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Old 12-01-2010, 09:53 AM
 
2,153 posts, read 4,895,964 times
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Hi. I am currently in a situation where I am having to file bankruptcy and lose my house due to 2 horrible financial years and a divorce that is in process. I am wondering about renting an apartment after the bankruptcy is complete. How difficult will this be? I am able to get a co-signer if that is a necessity.

Any information would be helpful.

The reason I don't want to do the apartment before the bankruptcy is complete is that I was told I could probably get another 2 months out of this house before the bank forecloses on it due to them halting the foreclosure process during the bankruptcy process. Any thoughts?

Thanks for the help.
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Old 12-01-2010, 01:04 PM
 
10,139 posts, read 22,404,584 times
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Quote:
Originally Posted by bls5555 View Post
Hi. I am currently in a situation where I am having to file bankruptcy and lose my house due to 2 horrible financial years and a divorce that is in process. I am wondering about renting an apartment after the bankruptcy is complete. How difficult will this be? I am able to get a co-signer if that is a necessity.

Any information would be helpful.

The reason I don't want to do the apartment before the bankruptcy is complete is that I was told I could probably get another 2 months out of this house before the bank forecloses on it due to them halting the foreclosure process during the bankruptcy process. Any thoughts?

Thanks for the help.

If you are going to file anyway, you can probably get two years rent free if you play your cards right. State court foreclosure on the house takes 6 months almost everywhere. If you object, file papers, appear and ask for more time, appeal if a magistrate is assigned instead of a judge, etc. the process can take a lot longer. I have had foreclosures last 3-4 years where the debtor hasn't paid a dime except for legal fees. If you think about it, maybe a courthouse lawyer could keep you in your house for a while cheaper than rent.

As for the credit issue, that is totally a matter of local custom. Here in Cincinnati, Ohio no one cares a whit about bankruptcy filing unless you are going into HUD subsidized housing. If you have never been evicted from an apartment or committed a serious crime you are good to go. In NYC you can forget about it if you have a recent bankruptcy. So ask your local real estate lady or post this in the real estate forum and only pay attention to people who are in your local area.
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Old 12-03-2010, 03:28 PM
 
2 posts, read 19,455 times
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Keep in mind, an apartment owner/manager has two overriding questions regarding each applicant:
Will they be willing and able to pay the rent on a timely basis?
-and -
Will they keep the property in a reasonable condition?

I agree that the reaction to BK may vary a bit by location, but as a property owner, here are some tips I would suggest:
1. Disclose the BK and the reasons for it in your first contact with a new apartment owner.
2. Add any supplemental information to support the premise that you will not default again.
3. A co-signor would definitely be an added advantage.

My very first tenant in the first property I purchased had just recently completed a BK. The reason I decided to take a chance with them is that they were upfront and honest from the very first conversation. They also had valid reasons (emergency surgery for a newborn) for the BK beyond just getting over their head by being careless or reckless. There is nothing more aggravating to an owner than to hear an applicant say they have good credit, and then find out they declared BK the prior week!

BK does not have the "scarlet letter" branding that it had at one time, but it still can't be viewed as a positive fact. Just be direct and convince the new owner that you would be a good tenant.
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Old 01-28-2011, 02:53 PM
 
Location: Garland, TX
81 posts, read 271,596 times
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bankruptcy only affects your credit SCORE for 2 years after you file. Of course it will always be a part of your credit, but actually you are MORE likely to get credit after filing bc places know you cant file another Chapter 7 for 8 years.....
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Old 01-28-2011, 11:17 PM
 
70 posts, read 204,737 times
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Are you aware of the effects of filing bankruptcy? Then you have to know how a repayment plan works under bankruptcy. Once you know the types of bankruptcy and how personal bankruptcy works, it will be easier for you to plan in advance.

Last edited by Debtprophet; 01-28-2011 at 11:47 PM..
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Old 01-29-2011, 06:21 PM
 
5,470 posts, read 8,160,530 times
Reputation: 7284
Quote:
Originally Posted by bls5555 View Post
Hi. I am currently in a situation where I am having to file bankruptcy and lose my house due to 2 horrible financial years and a divorce that is in process. I am wondering about renting an apartment after the bankruptcy is complete. How difficult will this be? I am able to get a co-signer if that is a necessity.

Any information would be helpful.

The reason I don't want to do the apartment before the bankruptcy is complete is that I was told I could probably get another 2 months out of this house before the bank forecloses on it due to them halting the foreclosure process during the bankruptcy process. Any thoughts?

Thanks for the help.
I have no credit.

Don't want or need it.

So when they do the credit check... I show them my bank balance, and as a matter of course I pay a month in advance. (This way I never get late fees)

Never been a problem.

Cash solves all (Almost) problems.
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Old 02-01-2011, 01:42 PM
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690 posts, read 1,587,090 times
Reputation: 477
Quote:
Originally Posted by Themanwithnoname View Post
I have no credit.

Don't want or need it.

So when they do the credit check... I show them my bank balance, and as a matter of course I pay a month in advance. (This way I never get late fees)

Never been a problem.

Cash solves all (Almost) problems.
i agree. i don't have credit and prefer to keep it that way. i pay cash. if i don't have enough cash to buy something i don't need it. learned that the hard way.
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Old 02-03-2011, 01:06 PM
 
107 posts, read 189,813 times
Reputation: 120
It depends on the state you live in, the property management company rules, and the property manager (or in the case of a rental by owner, at owner's discretion).

I've worked for four different property management companies. Each one did it differently. One property manager had a rule that if the applicant was working with the creditors following a bankruptcy (proven with letters from creditors), she would give them a lease. The applicant still had to earn a high enough gross income to qualify whereby rent couldn't be more than 30% of gross income, that percentage may be different in your state.

Another property manager denied all applicants w/bankruptcies that were less than 7 years old, older than that and the bankruptcy was ignored, if they weren't in financial trouble again.

The very nice Section 8 complex (elderly/disabled) I worked at had very tough qualifications to get in and a 3 to 4 year waiting list, BUT she totally ignored bankruptcy, low credit scores, etc. even though we had to do one anyway. She figured..."that's why they need section 8, that's why we're here". But she had zero tolerance for convictions on criminal background checks. I don't know how old you are or what your income is, but some Section 8 places are very nice. There were retired pharmacists and lawyers living at the one where I worked.
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Old 02-17-2011, 10:56 PM
 
18 posts, read 17,504 times
Reputation: 15
Great... i think this would be fine renting after resolve your bankruptcy case. This could be turning point for your new life.
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Old 02-18-2011, 02:14 AM
 
Location: The North
4,962 posts, read 8,675,201 times
Reputation: 3831
Many larger complex landlords are practically marketing to newly minted BK cases. Think about it, most have a lower obligation load and can't get much in the way of credit extended. Not to mention most people are pretty ashamed of what happened and are diligent about it not happening again.

Once you get 3-4 years out it will be more closely watched. At that point you can get some credit, often at very high rates so they will be looking to see if you have fallen into bad habits again.
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