NBR: has anyone been through a foreclosure and bankruptcy?

DestinationWeddingKeyWest · August 2010

It's a long story but the Obama plan basicly is forcing us to lose our home instead of keep it. I am due in 9 weeks and starting to freak out. The few rental houses I have contacted said they wouldnt rent to someone with a bankruptcy. Does anyone have advice? We both have jobs and make more than enough to pay the rent but I'm worried no one will give us a chance since most of the houses are rented through agencies with all of these rules. Thanks for any info you have.

sommerrayne · August 2010

I've never been through either but in housing situations you can offer them other solutions and if its an individual person (not prop management company) you can almost always work something out. Like 1st, last, deposit + 1 extra month of rent. That gives them a 2 month buffer in their brain.

I'd also look up renter's rights and discrimination when it comes to bankrupcy and if you even need to disclose it (I guess if they run a credit check it would show up huh?) or if you have protections there.

DestinationWeddingKeyWest · August 2010

sommerrayne:
I've never been through either but in housing situations you can offer them other solutions and if its an individual person (not prop management company) you can almost always work something out. Like 1st, last, deposit + 1 extra month of rent. That gives them a 2 month buffer in their brain.

I'd also look up renter's rights and discrimination when it comes to bankrupcy and if you even need to disclose it (I guess if they run a credit check it would show up huh?) or if you have protections there.

Good ideas! Thanks

sommerrayne · August 2010

I'd also have no problem pulling out the "Listen Mr. Smith, I really understand your apprehension with renting to someone with such a blemish on their record but we're a married, securly employed couple with every positive reference you could ever want. I'm 8 months pregnant and so you're not talking to someone who is a partying crazy college student who is going to trash your place. I'm looking to live in a home and make it my home and treat it with the utmost respect. I'm willing to do whatever I have to to prove to you the character my husband and I posess." card.

People are quick to answer NO to a "will you rent to someone with a bankrupcy?" question because that's not a PERSON that's an action they're reacting to. Pull out the personal card and implore their assistance.

Good luck!

DestinationWeddingKeyWest · August 2010

sommerrayne:
I'd also have no problem pulling out the "Listen Mr. Smith, I really understand your apprehension with renting to someone with such a blemish on their record but we're a married, securly employed couple with every positive reference you could ever want. I'm 8 months pregnant and so you're not talking to someone who is a partying crazy college student who is going to trash your place. I'm looking to live in a home and make it my home and treat it with the utmost respect. I'm willing to do whatever I have to to prove to you the character my husband and I posess." card.

People are quick to answer NO to a "will you rent to someone with a bankrupcy?" question because that's not a PERSON that's an action they're reacting to. Pull out the personal card and implore their assistance.

Good luck!

Yes that's true. My Mom said to bring our 19 month old as she also helps us to look "trustworthy". I just hope she behaves herself! I'll give anything a try it just adds so much anxiety when we get turned down. I don't know how much more I can take and it's not good for the baby either.

sommerrayne · August 2010

Where are you looking?

sommerrayne · August 2010

Here are some links - I skimmed so I'm not sure they're stellar but look like they have info:

https://www.rentafterbankruptcy.com/

https://thriveafterbankruptcy.blogspot.com/

https://www.bkforum.com/showthread.php?t=10652

Google "renting after bankrupcy" - you'll get a lot of info!

DestinationWeddingKeyWest · August 2010

South King co or Pierce (Auburn, Kent, Fed Way, Tacoma).

DestinationWeddingKeyWest · August 2010

sommerrayne:

Here are some links - I skimmed so I'm not sure they're stellar but look like they have info:

https://www.rentafterbankruptcy.com/

https://thriveafterbankruptcy.blogspot.com/

https://www.bkforum.com/showthread.php?t=10652

Google "renting after bankrupcy" - you'll get a lot of info!

Thank you SO much! I must have googled the wrong phrase.

husky422 · August 2010

as a landlord, i would def be apprehensive to rent to someone with a foreclosure or bk. i just had a nightmare situation with someone with shaky credit. BUT if you were able to provide paystubs, payment history/credit report, i'd be willing to hear you out.

also the rental agencies are acting on behalf of the landlord so they'll run it by the owner...the owner has the ultimate say.

is the rest of your credit good? sounds like you haven't lost the house yet? have you looked at your report...is it showing on the report...that'll make a huge difference.

good luck to you!

