Minlwfl, Renter in Indianapolis, IN

What can I expect in the Indy rental market, coming out of chapter 7 & foreclosure within the past 2 years due to job loss? 625 credit score

Asked by Minlwfl, Indianapolis, IN Wed Nov 30, 2011

currently Relocating due to job offer, $80K/yr., starting over... rebuilding my credit and life... executive position

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We screen with the 3C's in mind - Capability, Colateral and Character.
CAPABILITY - Do you have verifiable employment and enough income. This is simple and generally easy to confirm with a paystub and a phone call or two. We like to see 3x the monthly rent in gross income.
COLATERAL - This is the security deposit. This is another easy one.
CHARACTER - This is trickier. The idea here is just because a person can pay doesn't mean they will pay. And just because they can pay now doesn't mean they can later. Some people live tumultuous lives and find themselves in financially difficult situations way too often. The typical way for a landlord to judge the character/"likelihood that you will pay" is using a credit score. So, put yourself in the position of a landlord who is trying to figure out if you are going to pay consistently or not. If you can explain that you lost your job and went through a bankruptcy and foreclosure and that was only an aberration then that will go a long way towards showing you that you will pay reliably. Looking at a credit report I look for a string of 1's like this "11111111111111111". This is the part of the credit report that indicates the payment pattern. 1's mean paid on time and each one represents a month that the payment was paid on time. A 2 means 30 days late. A 3 means 60 days later. The worst is a 5. So a credit report with a bunch of 5's is not good. I commonly see many items with a string of 1's and one creditor with a string of 5's. This usually means the tenant was paying everything on time except that one creditor. That's generally a good sign. That means the tenant has a habit of paying on time but had to make a hard choice and neglect one creditor. I also often see medical bills with a string of 5s. I tend to discount this problem since a medical bill is not typically something the person chose. A little pet peeve of mine is when I see an unpaid bill in collection for a small amount like $34 for the library for example. Only one of these is likely an oversight but when I see a bunch of them it implies that the tenant chose to not pay them. At our agency we require a minimum 500 credit score. But, just because your credit score is above 500 doesn't guarantee we will accept you. That is just a threshold. Any credit score below that is automatically rejected. Applications with credit scores above 500 are 'scored' using our inhouse scoring system so that we are consistent and even-handed and to avoid any accusations of fair housing law violations.
0 votes Thank Flag Link Mon Dec 12, 2011
We have many home in the Indy area that we rent to good people that have had a rough time over the last few years. We can also work with you on a rent to own or lease option. Would love to discuss your housing needs.
Please contact me Scott Lubert at KR Inspired Properties 317-564-4220.
0 votes Thank Flag Link Wed Nov 30, 2011
I would recommend looking into private owner homes over full service apartment companies. A private landlord has more flexibilty to work with a renter. As a landlord myself I do not put much weight on credit score and past as I do making sure income is greater than expenses. With taking an $80k job you should have lots of options.

Do you know where you would like to be? Have you looked at anything yet?

James Metro
317 730 0009 call or text
0 votes Thank Flag Link Wed Nov 30, 2011
Your first step is deciding whether to rent a home or an apartment. If owning is not right today consider the following:

Advantages of Renting:
• You usually pay less.
• You don’t have to pay maintenance costs.
• You have little financial risk. Current market conditions and the cost of mortgage money do not affect the renter.
• It is easier to move as job requirements, family needs, or income change.
• You avoid the cost of selling and buying when you do move.
• You may get access to special services and facilities at little or no extra cost.

Disadvantages of Renting:
• Your community may have little or no satisfactory rental property.
• You don’t get the tax advantages of owning.
• You cannot get your monthly payments back as homeowners do if they sell a home for a profit.
• Your landlord may raise your rent or not pay the mortgage if you rent a home.
• You are not free to do whatever you want to do both inside and outside of the dwelling.

Know what you want and can afford. Your total monthly housing costs—rent, furniture, utilities, telephone, maintenance fees, insurance, and personal property taxes— should not exceed 25 to 30 percent of your monthly take-home pay (approximately one week’s take-home pay)

The following information lists the rights and duties between a landlord and a tenant. [Note: This information does not apply to government-subsidized housing or to commercial rental units.]

