Rent after short sale

Asked by FromW2S, Lake Dallas, TX Thu May 20, 2010

Last September we had to short our house and move to a different state. We rented the house before the short sale was final and the property manager did not do a credit report.
We are wanting to move to a new house/city this coming Sept when our 1 year lease is up. My question is how likely are we to be approved. We had to stop paying our mortgage for 2 months in order to start our short sale process. That will be on our credit report. Application fees can be quite costly and I am scared of taking the risk if it's a good possibility we wont be considered by renters. How do renters look at short sales? We've paid our full rent monthly & on time.

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6
Kevin Olson,…, Agent, Colorado Springs, CO
Wed Oct 13, 2010
Hello,

This is a common situation, and I would suggest talking to the landlord/property manager before applying. Let them know about your situation ahead of time, and that alone will increase your credibility... something else that is important. If they are expecting to see something negative, they should be able to tell you how and to what extent it will affect you in your ability to be approved.

Good Luck
Kevin
1 vote
Patti Kane, Home Buyer, Boulder, CO
Sat May 11, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
0 votes
Mike Personi…, Agent, Denton, TX
Wed Oct 13, 2010
Every situation is different, because every landlord or property manager is different. As a real estate broker and a landlord I'd tell anyone who has gone through a short sale to just explain clearly your situation as it was, why you did what you did, and how things are different for you now. Unfortunately, most people don't really understand the short sale process and that it is usually the best option for someone in trouble on their loan (as long as it's handled with skill). I would rent to someone who went through a short sale in a minute, as long as I knew about the situation and could see that the rest of their application and credit made sense. Doing a short sale successfully means that the bank looked at your whole situation and determined that it not only made sense, but that it was in the bank's best interest as well. Good for you that you took action on it, instead of doing nothing and going through a foreclosure. Now continue to be proactive with renting as well, and leave as little up to chance as possible.

Mike Personius , Broker
http://DallasShortSaleBlog.com
Keller Williams Realty
0 votes
Bruce Lynn, Agent, Coppell, TX
Thu May 20, 2010
Each landlord is different. I would ask them before you pay app fee if based on this information alone are they interested in seeing your app? Bad things can happen to good people. You might write a letter of explanation. Maybe you moved from Las Vegas or Phoenix to Dallas. Show proof that you have paid on time since. Continue to do everything you can to keep your credit score up and do what makes sense. Rent below your means if you can.
Web Reference:  http://www.teamlynn.com
0 votes
Dallas Texas, Agent, Dallas, TN
Thu May 20, 2010
I believe this is a duplicate question
Web Reference:  http://www.lynn911.com
0 votes
Kent Gagon, Agent, Chandler, AZ
Thu May 20, 2010
Unfortunately you are just going to have to take the chance and fill out the rental application and hope that the property manager or owner will ask some questions as to why you had to do the short sale and then get a rental history from your current landlord. Many of my investors are happy to take tenants that the only ding on their credit is a short sale and a few missed mortgage payments as long as everything else is good. But others have a different attitude. So there is no guarantee, you may just tell the manager or owner your situation and see what they have to say before filling out the app. But again no one except the owner/manager will be able to tell you exactly what to expect. Good luck. Sorry you had to go through the short sale process.
0 votes
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