DAWNNA76 · August 2010

I dont have any advice but wanted to give you hugs as I know how frusterating it is dealing with your bank and the making homes affordable plan. we have been working and dealing and wanting to kill our lender as well. talk about jumping through hopes and no one listening and to make it worse being talked down to by the people at the bank that our supposed to be trying to help you.

just remember this will make you stronger! you will get back to a place that your better off. this to will pass.

DestinationWeddingKeyWest · August 2010

husky422:

as a landlord, i would def be apprehensive to rent to someone with a foreclosure or bk. i just had a nightmare situation with someone with shaky credit. BUT if you were able to provide paystubs, payment history/credit report, i'd be willing to hear you out.

also the rental agencies are acting on behalf of the landlord so they'll run it by the owner...the owner has the ultimate say.

is the rest of your credit good? sounds like you haven't lost the house yet? have you looked at your report...is it showing on the report...that'll make a huge difference.

good luck to you!

No it hasn't gone through yet. We are moving out a month before we actually surrender the house because I don't want to move 2 weeks after a c-section and with a nb. I would rather just be settled and bring the baby home. I doubt the foreclosure or the bankruptcy will show up but I thought it would look more responsible that we are actually paying off our debts rather than letting them sit. We are trying to become debt-free at some point and this seemed like the only way. Since we make a good income we are receiving very little discount through the bankruptcy. To be honest our credit started declining when we bought the house. It was great prior to that but we got into a bad mortgage. This seemed a good time to just get out and try to start fresh...for our daughter's sake. Should we just not mention anything and let them run the credit? I just don't want to seem dishonest...OR put out lots of wasted money on credit checks. We can show proof of income and job stability though. I was not aware that they run it by the owners, that is good info to have.

DestinationWeddingKeyWest · August 2010

DAWNNA76:

I dont have any advice but wanted to give you hugs as I know how frusterating it is dealing with your bank and the making homes affordable plan. we have been working and dealing and wanting to kill our lender as well. talk about jumping through hopes and no one listening and to make it worse being talked down to by the people at the bank that our supposed to be trying to help you.

just remember this will make you stronger! you will get back to a place that your better off. this to will pass.

THanks for the kind words. I know we will ultimately be ok...someone will want our money!! But just some advice to you as well, if you are working on the Obama plan, make sure to set aside the remainder of your mortgage during the trial mod period. If you get declined (usually for stupid reasons, and for us they strung us along for a year+) they want the difference paid immediately and your account is automatically put into default for being X number of months behind...even if you paid the modified amount on time every month. No one told me that part.

Seattle_JiLLn · August 2010

If none of it is on your credit report yet, then by all means just rent the house and let them run the report and show that you're ok. You know you will pay the rent. I dont' see why it's any of their business if your current credit report runs well.

I just saw a thing on TV about "short refinancing" - like instead of doing a short sale on your house and having to move, you basically short sale it back to yourself and refinance at a lower price point just like anyone who would be buying the short sale would do...

xosheenaox · August 2010

I'm going through the whole foreclosure bit right now. We bought 6 years ago the intrest rate was high our payments were $1900 on our house (nothing fancy or nice) in a very crummy area but at the time it's the only thing we could afford. We looked in to refinacing and no one would work with us because our house value went down 65k. Talked to 4 real estate agents their advice was to just let it go not to even bother with trying to short sell.

A few people we talked to about renting were a bit put off by our situation even though we make a decent amount of money my dh has had his same job 11 years and I have for 8. Thankfully though a house in my parent's neighborhood was for sale and has been on the market for 8 months and I asked them if they'd be willing to rent it out. You're not technically suppose to rent in this neighborhood, but since everyone knows me it's alright. The family we're renting from had gone through forclosure a few years back so they were ok with everything. We move in Sept 1st and our monthly payment is $1,100 so an $800/ month. This house is in a nice community and the house is bigger then what we're currently in and if we want to buy it later on down the road (when we're able to) we can.

