How to Rent a House During Bankruptcy

A bankruptcy is an unfortunate event with lasting consequences. Despite your misfortune, you still need a place to live. Buying a house during a bankruptcy is out of the question. However, you can rent a house and many real estate investors are prepared to accept bad credit application.

Difficulty: Moderate

Instructions

Things You'll Need:

• Classified ads
• Co-signer
• Deposit
• References

1. Be honest. In many instances, landlords review a potential tenant’s credit report before approving their rental application. If you’re going through a bankruptcy, it’s best to be up front and honest with the owner. Tell them your situation and agree to submit timely rent payments.

2. Get a reference from previous landlords. If you’ve always paid your rent on time, ask your previous landlords for a reference. Even if you have bad credit, or are going through a bankruptcy, an acceptable rental history can play a huge role. This shows willingness and potential landlords feel confident.

3. Look for owners who rent to bad credit applicants. Some real estate investors target bad credit applicants. These people are normally unable to buy a home and investors provide a safe and clean living environment. Browse the real estate classified ads and keep an open eye for ads that accept applicants with bad credit, recent foreclosure and bankruptcies.

4. Save money for a down payment. If you’re going through a bankruptcy, the landlord may request additional upfront payments such as first and last month’s rent payment. The initial expense can be costly.

5. Get a co-signer. If you can’t qualify for the house on your own, get a co-signer. The landlord may allow a joint borrower with excellent credit to sign the lease agreement.