Rent or Lease with good income and fair but a foreclosure on my credit history

Status: Open
Sep 01, 2016 Views1,230 Answer a Question

Hello,

I am needing to move closer to work, in Sugar Land, but I have a foreclosure on my credit. I am divorced and trusted my ex to make the mortgage payments on our house together and even though I was helping pay the mortgage she let it get into foreclosure without letting me know. I have deeded the house to her and she has filed bankruptcy, but the foreclosure will remain on my account for a while. I have already been denied once at an apartment and don't want to risk losing an application fee on another. My gross income is more than 6 times the rent I am looking for and credit score is fair, mid 600's. Is there anyway I can lease a house or apartment?

Asked by
Consumer
Categories:
Relocation & Newcomer
About 6 years ago
Hello Paul

Before you submit the application fees, do bring it up to the landlord and ask if they will consider leasing a house. I am a landlord and a realtor. You can also draft a letter explaining your situation and submit to landlord or landlord agent. Many landlords are fine to lease a house with one month extra security deposit on top of regular security deposit if you are meeting income and other requirements.

Purvi Shah
Realm Real Estate
832-561-0691
About 7 years ago
As a landlord and property manager myself, I have leased to tenants with both bankrupcy and foreclosure. One key thing is your ability to give more security deposit and how you relate to your landlord: be upfront and nice with him, it is always the best route. I have had applicants tried to hide things from us and when we discover it, it brings a red flag.
What price range are you looking at?
Best of luck
About 7 years ago
You are the exact kind of tenant I look for. But I only have houses. You need a landlord who has been one for a long time. If you are getting rejected, it's because you have a newbie landlord or your realtor isn't trying to get your application pre-screened before forking over the fee. You shouldn't have to pay any app fee unless it's on the place which accepts you

J. Lindsey | A Real Estate Broker
About 7 years ago
Hi Paul,

Please, please, please work with a realtor to get a complete application filled out, including any known reasons for items that will come up in a background check and/or credit screen! If your realtor knows your situation, he/she can explain this to the landlord's agent and there is no doubt you will be able to qualify for a property making six times the monthly rent (as long as you have verifiable evidence to support the income, of course)!

The only hiccup I see is a landlord that actually sets forth a policy that they don't rent to anyone with a foreclosure history in the last X years. Most don't, though. Most landlords factor in the whole pictures, which is the reason you should be up front about everything (especially if the issue is foreclosure and you made all payments on time up to that point and everything matches up with the divorce and the foreclosure). There is a chance they will ask for extra deposit, but that's normal. Ninety-nine percent of Landlords will require background and credit. Just know that this is the reason you are up front about any hardships you have come across lately. It is better to explain this ahead of time, before the landlord has to ask questions about it. I have helped several families who had experienced hard times secure leases b/c everything was laid out on the table!

I hope this was helpful. Please let me know if I can be of further assistance!

Darby Grimmett / KW / darby@darbygrimmett.com / 936-827-9217
About 7 years ago
I have had clients in the past find a landlord who will look past a foreclosure (even a bankruptcy), especially with extenuating circumstances - it is truly a case by case basis and up to the landlord's discretion. Be upfront whether looking for a home, town home or apartment to lease prior to paying an application fee. If you are currently renting, I have had clients provide a letter from their current landlord addressing their timeliness of rent payments and experience as a tenant. The offer of automatic withdrawals for rent payments, additional security deposit etc may also influence a decision. Many apartments are owned by corporations and they have to abide by the corporate office criteria. A rental of a home or town home, may provide a more sympathetic landlord. If you are not already working with a Realtor, I would highly recommend finding one who services the area you are looking to lease. A Realtor can be a valuable advocate on your behalf when looking to privately lease - there is also no cost to you as a tenant if you use a Realtor. Likewise, if you are wanting to specifically rent an apartment, an apartment locator may save you some time and headaches. Best of luck!
About 7 years ago
Hi Paul: a foreclosure is one of those credit marks that will follow you for a very long time and one that many landlords/apartment managers look at as a deal-breaker. I would suspect applications at apartment complexes will yield you more rejections than not. If I were you, I'd focus more on renting a house, being upfront and candid about your situation and deal directly with the decision maker. You may have to accept a higher deposit or more stringent clauses in your lease, but I'm sure you have options. Good luck and let me know if I can help further.

Kevin Tran
Realm Real Estate Professionals
832.359.2828
kevinttran@hotmail.com
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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