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Old 07-23-2009, 09:04 AM
 
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Default Renting a house after filing Chapter 7

Has anyone had the experience or know how it works when you have filed Chapter 7 and need to rent a home? My husband and I are considering filing and we can't seem to find any resources on what can happen to our ability to rent a house. We have 2 small children, so this is keeping me up at night!
We are already 4 months late on our mortgage, and it's in 'modification' right now... so a temporary stay of eviction... but if we file Chapter 7 the property will be forfeited and we'll need a place to live!
Any advice will be much appreciated... judgements can be kept to yourself
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Old 07-23-2009, 09:15 AM
 
Location: Southwest Missouri
1,921 posts, read 3,981,893 times
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Rental policies will vary significantly, so there isn't a concrete answer. I'm not sure where you live, but in areas with high vacancy rates, landlords are more willing to overlook a black mark like bankruptcy.

If I were in your position, I'd look at some rentals that meet your needs and talk with the leasing agency or property owner to see if they'd rent to you under the circumstances that you mentioned.
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Old 07-23-2009, 09:19 AM
 
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For me (as a private landlord) it would depend on why you filed bankruptcy. If it was because you were financially irresponsible, such as buying a house out of your price range, using one of the ubiquitous unreasonable mortgages so common in the housing boom, I'd refuse you.

If it was for a good reason, such as an unexpectedly large medical bill that you couldn't pay, I'd consider you as a tenant.
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Old 07-23-2009, 09:43 AM
 
15 posts, read 37,505 times
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Quote:
Originally Posted by Mercury Cougar View Post
For me (as a private landlord) it would depend on why you filed bankruptcy. If it was because you were financially irresponsible, such as buying a house out of your price range, using one of the ubiquitous unreasonable mortgages so common in the housing boom, I'd refuse you.

If it was for a good reason, such as an unexpectedly large medical bill that you couldn't pay, I'd consider you as a tenant.
Thank you for taking the time,
We're in this situation because of the economy... my husbands company downsized, dissolved his position, cut his pay back, cut his hours way back, eliminated all overtime, and changed the way they pay him for travel, so that it does not accumulate hours, but is a flat rate...

After 7 months of scraping by... we aren't scraping by anymore! Savings is gone, and most of our cards are close to maxed out.

I have a small business, and it's suffering as well. I'm disabled so I can't go back to the job I have experience in, and honestly any job I could get, wouldn't cover the childcare expenses on 2 toddlers!

We have clear rental history, and until this current crisis we had very good credit (750+)

So do you think we should just tell the potential landlord what happened?

Should we OFFER to pay a bigger deposit, or wait for them to ask us to?

Thanks again for taking the time!
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Old 08-15-2009, 07:32 AM
 
328 posts, read 529,756 times
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I would not rent my home to a person who filed bankruptcy. It tells me that you do not take responsibilty for your actions. I have encountered too many people who ran up their credit cards, bought cars they could not afford and now they want a bailout. "It's not my fault because I lost my job". Are you kidding me? At one time, I had a car loan and credit card debt that totalled $30,000; I paid it off because no one put a gun to my head to make those purchases. I made huge sacrifices to accomplish this. What has happened to our values? This deeply concerns me. We all make bad choices from time to time but how we deal with them detemines real character. The exception would be serious illness.

Yes, I am judging you. What makes you so special? I paid the debt I incurred due to my stupidity and you should do the same.
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Old 08-15-2009, 07:45 AM
 
21,343 posts, read 34,040,569 times
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In most states there are no laws that give any special protections to those who have filed bankruptcy and want to rent, nor are there are restrictions preventing landlords from using this information.

Thus it would be entirely reasonable to think that SOME landlords will flat out not rent to the OP, while others might determine that the added RISK can be offset by higher rent and/or larger deposits. This should not be a surprise. There are also used car stores that will finance ANYONE for a high enough rate, and firms that will give a SECURED credit card to anyone willing to lock a big enough deposit in / pay high fees.
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Old 08-15-2009, 08:35 AM
 
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Quote:
Originally Posted by homeowner35 View Post
I would not rent my home to a person who filed bankruptcy. It tells me that you do not take responsibilty for your actions. I have encountered too many people who ran up their credit cards, bought cars they could not afford and now they want a bailout. "It's not my fault because I lost my job". Are you kidding me? At one time, I had a car loan and credit card debt that totalled $30,000; I paid it off because no one put a gun to my head to make those purchases. I made huge sacrifices to accomplish this. What has happened to our values? This deeply concerns me. We all make bad choices from time to time but how we deal with them detemines real character. The exception would be serious illness.

Yes, I am judging you. What makes you so special? I paid the debt I incurred due to my stupidity and you should do the same.
Not that you deserve a response... but I am disabled. I stated that.

We didn't run up cards, or buy ANYTHING that we couldn't afford. READ the post.

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Old 08-15-2009, 09:08 AM
 
Location: southwestern PA... where the nest is now empty!
10,632 posts, read 12,084,729 times
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Unless you show that your financial situation has greatly improved, I would not rent to you either.

You already left one landlord being owed money... I would not want to be the second!
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Old 08-15-2009, 09:13 AM
 
328 posts, read 529,756 times
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Hmm. I guess my heart has hardened over the years. You have two toddlers and a small business. You have accomplished quite a bit inspite of your disability. It does not sound like a hinderance to me. The point is the economy is not a valid excuse. The economy allowed people to live beyond their means and no one wants to pay now that the well has run dry. Job loss is not a new concept.

Working class people have been dealing with these struggles long before the economic decline. I never heard of them filing for bankruptcy. It is the middleclass who constantly does this and it is wrong. Again, what makes you so special?
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Old 08-15-2009, 09:17 AM
 
15 posts, read 37,505 times
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Quote:
Originally Posted by Pitt Chick View Post
Unless you show that your financial situation has greatly improved, I would not rent to you either.

You already left one landlord being owed money... I would not want to be the second!
We haven't left a landlord being owed money... we're facing forclosure...

What do people who get foreclosed on do then? There's like hundreds of thousands of people who have been forclosed on, or will be this year.

Our financial situation will be what it is now, when we go to rent...plus having chapter 7 (or in the process of) or a foreclosure on our credit.

Hence WHY we will be needing to rent.

It can't REALLY be this difficult. Can it?

If I was renting to people, I'd want to know that they paid too... but there are circumstances that happen to financially stable people, that are totally out of their control. Those people still need a place to live!

Even Donald Trump has filed bankruptcy!
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