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Finding a place to rent after foreclosure

Discussion in 'Deed in Lieu of Foreclosure - Do You Need Help to ' started by hiroppi, Feb 20, 2012.

  1. hiroppi

    hiroppi LoanSafe Member

    I've read through many of the threads on this forum and the information provided here has really helped my husband and me to make the decision to walk away from our condo in southern CA. Our first missed payment will be in March.

    I know that many posters do not return much to tell their stories after the foreclosure process, but I was wondering how much difficulty people have been having in renting a new place after walking away. Is it just a matter of explaining the situation to landlords and potentially offering a larger security deposit or a few months' rent up front, or is it a bit more of a struggle? We are hoping to move into an apartment complex run by one of the large real estate developers out here (Irvine Company), but wondered if it may be harder to get into a place like that as opposed to a rental owned by an individual landlord.

    We'd appreciate any experiences you may have to share!
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi hiroppi,

    Welcome to the forum and thank you for joining........

    If you are walking away from a condo, just make sure that you are keeping up with the HOA fees because HOAs can and do attempt post-foreclosure collection against the foreclosed former owner.

    Here are some members who are posting about renting after foreclosure;




  3. NewShoes

    NewShoes LoanSafe Member

    hiroppi -
    Our story is recent and I found it to be the most stressful part of our walk. My husband and I started looking for rentals in Seattle, WA at the beginning of February. We looked at 3 places. The first place was my dream place so we put in an application but we were denied. It was owned and managed by a small local builder. We did explain our situation; however we were talking to the building manager, not the person who made the decision. The owner was hung up on the credit report. Looking back, we should not have even applied. There was indication that the credit report would be their primary tool to make a decision, but it was my dream place so I was being optimistic. I had reviewed our credit scores through Credit Karma & My FICO Equifax which showed 670 & 630 respectively. I knew they were not great, but I thought as long as they look at the big picture, we should be fine. We have stable jobs, sufficient savings, little other debt, and the only negative indicators on our credit are the two mortgage accounts. The place pulled our TransUnion credit reports and those scores are 580. Being denied was frightening and stressful. Though we have not even received our NOD, I feared becoming homeless and started regretting our decision to walk.
    My husband looked at the second place. It was a privately owned & managed building with 32 units. When he arrived, there were three other couples looking at the place. He was not interested in the unit, but we also figured there would be no way we would get it if there was competition.
    My husband went and looked at the last place, which we applied for, and were able to secure for April 1[SUP]st[/SUP]. My husband met with the landlord/ owner. The owner does professional building management, but also owns three multifamily units in the city. My husband was honest. He explained that we were going through a strategic default and why. My husband offered additional rent & deposit. The landlord was very empathetic of our situation. We filled out an application and submitted with supporting documentation of why we were a good risk; income verification and credit reports from before our default. We signed “Intent to lease” letter the next day. I was very relieved!
    So far, it was the most stressful part of the walk. It is very frightening and discouraging if you get denied. Being able to speak directly with the landlord seems to be the key for us. My advice is to begin searching sooner rather than later and just keep looking. Someone will eventually rent to you.
  4. Hondo

    Hondo LoanSafe Member

    We only filled out one application before we were approved. We had to provide first and last, plus a deposit. The landlord couldn't care less about the foreclosure, he just wanted to know that our debt to income ratio was good and that all our other payments for other things were on time. It wasn't a problem.
  5. calgirl67

    calgirl67 LoanSafe Member

    We are now renters after foreclosure. Not only did we have a foreclosure after not paying for 2 yrs, but a bankruptcy in 2010 as well.

    Rentals are relatively scarce in our area and always lots of people were looking at them. We looked at a ton of places. Most were too expensive or just plain dumps. We had a specific price range we intended to stick too and it was the lower end due to we just don't want to pay a lot in rent, we want to save money to buy again.

    At the first phone call I was upfront about our credit history and the BK. Most of them didn't really care. There are a handful of property management companies around here that clearly state on their websites that credit was the deciding factor so we just steered clear of them, didn't even both looking or calling.

    After our foreclosure (we had 4 weeks to find a place and move - we got cash for keys) we narrowed it down to 2 properties. One a newish (5 yo) house and one an older one, that had been renovated. Both homes within a mile of our old house. We decided on the newer home and I explained our situation to the property manager and he did not blink an eye. We paid 1 mths rent as deposit, 1 month in advance and a $500 pet deposit for both our dogs. We moved in the following week. The fact my husband has had the same 6-figure job for 14 yrs, and we have very little other debt, and besides the foreclosure and past BK our credit is surprisingly good, that was enough for him to approve us.

    My advice would be to weed out the "credit snobs" way before you even make an appointment to look at a property. Tell them upfront on your initial phone call you are going through a foreclosure and is that going to be a problem. Also ask them what their minimum credit score requirement is.

    Don't worry you will find something suitable.
  6. Corey

    Corey LoanSafe Member

    I'll be facing the rental problem at some point. If a renter is willing to give up more than first and last months rent... like lets say the renter said "hey, I'll give you FOUR months of rent up front on a 1 year lease" would the landlord or management company be fools to turn them away?? Especially if it was written in that 3 of those payments would be your LAST 3 and the 1 being your first. I just think that money talks, and if the renter is willing to sacrifice money up front I don't see how renting could be a problem. Even if you went to a complete extreme and told the landlord you would pay your entire lease up front... at that point credit shouldn't even matter.
  7. hiroppi

    hiroppi LoanSafe Member

    Thank you all so much for your insights. Since we have a baby and no family in the country, even the remote prospect of not finding a place to live is stressing me out the most. Reading your posts has made me feel a little better.
  8. RussLA

    RussLA LoanSafe Member

    Our Notice of Default was filed in early November but a sale hasn't yet been scheduled. We looked at a bunch of apartments and applied for the one we liked best, and we were approved without any questions, negotiating or additional money. One month's deposit and the first month's rent - done. Moved in two days ago.
    Credit score under 600, by the way.

    It's just one story but I thought I'd add it to the mix.
  9. vato_loco

    vato_loco LoanSafe Member

    My condo foreclosed last summer. I looked at a bunch of rentals but only applied for three. I was upfront with my situation. The first was through a property manager, who's only concern was whether or not I was working. I was about to sign the lease but the owner (a woman in her 80s) balked at either the foreclosure or credit score (probably both) and backed out. The second was sympathetic and seemed willing to rent to me but ultimately chose someone who applied first. The third try was successful. The landlord and I hit it off right away. I offered to pay a larger deposit up front but he wasn't interested. His main concern was employment & references. Believe it or not, I'm now paying $500 less for an entire house in a nice neighborhood than I paid for my crappy condo with sketchy neighbors.
  10. AnonEMouse

    AnonEMouse LoanSafe Member

    We are coming up on the second anniversary of our foreclosure.

    Since the foreclosure we've had to rent two out-of-town apartments for our college age children. Neither property management company had an issue with the foreclosure. Our current mortgage payment *plus* the rent on two apartments is still less that our foreclosed places' mortgage payment.

    We also had to co-sign a revolving credit account for one child to buy a new set of tires; and when I asked the credit manager about my score he said I was at 840 through Equifax.

    No regrets.

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