Finding a place to live if bankruptcy has forced you out of your home is stressful. Bankruptcy can make it difficult to qualify for a mortgage, at least for the foreseeable future, so renting is likely your only option. The trouble is, you might also find it challenging to rent a home after bankruptcy. Luckily, there are a few things you can do to ensure renting a home goes smoothly and that you can get started on rebuilding your life from a comfortable, safe home.
Don’t Limit Your Search
There are many different resources you can use to find a home rental. Searching online allows you to conduct very specific searches and contact rental companies via email to share details about your specific situation. This way you don’t need to travel all over town, wasting time and having countless rental applications turned down.
Be Honest When You Apply to Rent
The majority of rental agencies conduct a credit check before approving your rental application. You stand a better chance of being approved if you are up front about your situation. Honesty gives the rental agency a good impression and can save you a great deal of time, frustration, and money. If they are going to turn you down automatically because of bankruptcy, they can let you know before you apply and waste the money for the rental application fee (if there is one).
There are places that will rent to you with no credit check, but finding one can be a challenge and these homes aren’t always in safe neighborhoods. Be sure to take a tour of any home or apartment before signing a lease and putting down a deposit.
You might want to prepare a case for why you are a good risk despite your bankruptcy before you apply. Share with the rental agency that you struggled financially, but you are working to get back on track. Show a few recent paid-in-full bills and give a brief overview of what caused your bankruptcy, if it will help. A landlord might be likelier to be sympathetic if he or she knows an illness triggered your financial struggles.
Expect It to Be More Expensive
Some rental agencies require a larger deposit from high risk renters. Don’t be offended by this – it is just protecting their risk and getting you into a home you love. If you are renting from a private owner, you might even consider offering a higher deposit if you think it would help.
Bankruptcy does not need to ruin your living situation and get you stuck in a friend or relative’s basement for the rest of your life. Most people are able to rent a great home after bankruptcy, but it takes some time and effort.
The reality is, you are in a better position after bankruptcy because you have eliminated most of your debt. Most landlords will understand this, but might still require an extra month security.
If you would like to speak to someone about bankruptcy or you believe your bankruptcy has interfered with your ability to find a home, contact the law office of Frank J. LaPerch, PC.
