there is the money. Who turns down cash two months in advance with deposit. Nobody in their right mind!

[kriptik]

You speak the truth Jeff! No one, especially a person who's trying to rent out a home. The best thing to to is just lay it all out honestly.

[4powells]

Update. Our bankruptcy was discharged in March and just last week we were able to get a lease on the very first house we applied for. Granted, it wasn't easy and I helped grease the process by writing a letter of explanation along with an extra month of security deposit. Still, it wasn't as scary as I thought it would be but it wasn't as easy as it is with good credit. At the end of the day, I think most intelligent owners know that people are more than their credit score and finally, money always talks.

[kriptik]

Hey thats good news!!

[Sleepless in Atlanta]

4powells, congratulations! Now you can start moving forward. I'm still waiting for my Ch 7 to be discharged, but we moved last month.
My rental experience was similar to Jeffrey's... while it was a nightmare even finding rentals that were actually open (realtor websites are extremely inanccurate!!) I found 2 by accident, unadvertised but in the same neighborhoods as the 'advertised rentals that were no longer available'... The first one was by owner who had a few homes in the area he rented, and a very nice man. I explained my situation and he couldn't have been nicer or more understanding. The second was formerly a foreclosure (how's that for irony!) purchased a few months ago for 1/3 the value by an investment group. It is managed by a propery management group. We ended up moving into the 2nd, simply because of the location- but both were totally fine with my bankruptcy in progress. They only cared about my income and that I could afford the rent. The realtor/rep for the investment property told me that they see bankruptcies and past foreclosures all the time and that my credit issue was not unique.... theres hope for us all