Landlord’s Obligations to You
• Comply with all current building and housing codes.
• Make all repairs and do whatever is necessary to put and keep the premises in a fit and habitable condition.
• Keep all common areas of the premises in a safe condition.
• Maintain the rental unit in good and safe working order and promptly repair all electrical, plumbing, sanitary, heating, ventilating, air conditioning, and other facilities and appliances provided and required to be provided by the landlord.
• Perform any other duties required by your rental agreement.
You must notify the landlord about needed repairs in writing, except in emergency situations.
Your Obligations to the Landlord
• Pay your rent and do other things required by your rental agreement.
• Keep the premises as clean and safe as the condition of the premises permits.
• Dispose of all ashes, garbage, and other waste in a clean and safe manner.
• Keep all plumbing fixtures in the rental property as clean as their condition permits.
• Do not deliberately or negligently damage or remove any part of the premises or knowingly permit anyone else to do so.
• Comply with all obligations imposed on you by current building and housing codes.
• Be responsible for all damage or removal of property, except if it is due to normal wear and tear, acts of the landlord or his agent, defective products supplied or repairs authorized by the landlord, acts of people who are not guests of the tenant, or natural forces.
• Move out at the end of the term.

Your landlord must notify you in writing of any breach of these obligations, except in emergency situations.

• Keep your relationship with the landlord business-like by reporting all problems as they occur even if you are at fault.
• Place all your communications to the landlord in writing.
• Keep a copy of your letters and receipts.
• Demonstrate your good faith by paying your rent and utility bills on time.
• Insure that your family, friends, and pets do not abuse the property or the rights of other tenants.
• Keep the property clean.

• Give proper and legal written notice in advance
• Leave the property clean and in good condition
• Complete a security deposit checklist.
• Return all keys and leave a forwarding address so you have a reputation for good service.

PS: Conversely, your obligation to pay the full amount of rent depends upon the landlord’s obligation to provide a fit place to live. However, you may withhold rent only with court approval.
0 votes Thank Flag Link Wed Nov 30, 2011
Jamie Willis
Irvington, IN
Hi, and congrats on getting a new job! There are lots of rentals here in Indy -- where were you planning to live? Did you want to rent an apartment or a home? Downtown rentals for 2 bedrooms are in the 900-1000/mo range. You can find homes for about the same price not far from downtown. You should have no trouble renting with your credit score as long as you can prove gainful employment.

That said, there is no better time to buy a house (though I can imagine why you'd be a bit gunshy after your foreclosure). Housing prices are extraordinarily low in the Indy metro area right now. If you change your mind about buying, I'd love to talk with you about your options. There are many terrific homes in the Indianapolis area that will fall within your budget.
Feel free to call me at 812 361 8302.
Best of luck, Jamie Willis, Realtor.
0 votes Thank Flag Link Wed Nov 30, 2011
Hi, thanks for posting your question. A lot of renters have the same question. Your credit score is going to help you. Be prepared to write a letter of explanation about the bankruptcy, and have a copy of the discharge papers to prove that it can't be reopened so your landlord can't be included in it. Also, be prepared that some landlords may ask for a higher deposit.

I manage a number of properties and I can tell you that one thing we look for on your credit, past or present are judgements or liens or charged off items directly related to your ability to rent a property...meaning, do you have a judgement from a former landlord? Do you have a utility company that has charged off an account or put a lien against you? They will be less concerned about the foreclosure than seeing an eviction judgement against you.

Keep in mind, landlords know that renters are renting for a reason...either relocation or poor credit, so they're not looking for perfection, just disclosure and honesty. Good luck in your search and let me know if I can help!

Amber Patterson
F.C. Tucker Company
0 votes Thank Flag Link Wed Nov 30, 2011
It all depends on what you have been doing financially since you were released. We currently have a home available in Broad Ripple, a condo near Eagle Creek, a condo near Hazel Dell and 146th and will soon have a large home at 71st and Johnson for lease. Would be happy to talk with you.
0 votes Thank Flag Link Wed Nov 30, 2011
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