Sellers facing foreclosure worry they won't even be able to rent a house and their family will be homeless. We have many families avoid foreclosure and they always found a place to move to.
A Short Sale Greatly Improves Your Position
If you are facing foreclosure in Louisville, KY, you should definitely consider a short sale. The short sale is much better on your credit and makes it easier to rent your next house. In a short sale, your lender accepts an amount SHORT of your payoff and typically forgives the difference and waives their right to pursue you for the deficiency. You can move on and start over without the damage of a foreclosure or bankruptcy.
But what if landlords won't take me?
Let's examine the circumstances. In most cases the mortgage payment to your lender is now higher than the rent to you will be paying once you move.
Let’s use a sample scenario: Your mortgage your current mortgage payment is $1,400.
It may have been lower in the past but an adjustable rate, a refinance or a loan modification gone wild increased your payment.
You may be looking rent a house with a more affordable range of $1,000 range
Landlords Need Tenants
When you apply for rental please keep in mind the following landlord considerations that work in your favor:
Landlords and property managers know that most renters in today's market have credit problems. If the property manager waits for perfect tenant with perfect credit they will have a lot of vacant houses with no way to pay their own mortgages. Many landlords are also struggling to avoid foreclosure.
The Rent is Affordable, Your Mortgage Was Not
Landlords and property managers will consider the fact that you could not make the $1,400 payment, but you are only applying for house with a $1,000 payment. That $400 a month difference is equivalent to $4,800 a year difference.
For you to pay rent for you to pay extra rent of $4,800 a year of take-home pay means you have to earn about $6,000 of gross pay. Going down in house payment in this case is like getting a $6,000 raise.
Your situation may also be that you can afford the monthly rental payment but you could not afford the back payments on your mortgage which could easily be $5,000-$10,000 to bring the mortgage current.
The property manager will be making a judgment call based on human factors, and not just your credit score.
Banks Work Slowly – That Benefits You
Also please keep in mind that the banks process short sales very slowly and it is common for the short sale to take three months 3 to 6 months until you have to move. That works in your favor because it gives you time to search for your next house. Even if some landlords turn you down, you only need one to accept your application.
You Deserve Relief From The Stress
Please accept my sincere encouragement: there is life after short sale. A short sale is a dignified way to sell your house and avoid foreclosure. You will not be losing your house; you will be selling your house and losing that nasty mortgage. There is life after short sale. You deserve relief from the stress.
We have helped many; please let us help you, too.
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