Foreclosing on your home is a stressful time. Not only have you lost the familiarity of your home environment, but you're faced with the struggles of having to move into an apartment with bad credit. Although a foreclosure may hinder your apartment search, you will still be able to find an apartment. Take a deep breath and follow this guide on how to find an apartment after foreclosure.
STEP 1:
Put more money down. If your credit check didn't go well or if you asked them not to do one, you may still be able to find an apartment after a foreclosure by making your money talk. That is, offer to put down a few months rent up front. Or give a large security deposit. This may be all the assurance a landlord needs that you will pay your rent on time. After that, always pay your rent on time. Just because you put extra money down doesn't mean you're off the hook for a few months. It's an insurance policy on your tenancy, so don't make the landlord question your abilities to pay rent by skipping any payments. (You'll receive any extra money back after you move out. Just remember to get in writing how much money you put down. A check and a signed letter from the landlord are good ways to prove that you have given more money than necessary).
STEP 2:
Rent first, foreclose later. If you can afford to, find the apartment before your foreclosure happens. That way, the foreclosure won't be on your credit report yet. And landlords will see no reason not to rent to you. The only issue with this approach is gathering enough money for first and last month's rent before you are out of your home. But if you can make it work, it's a sneaky approach to finding an apartment after a foreclosure.
STEP 3:
Get someone to vouch for you. You may be able to rent an apartment after a foreclosure if you have someone co-sign your apartment lease with you. This person must have great credit and be willing to pay any rent that you can't. Once you both sign your name to a lease, you are both legally obligated to pay for that apartment. So both of your credit ratings are at risk in this situation. It's not good to put your friend's credit rating at risk, so only go for this method if you've exhausted all of your other options.
STEP 4:
Continue to keep up with your other bills. Even though you may have foreclosed on your home, you still need to keep up with your other bills. Although your credit doesn't look the greatest after a foreclosure, don't add to a poor credit rating by slacking off on your other bills. Try to keep your mortgage issues an isolated credit problem. If your landlord can see this, he may be willing to rent you an apartment even after a foreclosure.
STEP 6:
Be honest. Although it may be difficult, it's important to be honest with your landlord. It's not that you should be forthright with all of your financial struggles. But don't lie about them. Explain the basics of your situation and discuss the action you've taken to turn your financial situation around. An understanding landlord may sympathize with you, appreciate your honesty, and rent you an apartment after foreclosure.
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