How to Rent a House After Foreclosure

Your recent foreclosure won't prevent you from renting a home.

Most homeowners become terrified when they hear the word "foreclosure." The process of losing a home due to a defaulted mortgage is stressful, and homeowners must quickly remove their belongings from the property while worrying about finding a new place to live. If you've recently faced a foreclosure, renting a home can seem like an impossible task. Nevertheless, by finding a landlord who will look beyond your defaulted mortgage, you can rent a home that meets your financial needs.

Things You'll Need

• Deposit
• Co-signer

Instructions

1. Save enough money for a deposit. Determine how much you can spend for rent each month and then set aside two to three times that amount to cover your deposit and first month's rent. For example, if you can afford an $800 rent payment, save $1,600 to $2,400. Your ability to pay a deposit can help you secure a rental home.

2. Find a co-signer. If you have a family member, such as a parent or sibling, with a good credit history, ask that person to co-sign your rental lease. Not all property managers will require a co-signer, but it is a good idea to have one in mind in case you need one. Remember that a co-signer is liable for the house that you rent; therefore, make sure you look for someone who trusts you.

3. Visit a property manager. Search for a small company that is based in your area, as they are more lenient with individuals who have faced foreclosure, according to The San Diego Union-Tribune. Private landlords are also a good option for renting a home following a foreclosure. Look in the newspaper and online for local properties. Once you find a landlord who fits your needs, view houses that are available to rent from the individual or company.

4. Be honest with the property manager. When you fill out the application for the rental property, disclose the foreclosure and what led to the loss of your home. If you fell behind on your house payments due to the loss of a job or loved one, let the landlord know. Don't falsify any information, as most property management companies and landlords run a credit check to look at your credit-worthiness.

References

• The San Diego Union-Tribune: After Foreclosure
• U.S. Department of Housing and Urban Development: Relocation, Foreclosure and Eviction