Have your house been foreclosed recently or is your house going to be foreclosed soon? If yes, then you need to find a rental apartment as early as possible. However, several landlords may refuse to rent apartments to you after finding foreclosure on your credit report. But this does not mean that you won't get a rental apartment at all. You can get a good rental apartment by following some useful tips. Have a look at the article to gather knowledge on 5 tips that can assist you rental apartment after foreclosure.
Tips to find a rental apartment post foreclosure
Here are the 5 interesting tips that can help you find a rental apartment after your house has been foreclosed:
1. Make a big deposit: One good tip to get your application approved is making a big deposit. This is because when you make a big deposit, the landlord may regard you as a responsible tenant. They can even overlook the fact that your house has been foreclosed.
Try your best to convince the landlords that you will pay the rents on time.
Foreclosure is a lengthy process. It takes time to complete the entire procedure. It may take as much as 1 year to be ejected from the house. In the mean time you can take advantage of squatter renting. This is where you save the money you are not paying on your mortgage as your house is already under foreclosure process. Use this money for securing an apartment by making a huge deposit.
Another advantage is, you may get the rental apartment at a reasonable price. Lenders may agree to reduce the rent for you. This is turn will help you save a substantial amount on your rent.
2. Ask your friend to co-sign: If your best friend has excellent credit, then you can request him/her to become a co-signer. Ask your friend to co-sign the documents for you. This may make the landlords rent you apartments. Landlords know that if you don't pay the rents on time, then they can always contact your friend. Your friend will be accountable for the payments in case of any default.
3. Submit applications at the right time: You should start submitting applications right after your house has been foreclosed. Foreclosure will get reported on your credit report after a few months. So, the trick will be to get an apartment before the item (foreclosure) appears on your credit report. This way you won't face any problem to get a rental apartment.
4. Maintain good credit: Try to maintain good credit after foreclosure. Foreclosure drops your credit score by as much as 150 points. Landlords are well aware of this fact. You should try your best to restore your credit post foreclosure. Ensure that the bills are repaid on time. Don't incur anymore debts. Adjust your lifestyle as per your income and expenses. Make a budget and try to follow it sincerely.
If landlords ask you why your house was foreclosed, then you can simply tell them that the monthly mortgage payments were too high. If you can prove that you have fulfilled other financial obligations to the best of your ability, then landlords may agree to approve your applications.
5. Shop online: You can search for a rental apartment online. Several websites offer rental apartment services to the consumers. You can get a good look at the rental apartments online and chose the one you like best. You can get a good idea about the price of the rental apartments from these websites. Moreover, you can get other important details on the apartments - locality, apartment complex, management, etc. Thereafter, you can make a list of the apartments you can afford and start contacting the prospective landlords.
Finally, if your applications have been rejected by all the landlords, then don't lose hope. There are some landlords who rent apartments to the tenants without checking their credit reports. So, your job will be to locate and work with such landlords. You can find out such landlords from your local newspaper.