Losing Your Home, Filing Bankruptcy, Need to Move??? RENT BEFORE FILING BANKRUPTCY

By
Real Estate Broker/Owner with NoVa Brokers LLC 0225 094634 VA/ 643686 MD

 

 

If you are thinking about letting the home go through foreclosure and considering Bankruptcy as an option, and need to rent a home, then RENT before filing bankruptcy.  It is more difficult to rent a home after bankruptcy then to buy a home after bankruptcy.  My clients have experienced this first hand because they waited until after bankruptcy to rent a home and were unsuccessful. During the time you are in Bankruptcy, you cannot do any business until after discharge if filing a Chapter 7. 

 

 If you commented on this before, I am sorry but I deleted by accident.  Sorry all.

 

 

 

Posted by

FOR ALL YOUR REAL ESTATE NEEDS

 

STELLA BARBOUR

NoVa Brokers LLC

1483 Chain Bridge Road Suite 103

McLean, Virginia 22101

571-814-3002 OFFICE

703-999-6104 CELL

571-281-2866 FAX

www.novabrokersllc.com

stellabarbour@yahoo.com

Licensed in Virginia & Maryland

 http://www.novabrokersllc.com/

 

 

 

Comments (33)

Anonymous
Ken Moore

No it is not the end of the world. It is just the end of J P Morgan Chase charging 29.9% and driving you crazy. The Mafia is a better creditor  than Chase.

Jul 05, 2008 01:17 PM
#15
Paul Francis
Francis Group Real Estate - Las Vegas, NV
Las Vegas Real Estate Agent - Summerlin Homes

"It is more difficult to rent a home after bankruptcy then to buy a home after bankruptcy."

Just my thoughts, but I would rather rent a home to somebody who declared bankruptcy and has zero debt then to somebody with $20,000+ in debt.

A 750 Fico score means nothing to me if I don't see a positive cash flow.

 

 

Jul 09, 2008 06:02 PM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

Paul - You are right it is harder to rent than buy after bankruptcy.  People don't understand that it would be better to rent after bankruptcy because they are debt free and can afford their rent but it doesn't seem to be that way here.

Jul 10, 2008 12:26 AM
Anonymous
Su

Help! I need to leave my home as I am unable to afford the mortgage payment. I want to rent an apartment. My question is should I let the rental company know that I own a home and it will be foreclosed on? I am afraid that if I tell them they will not rent to me.

Aug 01, 2008 08:57 AM
#18
Wallace S. Gibson, CPM
Gibson Management Group, Ltd. - Charlottesville, VA
LandlordWhisperer

Su * a credit report will show your mortgage with deliquency....they will know.

Aug 04, 2008 12:11 PM
Callie Thompson
Property Xchange Solutions - Frederick, MD
Property Xchange Solutions

Sue call me before you do anything. 407-860-1993

Aug 05, 2008 05:08 AM
Callie Thompson
Property Xchange Solutions - Frederick, MD
Property Xchange Solutions

There are plenty of private owners renting their homes or condos who do not check credit. I wouldn't recommend bankruptcy when going through a foreclosure. There's other options.

Aug 05, 2008 05:10 AM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

Su- They will know when credit is checked.  Check local papers for private owners.  They may understand.  Also offer 2 months security deposit if possible

 

 

Aug 07, 2008 03:04 PM
Anonymous
T

I've been out of work since August, and since then, have not been able to keep up with the bills.  We've never been late on anything until recently.  My husband is the only one producing income at this time, but we are still 3 months behind in mortgage and trying to play catch up on credit cards.  I am now looking into the possibility of bankruptcy.  Not something i want to do, but have done all the calculations and my monthly payments on household living expenses is greater than half our current income.  I'm freaking out because I don't know if anyone will give us the opportunity to rent after BK I currently reside in Rancho Cucamonga, CA and would like to rent in this City so my son can finish his last year of school.  Does anyone know typically how soon after the bankruptcy filing will the mortgage company force us to leave our home?

