Unfortunately, many homeowners are having their homes foreclosed leaving them to rent. Having a past foreclosure can make renting hard because landlords fear you might become late on the rent. Fortunately, you can still rent after a foreclosure.
Find No Credit Check Apartments
Large apartment complexes are typically owned by companies that have strict approval criteria. You're more likely to get a credit check at one of these complexes (and denied if you have a foreclosure) so don't apply there.
Instead, look for houses, condos, townhomes, duplexes, and small apartment buildings that are owned by a single landlord. These types of landlords are less likely to do credit checks. Look for these types of apartments advertised in these places:
- local newspaper
- friends and family
Pay a Higher Deposit
Money talks. If you're able to pay a higher security deposit it may help you get into an apartment. Giving your landlord a high deposit lets them know you're serious about paying your rent. Not only that, a higher deposit lets the landlord cover losses if you decide to break your lease without notice. But, that doesn't mean you can skip a few months of rent. You're still responsible for paying your rent on time each month, unless your rental agreement says otherwise.
Rent Before It Hits Your Credit
If you apply for an apartment before the foreclosure is updated on your credit report, you have a better chance at getting approved. Timing it is tough since most people don't realize foreclosure is inevitable until it's happening.
Find a Co-Signer
You can get approved for an apartment, even one of the larger apartment complexes, if you have a co-signer or guarantor. Keep in mind your co-signer will be responsible for any unpaid rent or damaged done to the apartment when you move out.
Keep Paying Your Other BillsA foreclosure might set you back, but it won't ruin you, unless you let it. Continue paying your other bills. People with foreclosure often have more 90-day lates on their credit reports than those who haven't gone through foreclosure. Those late payments make you even riskier in the eyes of a landlord. If you can prove to a landlord that defaulting on your mortgage was an isolated incident, you may be able to rent despite your foreclosure.
"Don't ask, don't tell" is a good philosophy to follow when it comes to renting after foreclosure. However, lying about it will likely cost you a rental.
If you're asked if you've ever had a foreclosure, be honest. Explain the situation and focus on how you've turned your finances around. Make sure the landlord understands that what caused the foreclosure won't cause you to be late on your rent.