I'll keep my fingers crossed for you. Have you checked craigslist listings for rentals that's where I was looking and I saw a fair amount of places that were willing to work with people who have forclosure/bankruptcy.

DAWNNA76 · August 2010

DestinationWeddingKeyWest:
DAWNNA76:

I dont have any advice but wanted to give you hugs as I know how frusterating it is dealing with your bank and the making homes affordable plan. we have been working and dealing and wanting to kill our lender as well. talk about jumping through hopes and no one listening and to make it worse being talked down to by the people at the bank that our supposed to be trying to help you.

just remember this will make you stronger! you will get back to a place that your better off. this to will pass.

THanks for the kind words. I know we will ultimately be ok...someone will want our money!! But just some advice to you as well, if you are working on the Obama plan, make sure to set aside the remainder of your mortgage during the trial mod period. If you get declined (usually for stupid reasons, and for us they strung us along for a year+) they want the difference paid immediately and your account is automatically put into default for being X number of months behind...even if you paid the modified amount on time every month. No one told me that part.

I was told to expect that from someone else. We still havent even been given the modification yet. talk about them draggin thier feet! Now that Brian has gotten a job we probably wont qualify bythe time they get around to even sending us any paperwork to sign.

DestinationWeddingKeyWest · August 2010

xosheenaox:

I'm going through the whole foreclosure bit right now. We bought 6 years ago the intrest rate was high our payments were $1900 on our house (nothing fancy or nice) in a very crummy area but at the time it's the only thing we could afford. We looked in to refinacing and no one would work with us because our house value went down 65k. Talked to 4 real estate agents their advice was to just let it go not to even bother with trying to short sell.

A few people we talked to about renting were a bit put off by our situation even though we make a decent amount of money my dh has had his same job 11 years and I have for 8. Thankfully though a house in my parent's neighborhood was for sale and has been on the market for 8 months and I asked them if they'd be willing to rent it out. You're not technically suppose to rent in this neighborhood, but since everyone knows me it's alright. The family we're renting from had gone through forclosure a few years back so they were ok with everything. We move in Sept 1st and our monthly payment is $1,100 so an $800/ month. This house is in a nice community and the house is bigger then what we're currently in and if we want to buy it later on down the road (when we're able to) we can.

I'll keep my fingers crossed for you. Have you checked craigslist listings for rentals that's where I was looking and I saw a fair amount of places that were willing to work with people who have forclosure/bankruptcy.

Oh good, that makes me feel better. I can't imagine that this situation is all that uncommon these days and I'm also betting that we are the few that are willing to pay more for the rental houses...others are either buying low right now or already settled. I agree, there are some really beautiful houses for rent for the amount we want to spend. Much nicer than our house now. I have checked Craig's list, which is where the few "no's" have some from. But we havent met in person or anything, just emails.

xosheenaox · August 2010

I know before we found our rental my mom told me to let any landlord know that she would be willing to sign something saying if for some reason we couldn't pay rent that she would. Not that it would ever be the case, but she thought it might help. Just another idea

DestinationWeddingKeyWest · August 2010

DAWNNA76:
DestinationWeddingKeyWest:
DAWNNA76:

I dont have any advice but wanted to give you hugs as I know how frusterating it is dealing with your bank and the making homes affordable plan. we have been working and dealing and wanting to kill our lender as well. talk about jumping through hopes and no one listening and to make it worse being talked down to by the people at the bank that our supposed to be trying to help you.

just remember this will make you stronger! you will get back to a place that your better off. this to will pass.

THanks for the kind words. I know we will ultimately be ok...someone will want our money!! But just some advice to you as well, if you are working on the Obama plan, make sure to set aside the remainder of your mortgage during the trial mod period. If you get declined (usually for stupid reasons, and for us they strung us along for a year+) they want the difference paid immediately and your account is automatically put into default for being X number of months behind...even if you paid the modified amount on time every month. No one told me that part.

I was told to expect that from someone else. We still havent even been given the modification yet. talk about them draggin thier feet! Now that Brian has gotten a job we probably wont qualify bythe time they get around to even sending us any paperwork to sign.

