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Should I rent a house to someone in foreclosure?

Posted by bemily (My Page) on
Mon, Nov 17, 08 at 22:37

This woman bought a house with her x-fiance 4 years ago and now it is in foreclosure. My radar says that she appears to have it together otherwise. She has been at her job for 8 years and she says that the rest of her credit is good. The whole credit check is such a hassle, especially at this point since she is very upfront about her situation. Her father is willing to cosign the lease. Any opinions or suggestions? Thanks. I hope this forum is the best place to post this type of question.


Follow-Up Postings:

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RE: Should I rent a house to someone in foreclosure?

I certainly wouldn't rent her the home without checking her credit, even if it is a hassle. If the rest of her credit is decent (although with a foreclosure it can't be too decent) and she has a co-signer and a significant security deposit then I might. I certainly would be very wary and if I had another possible renter without a foreclosure on the books, then I'd pass on by the foreclosure tenant.


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RE: Should I rent a house to someone in foreclosure?

I like cordovamom's advice.

Although I have to say my friends had their home foreclosed on. She lost her job in a layoff and they couldn't make the mortgage payments. She got another job and they rented a house that somebody was willing to give them a chance. They were never late on their rent and rented the house for 2 years before they decided to move to a cheaper area and save up more money to buy another home.


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RE: Should I rent a house to someone in foreclosure?

I have not found the credit check process to be a hassle at all. I have actually had the prospective tenants at my house, log into a credit reporting site and request their own credit report. (I showed them how to do it) They print it out and hand it to me. No problem. Be sure to get a copy of their ID so you can be sure it is the same person.

Trust me, evicting someone who is a scammer will be much harder than running a credit report.


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RE: Should I rent a house to someone in foreclosure?

PULL A CREDIT REPORT...not matter what the hassle is.

Also, try her name on your state or county web site that might have public info. This is usually free and you can see evictions, court cases, possibly criminal issues, etc. Do this in addition to the credit report.

You might find other issues, and might not. I had found a person that had lots of other issues that I found when I dug deeper, and I decided not to rent to that person. When you see a history of financial issues, realize it is more likely that this history will be repeated again at some point.


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RE: Should I rent a house to someone in foreclosure?

You only know what she told you... which may or may not be full disclosure.

I would pull a credit report for BOTH her and her dad.

Otherwise, you will have a whole lotta hassle later - especially if you have to evict...


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RE: Should I rent a house to someone in foreclosure?

Thank you all for your responses. It sounds like I should do the credit check. So, if there is nothing else but the foreclosure I should go ahead? I thought about asking to drive by her house and her fathers house, spur of the moment, to see the condition its kept in. What about instinct, does nobody rely on that anymore?


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RE: Should I rent a house to someone in foreclosure?

You could always ask for personal refs (vs financial).


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RE: Should I rent a house to someone in foreclosure?

After running a credit check on her and dad, assuming that you will have an adequate deposit and proof of employment, I probably would. this is a huge demographic that needs to find a place to live.


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RE: Should I rent a house to someone in foreclosure?

I remember first moving to this locality. I had a professional job and just divorced. Had excellent credit too. Just didn't have a place to live. I also had a kid and a little dog. I couldn't rent a hovel because nobody would rent to anyone with a pet, many wouldn't rent to anyone with a kid, and the single woman aspect finished it off. I had to freaking buy a house to have a place to live. I'll never forget that. Yes, there is a huge demographic who will need someplace to live. And some of them will make much better renters than homeowners. Good luck.


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RE: Should I rent a house to someone in foreclosure?

"this is a huge demographic that needs to find a place to live."

While it may be huge and may need a lace to live, many of these people have already demonstrated their inability to manage their money.

I have no intention of being the next person loosing money on their behalf (my taxes are already paying for the first set of losses).


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RE: Should I rent a house to someone in foreclosure?

Umm, what is the big hassle? Compared to getting someone evicted? You take an application fee to cover the expense and get permission in writing to run the credit report. You need her SSN. Then, go online and run her report.
Good luck!!


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RE: Should I rent a house to someone in foreclosure?

No, it is bad business sense to rely on instinct these days. Confirm your instinct with a credit report.
Jo


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RE: Should I rent a house to someone in foreclosure?

Hello! This is a microcosm of American society here. Because so many of you are up to your ears in debt, you live and die by your credit report. Give me a break, what does a credit report really say about someone who has already told you that they lost their house? That they don't have any money? Huh....what a surprise. The house isn't the first thing to go and lots of credit card debt is usually associated with anyone in foreclosure. I have a lot of rental property and have never run a credit report and have never had an eviction or loss of rent. My renters pay on time because I am a good landlord who provides great housing at a fair price. The reality of rental housing in 2008 is 99% of the people who are applying to rent have really bad credit and financial sense or else they wouldn't be renters! As to the hassle of eviction, as long as you are not accepting section 8 housing it is $100 bucks to a lawyer and 30 days from start to finish in my state.


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RE: Should I rent a house to someone in foreclosure?

"The reality of rental housing in 2008 is 99% of the people who are applying to rent have really bad credit and financial sense or else they wouldn't be renters!"

There is still a huge group of folks just getting started in life after college, trade school, or even just high school (though that group rarely can lease anything but a studio apartment around Washington, DC).

In addition is the defaulting fools.


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RE: Should I rent a house to someone in foreclosure?

Hello! This is a microcosm of American society here. Because so many of you are up to your ears in debt, you live and die by your credit report. Give me a break, what does a credit report really say about someone who has already told you that they lost their house? That they don't have any money? Huh....what a surprise. The house isn't the first thing to go and lots of credit card debt is usually associated with anyone in foreclosure. I have a lot of rental property and have never run a credit report and have never had an eviction or loss of rent. My renters pay on time because I am a good landlord who provides great housing at a fair price. The reality of rental housing in 2008 is 99% of the people who are applying to rent have really bad credit and financial sense or else they wouldn't be renters! As to the hassle of eviction, as long as you are not accepting section 8 housing it is $100 bucks to a lawyer and 30 days from start to finish in my state

This whole paragraph is a bunch of generalizations and stereotypes. What is a credit report? Well lets see, why not ask the insurance companies now who base your insurance rates on your credit report, why not ask employers who base if you're a good employee on your credit report. EVERYTHING is tied to your credit report these days. You ask, what is your credit report?

Being a good landlord doesnt guarantee you a good tenant. There are plenty of good landlords that have to evict people because they don't pay rent.

The reality of rental housing in 2008 is 99% of the people who are applying to rent have really bad credit and financial sense or else they wouldn't be renters

99%? Where do you get your facts? How ridiculous.

I can tell you that I am seeing more and more people letting their house go into foreclosure because it isnt worth what they paid and feel they are throwing good money after bad. Their credit is perfect, with the exception of their mortgage. I guess they are all in the 1%


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RE: Should I rent a house to someone in foreclosure?

We rented one home to a man who wanted horse property for his daughter. Instead, he installed a meth lab, which our plumber found. We lost on all the repairs we had to do and the HAZMAT fees. We were lucky he did not blow the place up. Check out what you can on an individual.


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