If you’ve tried renting an apartment after foreclosure, you would know it’s not a walk over. Landlords are not just interested in the amount of money you have in your account, some of them dig into your credit history. This tells them alot about your credibility. Renting an apartment after foreclosure can be easy if you follow the tips below;
1. Rent Before the Foreclosure Hits Your Credit
Depending on how foreclosure works in your state, the actual foreclosure may not show up on your credit report for a few weeks. If you apply for an apartment before the foreclosure is updated on your credit report, you have a better chance of getting approved. However, late payments which led to your foreclosure will probably still show on your credit report. Here, timing is very important since most people don’t realize foreclosure is inevitable until it’s happening.
2. Protect Your Other Credit Accounts | Renting An Apartment After Foreclosure
You may have failed to stop the foreclosure but you can still show creditworthiness by protecting your other credit accounts. Keep up with your monthly payments on other credit accounts and you might just be able to get away with a foreclosure.
3. Make Enough Money | Renting An Apartment After Foreclosure
You need to make enough money to comfortably pay the rent and your other monthly expenses. As a general rule of thumb, look for properties with rent that’s no higher than three times your income – $1000 if your monthly income is $3,000 for example. If your rent is higher than that, you may not qualify, even if the landlord would otherwise be willing to overlook your foreclosure.
4. Find No Credit Check Apartments | Renting An Apartment After Foreclosure
Large apartment complexes are typically owned by companies that have strict approval criteria. You’re more likely to get a credit check at one of these complexes (and denied if you have a foreclosure) so don’t let these be your first choice. Instead, look for houses, condos, townhomes, duplexes, and small apartment buildings that are owned by a single landlord. These types of landlords are less likely to do credit checks. Look for these types of apartments advertised in the local newspaper, Facebook trading groups for your area, Craigslist, or ask friends and family for recommendations.
5. Pay a Higher Security Deposit
If you’re able to pay a higher security deposit it may help you get into an apartment. Giving your landlord a higher deposit lets them know you’re serious about paying your rent.
Not only that, a higher deposit lets the landlord cover losses if you decide to break your lease without notice. But, that doesn’t mean you can skip a few months of rent. You’re still responsible for paying your rent on time each month unless your rental agreement says otherwise.
6. Find a Cosigner
You can get approved for an apartment, even one of the larger apartment complexes if you have a cosigner or guarantor who meets the credit qualifications. Keep in mind your cosigner will be responsible for any unpaid rent or damages done to the rental when you move out.
7. Don’t Lie About Your Foreclosure
It is not advisable to lie about your foreclosure if you’re asked. A lie will eventually be found out and it can cost you a rental. If you’re asked if you’ve ever had a foreclosure, be honest. Explain the situation and focus on how you’ve turned your finances around. Make sure the landlord understands that what caused the foreclosure won’t cause you to be late on your rent.