Renting to someone who had bankruptcy/foreclosure : ezLandlordForms

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Trevor R

started a topic over 13 years ago

I have a couple that is interested in my place. They filed for bankruptcy last September and are currently in foreclosure. I was told that the wife was laid off and they were upside down on their house (the house story backs up from my research...couldn't sell for like 95K in Chicago suburb). They want to pay the sec deposit in two installments (half up front and half the next month). They have money but they don't have $2150 sitting around which is what they would need up front. They would be moving in mid-month so they would owe for the half month and half the deposit. Then the next month they would owe the rest plus the other part of the deposit. They want to do a 2 year lease and talked about maybe buying the house down the line. Would you be concerned? What would concern you? I am waiting to get their application. Obviously I would double verify on their employment. The wife is now gainfully employed as is the husband.

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Joseph or Mary S

said over 13 years ago

i HAVE FOUND SOME WHOHAVE FILED BANKRUPTCY TO BE GOOD TENANTS AS THEY HAVE NO OTHER BILLS --DO YOUR HOMEWORK--WHY DID THEY HAVE TO FILE--WAS IT ONLY THE HOUSE

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Diana L

said over 13 years ago

I just finished having a bad renter. I can tell you that you need to get the whole deposit up front or you will never see the the rest of the deposit.

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Kristen L

said over 13 years ago

I disagree, I had the same issues and the couple turned out to be excellent renters. They did pay the half upfont and the rest the following month. They were always on time and did not cause me any problems at all. Sometimes bankruptcy can not be helped. I myself have friends who went through it due to health issues they did not file on their home but the bank said they had already started foreclosure on it when in deed they had not. It still showed up on their credit report to this day. They fought with the bank about it for now over 20 yrs. So sometimes you have to go with your gut instinct. Their are still some good people out there who are just stuck in a bad situation. In the end I had great tennants with this same issue. Wish you the best.

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James L

said about 13 years ago

foreclosure here in the Detroit area is through the roof. Folks who could pay 900/mo found it difficult to make the payments when the rate jumped and payments went to 1300 or more. They may be short time renters... 1 to 5 years... as they rebuild their credit or they may be good candidates for a lease option or contract for deed. They may have lost their house... but they still need a place to live.

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Dana C

said about 11 years ago

I require first, last and security deposit upon move in. Also, I am requiring a tenants mother to co-sign. The candidate has a job which pays $119,000 per year. The previous two places where he rented initiated eviction proceedings if rent was not paid within 5 days so he has 6 eviction filings which were dismissed. He also has one eviction which resulted in a set-out 3 years ago when he was unemployed. I also am invoking lease termination if rent is paid after the 15th and invoking loss of deposit and last month's risk. What else can I do to minimize my risk?