Will Chapter 7 bankrupcy and foreclosure effect my ability to rent a home if I can put down several months rent?

Asked by Maria, Carlsbad, CA Sun Oct 23, 2011

My husband and I have recent Ch7 bankruptcy. Mortgage was dismissed and we did not reaffirm. Our mortgage payments are too high for us and the home is over 200k upside down. We are looking to walk away since debt now shows as 0. Will we be able to find rental agents to work with us with our credit taking such a big hit? We had a good credit history for 20 years.

Help the community by answering this question:

+ web reference
Web reference:

Answers

7
Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sun Jul 7, 2013
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. After researching the web I found a loan program at http://www.cfsflex.com, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. Good to see lending options coming back.
0 votes
Kimberley Ve…, Agent, Rancho Cucamonga, CA
Wed Mar 6, 2013
Having a Ch7 bankruptcy will remain on your credit report for 10 years from the discharge date. The good news for you is that in this market, you are not alone and a lot of good people are in your shoes. Since there were so many distressed homeowners forced into short sales and BK's, Landlords are more willing to look at the whole picture and overlook the BK. Be prepared to pay a higher security deposit but explaining your situation and showing that you are on track and rebuilding stability in your life goes a long way. I would recommend finding a homeowner through Craigslist or other online advertisements instead of going through a rental agency. A homeowner is more likely to rent to you directly and is less governed by the criteria that most rental agencies must follow. I hope this helps, good luck to you!
0 votes
Eric Stiller, Renter, Carlsbad, CA
Sat Jan 26, 2013
Your credit is history... But you will still be able to rent...
0 votes
Robert Chome…, , San Diego, CA
Fri Nov 4, 2011
I am a landlord and I just rented to someone with a BK7 and a foreclosure. I was able to read between the lines and see that the tenants had stable jobs and were just caught in the housing downturn and that it was an isolated incident. They have been great tenants. I think there are other landlords out there that will see things the same way.
0 votes
Angelique Ke…, Agent, Carlsbad, CA
Fri Nov 4, 2011
Dear Maria,

it totally depend on the management company or the landlord.
Unfortunately in this market, lots of people went thought the same distress as you and you ARE NOT ALONE!
If you need help with a credit attorney to help you heal your credit, don't hesitate to email me and I will be glad to forward you their office info, they are working specifically on referrals!
Good luck with your journey!
Cheers,


Angélique Kenney
Certified professional real estate sales person: Realtor®, CRS (Certified Residential Specialist: elite top 4% of Realtors® in the U.S), GRI, e-Pro, SFR(short sales/foreclosure negotiator), ILHM member (Luxury Marketing Institute), SSR (Sport Star Relocation)!
International Properties | Luxury Estates Certified | Corporate & Military Relocation Specialist | Constant Top Producer | Fluent in French | CA DRE#01846783, ID, HI

Cell: +1 (760) 282 - HOME (4663) | Fax: +1 866.422.0641
angeliquekenney@gmail.com | http://www.AngeliqueKenney.com
0 votes
Robert Chome…, , San Diego, CA
Mon Oct 24, 2011
I am a landlord and I rented about 9 mos ago to someone who went though a Chap 7 BK. A good landlord, will read between the lines of a credit report and see if something is an isolated event. My tenants were a good risk because this was an isolated event and I liked the fact that they had cleared out all their other debt obligations so that rent would be the only major one.

By the way, you can get a FHA or VA home loan only 2 years after a chapter 7 bankruptcy. Just make sure you re-establish credit and do not have any derogatories post BK.
0 votes
Carol Perdew, Agent, Manteca, CA
Sun Oct 23, 2011
Maria,

I have friends in your situation and they have been able to find a rental. They searched the newspapers and Craigslist for landlords that are looking for tenants. Talking directly with the landlord will help you explain what has happened to you. You may not have the option of being picky when looking for a home to rent, but find a rental and build up your credit so you will have more opportunities in the future.

Thanks,
Carol Perdew
Prudential California Realty
(209) 239-7979
Carol@PerdewHomes.com
DRE 985176
0 votes
Search Advice
Search
Ask our community a question
Rentals in Popular Carlsbad Neighborhoods

Email me when…

Learn more