Rental Basics in Phoenix>Question Details

Lisa C., Renter in Peoria, AZ

How hard will it be for me to rent since Im facing forclosure?

Asked by Lisa C., Peoria, AZ Fri Oct 12, 2012

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Our investors will listen to your story, realizing sometimes people need a fresh start. If you let the landlord or investor know up front he or she won't need a lot of explanation when your credit report comes back.
0 votes Thank Flag Link Tue Dec 4, 2012
I worked with many renters that have some bumps on their credit and landlords are understanding with this potential challenge.
0 votes Thank Flag Link Fri Oct 12, 2012
Many Landlords rent to people that went through foreclosure and short sales. They know that there are so many people in this situation. The rest of your credit will be looked at to see if you are a risk to rent to or not.

Do talk to your attorney and tax accountant to see if short sale or foreclosure is the way to go in your situation. There are many programs that can help you and some of them may pay you to do a short sale. We have had several sellers get a large payoff at close of escrow to do the short sale. The last one was paid $25,000.

Best Regards,

Brenda

Ron & Brenda Cunningham
West USA Realty
602-980-3133

*** Recognized in the Phoenix Business Journal as "One of The Top 50 Realtors in the Valley"

Search the Official Active FlexMLS like a Realtor for FREE through our website at:
http://www.CunninghamHomesAZ.com
0 votes Thank Flag Link Fri Oct 12, 2012
I work with several investors. They will not disqualify a tenant based solely on a recent foreclosure. However, if the credit report shows collection accounts and/or multiple late pays, there will be a problem. Given the market we went through, it's understandable for people to have defaulted on their mortgages. It is not understandable, however, if a prospective renter bounced checks, couldn't pay his or her credit card, and let their cell phone go to collections. It depends on the individual situation.

If the only bad thing on a renter's credit is a foreclosure, I recommend that my clients move forward. If the credit report reveals a pattern of missed or late payments (except mortgage), I will recommend that my clients wait for a better qualified candidate.
0 votes Thank Flag Link Fri Oct 12, 2012
Lisa, I help renters every day. I wouldn't let the foreclosure stress you out. As others have said; that's a big part of the rental market now. Each landlord/management company will have their own criteria but many just want to see you don't have any judgements or evictions, that you make 3x the rent, don't owe any utilities money, and have money in savings. You can expect to pay 1.5x the rent as a refundable deposit; plus potentially let fees, admin fees, etc. and of course pro-rated rent for the month you move in. Are you looking to rent a house? An apartment? Either way; make sure you research the AZ Landlord Tenant Act so you know your rights! :-)
0 votes Thank Flag Link Fri Oct 12, 2012
Lisa--- I am hoping you reviewed if a short sale was an option prior to just letting it go to Foreclosure. Some of the lenders out there now are working hard to help homeowners avoid foreclosure. BofA is offering incentives over the HAFA $3000 up to $30000. I just received one of those higher incentive approvals for a client.

As for renting, as long as you have your deposits ready to put down and have approx 3 x the income for the rent, most landlords are not looking at foreclosures or short sales since those are the majority of the tenants currently! Expect up to 1 1/2 times the rent in deposits PLUS pet deposits which vary greatly by Landlord.

Good luck!
0 votes Thank Flag Link Fri Oct 12, 2012
Many people who have gone through foreclosure are currently renting. Most of the rentals out there will not disqualify you just because you went through a foreclosure. They will look at other things as well such as how much income you have and if you have anything in reserve. They are generally looking for household income at least three times the rent. They may also look at any other creditors that you have and whether you have made payments to them on time and how much you currently owe. They will probably check your criminal background as well to make sure that you don't have any major concerns in that area. It is possible that they may check other things as well but these are some of the common things that they check.
0 votes Thank Flag Link Fri Oct 12, 2012
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