Bad things happen in every family divorce, job loss etc. Sooner or later something happens. There is something seriously wrong if you have never had an accident or filed bankruptcy. Whether you are buying a car or renting a home these factors will help you recover after filing a bankruptcy. Step by step this is how to rent homes apartments after bankruptcy or buy a car. You should be able to buy a home 2 years after discharge. You can buy a car as soon as you file at a slightly higher rate or within 6 months at a normal rate if you work on your credit file. Many of the same factors for renting an apartment apply for a home and my assistant has a list of car lots in the area.
Buying an auto or renting from the Banks and Landlords.
Whether or not you handle it with responsibility and courage determines what a landlord or car lot thinks of you. Did he have to find it out the hard way on his own after you lied about it or did you offer a reasonable explanation up front. There are plenty of banks and landlords that will give you a second chance for an apartment or car. They will ask your prior landlord if there were problems and whether you left the prior place in a good condition or not. If you are buying a car or renting they will check the credit file and find out before renting or lending to you.
Many apartment complexes are owned by banks. These places won’t consider renting to you unless you meet their scoring systems which penalizes a person heavily for a bankruptcy and poor credit. There are some listing services which do list properties where the owner or manager will rent to persons who have filed bankruptcy. I have always suggested concentrating on renting from individuals instead of the apartment complexes. Rent after bankruptcy.com is a listing service but you will have to be wary since some of these services sell the list which may have very few landlords. However to rent or buy a car you will have to convince them to like you and understand why you are a good risk. Steady employment, prior history of taking care of the property and paying on time are all reasons to lend or rent to you.
You do need to bring up your bankruptcy or poor credit history.
Bring it up however after he gets to know you. Answer his or her questions honestly and directly when you are asked. But you should bring it up you filed bankruptcy. He shouldn’t have to pry it out of you. Your Bankruptcy and payment history will come up. If you have had problems in the past you need to show this wont be a problem in the future. He wants a renter as a partner not a problem.
Professionally managed apartment complexes charge a fee for an application
You may be wasting your time and money with these complexes. Some of them are in the business of taking applications as much as they are in renting apartments. If you do contact a complex my advice is to bring it up early and listen closely. If they wont guarantee bankruptcy won’t be used to deny you an apartment don’t submit the application and waste your money. Large complexes have rules which they cant deviate from. If they allow one person to rent who has filed bankruptcy they need to allow others or they risk a discrimination lawsuit.
Individuals who rent homes are far more likely to rent to you instead of your FICO credit score.
If you bring up your bankruptcy you can also bring up that it isn’t like you can file bankruptcy on them. You can only file one bankruptcy every 8 years. I do suggest however that before you start this conversation that you ask questions about the property and allow the landlord to get to know you. Most people are great at evaluating whether a renter is honest and will pay the rent or not. Your body language, confidence and choice of words will communicate more about you than anything else. Your job, and many other factors tell the landlord more about whether you will take care of the property than your credit score does. Talking to an individual landlord is a lot more like asking for a date. Some subjects are not brought up immediately until after a person gets to know and trust you. You will have to spend some time with it.
Factors which influence a Landlord or car lot positively or negatively include:
Your appearance and your car.
Show up with a car and clothes that proves you wont take care of your own belongings and yourself and they won’t rent to you. They will assume you will tear up the apartment. Also don’t smoke while you meet the landlord.
Even though this is an individual he isn’t stupid. He will check prior landlords and do a credit check before renting to you or selling a car. It may be your emergency to move in or to get a car. He has however had bad renters and debtors before and it isn’t his emergency. Your honesty and friendliness will help. Also take personal responsibility for things and you will go farther than others.
A reasonable explanation.
If you don’t offer any explanation he will probably assume the worst. Divorce, job loss, illness. Explain how it won’t happen again. Your divorce or illness is your problem. He cant make it his problems and stay in business. If he thinks you plan to make it his problem you won’t get the apartment or auto. Explain how this will never be a problem for a landlord or lender ever again. Prove it by bringing along proof of income, bank statements, your budget, anything that will support you are responsible. Bankruptcy happens to everyone but how you recover from it speaks volumes about your character.
Landlords and banks invest in property and renters.
You are their largest risk. Either your take care of the property and pay timely or don’t. If the risk is higher you will have to increase the security deposit, down payment or rent to pay for higher risk. If you pay on time, maintain the property and don’t cause him problems he will value you as a client. You wont have problems getting the next car or property. Take time to repair your credit file and work on your credit score so the next lease or auto purchase will be easy.
The point is you are putting all this behind you. If you didn’t file bankruptcy you would have retained the poor credit. You may still have some problems but now you are more likely to be able to rent or buy a car. Eventually this will repair itself if you work on your credit after your bankruptcy discharge.