Rental Basics in 60563>Question Details

J, Renter in Naperville, IL

I filed banruptcy in 2010. Can I get a townhome or condo for rent ranging from 800-1000? My wife has excellent credit but no income yet or can I buy

Asked by J, Naperville, IL Tue Feb 7, 2012

a town home. Also preferably a place in Naperville . What are my options for the rentals for rentals and is it better to buy or rent?

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It depends on when in 2010 you declared bankruptcy and if you filed chapter 7 or 13. If 2 years has gone by the possibility exists that you may get approved for a mortgage if you otherwise qualify. Have you re-established any credit? This is key to getting approved post BK.
Lenders will look at both borrower’s credit and income. As a married couple your BK will reflect on her and without her having established employment she won't likely qualify without your income.
Ultimately it will come down to applying with a good local lender and seeing what may be possible. You can start with your own bank, but share with the loan officer your circumstances. When I was an Loan Officer I kept close track of my lenders requirements and wouldn't have you apply if I already knew you couldn't meet the guidelines. But I did then review the steps necessary to help a borrower qualify sooner. Talk to a lender and see what may be possible.
As to renting, each landlords sets their own guidelines as to what they feel is acceptable credit. There are many renters out there with BK's & Foreclosures right now so there are landlords willing to rent to tenants with credit issues. Some may require a larger deposit and a letter of explanation of what caused your credit problems and some assurances it won't happen again.
2 votes Thank Flag Link Tue Feb 7, 2012
Dan is correct. Most lenders will require 2 years after the bankruptcy has been discharged (DISCHARGED, not filed). During that time, you should be working on rebuilding your credit. I know several people who have recently gone through bankruptcy and ahve 700 credit scores again already.

Speak with a local lender about what their requirements are and give them the basics of your situation. They should be able to hep you with more detailed information.

Best of luck.
1 vote Thank Flag Link Tue Feb 7, 2012
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