Sooner or later something bad happens in every family. In fact, it’s unusual for a person to never have an accident or go through bankruptcy. So, whether you buy a car or rent a home this information helps you recover after filing bankruptcy. Therefore, with this article, you will learn about how to rent or buy a home or car after bankruptcy.
Usually, you should be able to buy a home two years after discharge. Then, if you want to rent, many of the same factors for buying a home also apply to renting an apartment.
Then, as soon as you file, you can buy a car after bankruptcy at a slightly higher rate. Within six months, you might also buy a car at a normal rate. But, to accomplish this, you must first work on your credit file. Also, please note that my assistant has a list of car lots in the Louisville, Kentucky area.
How to Rent or Buy a Home or Car After Bankruptcy
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 upfront? There are plenty of banks and landlords that give you a second chance for an apartment or car. They always 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.
You should know that banks own many apartment complexes. Unfortunately, these places won’t consider renting to you unless you meet their scoring systems. Also, unfortunately, the scoring system penalizes a person heavily for bankruptcy and poor credit. So, look for the listing services that list properties where they are willing to rent to persons who file bankruptcy.
I also suggest concentrating on renting from individuals instead of apartment complexes. There are listing services but you will have to be wary since some of these services sell the list which may have very few actual landlords. However, to rent or buy a home or car—even an apartment, you must convince them to like you and understand why you’re a good risk. Steady employment, prior history of properly caring for the property, and paying on time are all reasons to lend or rent to you.
⎆ Talk to the potential landlord about your bankruptcy.
However, wait until after they get to know you to bring up your bankruptcy. Of course, you must answer the landlord’s or manager’s questions honestly and directly. But it’s best to be upfront about your bankruptcy filing.
They shouldn’t have to pry it out of you because they run reports for your bankruptcy and payment history. So, if you had problems in the past you need to show this won’t be a problem in the future. He wants a renter as a partner, not a problem.
⎆ Avoid paying application fees for apartments only to be denied.
You may be wasting your time and money with these complexes. The truth is, some are in the business of taking applications as much as they are in renting apartments. However, if you contact a complex, my suggestion is to bring it up early and listen closely. If they don’t guarantee that bankruptcy won’t deny you an apartment, then, don’t submit the application and waste your money.
Also, please be aware that apartment complexes have rules from which they cannot deviate. Unfortunately, if they allow one person to rent with a bankruptcy filing, then, they need to allow others or they risk a discrimination lawsuit.
⎆ Private home owners might rent to you instead of your FICO score.
You can also bring up that you won’t be able to file bankruptcy on them. Further, explain that you can only file one bankruptcy every 8 years. I suggest, however, that before you start this conversation, you ask questions about the property. Doing this allows the landlord to get to know you better. The thing is, most people can easily evaluate whether a renter is honest and will pay the rent or not. In fact, your body language, confidence, and choice of words 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. You may expect not to talk about some topics until after a person gets to know and trust you. However, you might have to spend some time with it.
⎆ Factors that influence a landlord or car lot positively or negatively.
• Your appearance and your car make the first impression.
Show up with a car and clothes that show you take care of your belongings and yourself. Do this or they won’t rent to you. Instead, they assume you’re going to tear up the apartment. Also, it’s ill-advised to smoke while meeting the landlord.
• Honesty goes a long way towards making a good impression.
Even though this might be an individual, don’t assume that he doesn’t know what he’s doing. Rather, expect a thorough check of prior landlords and a credit check before you rent or buy a home or car after bankruptcy. Also remember, that even though it may be your emergency to move in or to get a car it isn’t their emergency. However, your honesty and friendliness help. Also, remember to take personal responsibility for things and you will go farther.
• Prepare and present a reasonable explanation.
If you don’t offer any explanation, they might assume the worst. So, it’s up to you to explain how divorce, job loss, or illness won’t happen again. Again, remember that your divorce or illness is your problem. Unfortunately, they can’t make it their problem and stay in business. In fact, 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 in that either you take care of the property and pay timely or you don’t. If the risk is higher they must increase the security deposit, down payment, or rent to pay for the higher risk. Then, if you pay on time, maintain the property, and don’t cause him problems he will value you as a client. After that, you won’t have problems getting the next car or property.
Also, remember to take time to repair your credit file and work on your credit score so the next lease or auto purchase is easier. The point is you are putting all this behind you because if you didn’t file bankruptcy you would still have poor credit. Moreover, you might still have problems but now you are more likely to be able to rent or buy a car after bankruptcy. Eventually, this passes with time if you work on your credit repair after your bankruptcy discharge. So, if you want to rent or buy a home after bankruptcy, follow these suggestions and read the bankruptcy manual.
If you are facing bankruptcy, don’t delay because timing is crucial. I am here to help you. So, contact my office right away to start the conversation. Nick C. Thompson, Bankruptcy Lawyer: 502-625-0905.