Securing a safe and affordable place to live is important after bankruptcy. But many bankruptcy debtors worry that they may not be able to find anyone to rent to them, so they avoid filing bankruptcy. But debtors considering bankruptcy shouldn't allow their fear of not finding a rental stop them from filing.
Renting a Home or Apartment After Bankruptcy
Below are a few tips on finding a rental home or apartment after bankruptcy:
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- If you know that you will leave your pre-bankruptcy home, begin looking for a new home or apartment before you file bankruptcy or before your bankruptcy discharge. Your bankruptcy will not show on your credit report immediately so you will have a little time. But be prepared to explain any negative credit marks to your potential landlord.
- Don't focus on large apartment complexes run by apartment management companies. Many large complexes and management companies are very strict and may be concerned about renting to people who have filed bankruptcy. Focus instead on finding a small rental owned by a private landlord. Private landlords are less concerned about your bankruptcy and more interested in whether or not you have a job and the cash for a down payment.
- If you are looking to purchase a home after bankruptcy, consider a Lease to buy option; but be careful to have an attorney look over the paperwork. Lease to buy will allow you to rent a property after bankruptcy with an option to buy it in two to three years. If the deal sounds good and you decide to rent with an option to buy, make sure you work on building your credit in the two years between your bankruptcy discharge and the time you plan to purchase the home.