It's just not fair. Their "out" with us was that since our 2nd was sold to another company...by them mind you...they would no longer count that portion toward our mortgage payment which put us under the 30% mark (we had a 80/20 loan). How stupid is that? It's a government program but they are making their own rules. They counted it in the beginning when we started the mod so why all of a sudden it doesn't count I don't know.

SeaMama · August 2010

DestinationWeddingKeyWest:
It's a long story but the Obama plan basicly is forcing us to lose our home instead of keep it. I am due in 9 weeks and starting to freak out. The few rental houses I have contacted said they wouldnt rent to someone with a bankruptcy. Does anyone have advice? We both have jobs and make more than enough to pay the rent but I'm worried no one will give us a chance since most of the houses are rented through agencies with all of these rules. Thanks for any info you have.

Coming out of lurking to say Indifferent .

AnnetteWalker · August 2010

I am really late on this I know. But I wanted to say that DH and I have some rentals. And our last renters had a forclosure and we still rented to them. They were always late on making rent but that is not because of their forclosure.

My DH is in real estate and pretty much as long as the person is up front about the forclosure to us and kind of what happend then we are ok with it.

We put our place on Craigs List when it is available. Have you tired looking there for rentals that are not thru rental companies?

Our place is for rent starting 1 Sep but we are up north in Lake Stevens.

DestinationWeddingKeyWest · August 2010

AnnetteWalker:

I am really late on this I know. But I wanted to say that DH and I have some rentals. And our last renters had a forclosure and we still rented to them. They were always late on making rent but that is not because of their forclosure.

My DH is in real estate and pretty much as long as the person is up front about the forclosure to us and kind of what happend then we are ok with it.

We put our place on Craigs List when it is available. Have you tired looking there for rentals that are not thru rental companies?

Our place is for rent starting 1 Sep but we are up north in Lake Stevens.

I have been looking, seems like the majority of houses are with rental companies, but maybe that's because I am looking at the newer houses. I bet they were never sold and were handed over to the rental companies to bring in some money. We just decided all of this a few days ago so we are early into the process but I didn't realize how hard it would be. There is a house that looks PERFECT for us and I just emailed the owner a little about us and our situation but she said she had a ton of responses so I already feel a bit disappointed. Thanks for the info about your place, Lake Stevens would be quite a commute though!

Thanks everyone for all of your advice!!!

Mrs.Kiltlifter · August 2010

SeaMama:
DestinationWeddingKeyWest:
It's a long story but the Obama plan basicly is forcing us to lose our home instead of keep it. I am due in 9 weeks and starting to freak out. The few rental houses I have contacted said they wouldnt rent to someone with a bankruptcy. Does anyone have advice? We both have jobs and make more than enough to pay the rent but I'm worried no one will give us a chance since most of the houses are rented through agencies with all of these rules. Thanks for any info you have.

Coming out of lurking to say .

Uh yea Indifferent A government bailout plan does not excuse purchasing a home beyond your means and not making payments over a period of time or falling behind on your mortgage.

DestinationWeddingKeyWest · August 2010

Mrs.Kiltlifter:
SeaMama:

DestinationWeddingKeyWest:
It's a long story but the Obama plan basicly is forcing us to lose our home instead of keep it. I am due in 9 weeks and starting to freak out. The few rental houses I have contacted said they wouldnt rent to someone with a bankruptcy. Does anyone have advice? We both have jobs and make more than enough to pay the rent but I'm worried no one will give us a chance since most of the houses are rented through agencies with all of these rules. Thanks for any info you have.

Coming out of lurking to say .

Uh yea A government bailout plan does not excuse purchasing a home beyond your means and not making payments over a period of time or falling behind on your mortgage.

Well I wasn't behind until the plan told me to start making modified payments and didn't mention that if I was declined those payments would automatically be counted as delinquent and I would be put in default. They are also supposed to have their paperwork and decision made in 3 months...they took 13 months for me so the "past due" was $18,000. If we had not applied for the program we would still be fine and not losing our house. If you look online the program has major flaws. I applied in the first month it was rolled out so I didn't know at the time.Only 2% of those who apply are being approved. So, no, it does not excue anything but it certainly is being run poorly and in my case, it did cause me to lose my house. And as far as buying a house beyond your means, people's "means" change for many reasons out of their control. Thanks for the supportive words though. Not what I needed.

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