 

Thanks, T

Oct 21, 2008 04:23 AM
#23
Tracy Miller
Canton, MS
S. S. Specialist

Stella, thanks for sharing this great advice.  I'm sure there's a lot of people that can benefit from this information.

Nov 13, 2008 05:54 AM
Debra Passero
Weichert Realtors - Ruffino Real Estate - Milford, PA

09 will see a lot more filings.  My area has increased in rentals.  Sellers are now turning to rental to save their homes.  Thanks for the info.

Dec 21, 2008 02:27 AM
Anonymous
Tricia

Hello, my husband and I have worked nvery hard to have good credit. 8 years ago we bought our first home. until recently we have never missed a mortgage payment. 2 1/2 years ago we listened to our financal adviser/mortgage broker we got into a arm loan with a 9.9% apr. due to reset in aug. i'm still not clear how we were talked into that but we trusted that we would be able to refinance at as low rate but that fell throught so the past 2 1/2 years have eaten up all we had. The house is in need of major repair and it's value is way less then what we owe. we are currently behind 2 months on our morgage and 1 credit card. We are looking to give the house and car back. We have abtained a bk lawyer and I'm so affraid of the future. Are we doing the right thing?

Mar 26, 2009 01:37 AM
#26
Anonymous
Traci

We are doing a chapter 7.  Our income will be about 77,000 in AZ with 2 adults and 3 kids.  We will be discharging everything but our 2 motorcycles, so we will have transportation.  How likely is it that the judge will not let us keep both bikes  (Will have no other transportation and my husband leaves every month for 3 days and once a year for 2 weeks, leaving me completely without transportation)>???

Jun 30, 2009 04:38 PM
#27
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

Tricia, it sounds like you are making the right step in hiring a BKY Lawyer. The attorney should be able to guide you in the right direction.  Good luck and don't feel like you are the only one in this situation.  There are so many others that have the same situation.

Jul 02, 2009 12:18 AM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

 

Traci - I am not sure what your exemptions are in your state.  But I think you will be able to keep your only transportation by using the available exemptions.  You can probably look up your exemption list on the internet.

Jul 02, 2009 12:21 AM
Tony Orefice
Wilkinson ERA/www.TonyORealtor.com - Concord, NC
Realtor/Harrisburg NC,Concord NC

Hi Stella,

thanks for posting this...I am currently in talks with a couple that first filed chapter 13 and are now changing to chapter 7. They are looking to rent. Can you advise me on a website to read up on this?

Nov 17, 2009 02:59 AM
Stella Barbour
NoVa Brokers LLC - Vienna, VA
Principal Broker, Serving Virginia and Maryland

If they are converting to a 7 it may be difficult to do anything without a discharge.  During a bankruptcy, there is a stay in place which prevents them from doing anything if it requires credit check because it will show a bankruptcy but not a dismissal or discharge.  This is strictly my opinion and I am not in anyway giving legal advice.  These are questions they need to ask their bankrutpcy attorney.

Nov 17, 2009 11:36 AM
Anonymous
Christine

In Arizona -I'm going thru a bankruptsy and foreclosure. I need to find a place to rent and am hoping I dont have problems. I plan to be very upfront and honest with my prospective landlord.  Wish me luck!

Feb 24, 2010 09:28 AM
#32
Harry Ridge
VIP REALTY PLATINUM - Dallas, TX

Great information!:) Do you know if the same rules apply to a renter whil in chapter bankruptcy?  The Dallas foreclosure market is hot but the Dallas Rental market is even hotter.

Apr 15, 2010 04:37 AM
Anonymous
Mike Donner

Hello,

I was diagnosed with colon cancer in October 2006 and had surgery soon after and then did 6 months of cheemo, I have survived the cheemo and the cancer and now I am cancer free YAY!!!! Now the tough part, I lost my home in bankruptcy due to all the medical bills, that was ok I delt with that, but now they tell me that even though my bankruptcy was didcharged in July of 2009 and it included my home and land, the baks have not taken the properties out of my name yet and here it is almost a year later, they tell me I am even responsible for the property taxes until it is taken out of my name. What can I do to help my credit and move on?

Apr 28, 2010 08:49 AM
#34