Advice to aid recovery... - Tilted Forum Project Discussion Community

hrdwrjnkie · 01-21-2005, 11:15 PM

Hello all, I am a relative n00b here on the TFP, I lurk a lot but haven't posted much. I enjoy these forums and their information immensly, however, and am hoping that I can get some assistance or friendly advice.

I am in the (not-so) unique situation of having a horrible credit history. Between college, a business partnership that went south, and a divorce, my credit is pretty bad. To give you an idea:

Quote:

Account Summary
Mortgage 0 $0
Installment 2 $1,819
Revolving 3 $601
Other 4 $368
Total 9 $2,788

quoted from my Experian report, and a bankruptcy in April 2003.

All of this is old debt that has been covered by the bankruptcy, as well as a ton of debt that never hit the credit report.

My problem is in getting into an aprtment. All of the larger leasing companies do thorough credit checks, and the bankruptcy DQ's me right there. I am also finding that more and more independant landlords are doing the same. As a matter of fact, after three months of apt searching (my current lease runs out in March, and a rent hike is coming), I have found exactly 0 apartments that will accept myself and my fiance as tenants.

The laughable part of this all, looking back, is that between my fiance and myself we bring home about 40K/year (which is not bad for rural ND). However, it is hard to hold a job without a place to live.

I don't understand how a landlord can look at a bankruptcy 2 years ago, and tell a young couple with a 40K annual income that they are a 'rental risk' to a $350/month apartment....

Any ideas/suggestion/comments etc?

arch13 · 01-22-2005, 01:08 AM

Perhaps offering a larger deposit up front to potential landlords and being clear and clean about the banruptcy's is in order.
By offering a larger deposit, you put your money where your mouth is. And in Business that's what matters.
If you have a two person income of ~40,000 , then the apt price range your looking at allows you to have enough money to account for a larger deposit in your living expenses as a part of your income.

Cynthetiq · 01-22-2005, 08:33 AM

Quote:

Originally Posted by hrdwrjnkie

Hello all, I am a relative n00b here on the TFP, I lurk a lot but haven't posted much. I enjoy these forums and their information immensly, however, and am hoping that I can get some assistance or friendly advice.

I am in the (not-so) unique situation of having a horrible credit history. Between college, a business partnership that went south, and a divorce, my credit is pretty bad. To give you an idea:

quoted from my Experian report, and a bankruptcy in April 2003.

All of this is old debt that has been covered by the bankruptcy, as well as a ton of debt that never hit the credit report.

My problem is in getting into an aprtment. All of the larger leasing companies do thorough credit checks, and the bankruptcy DQ's me right there. I am also finding that more and more independant landlords are doing the same. As a matter of fact, after three months of apt searching (my current lease runs out in March, and a rent hike is coming), I have found exactly 0 apartments that will accept myself and my fiance as tenants.

The laughable part of this all, looking back, is that between my fiance and myself we bring home about 40K/year (which is not bad for rural ND). However, it is hard to hold a job without a place to live.

I don't understand how a landlord can look at a bankruptcy 2 years ago, and tell a young couple with a 40K annual income that they are a 'rental risk' to a $350/month apartment....

Any ideas/suggestion/comments etc?

As a landlord, I want to have the best tenants in the place. I'm going to look for better candidates on paper. Currently my property is managed by a company and they give me final approval. If you were the only applicant I may ask for more money up front.

When I see that someone has a bankruptcy I think about why did this person declare bankruptcy in the first place? How did they allow themselves to get into the predicaments that lead to the overwhelming debt that they had to file bankruptcy? Did they just declare bankruptcy because they didnt' want to pay back the insurmoutable debt load? If they default on the lease what are my options going to be and how much liability is it to my lifestyle since I will have to pay the expenses if the rental income is not there.

Understand that if you defaulted on paying the rent for whatever reason it will affect MY lifestyle and MY wallet. I'm not willing to risk my own self just to be a nice guy.

LLL2 · 01-23-2005, 02:52 AM

Why don't you try to go buy a house ? Seriously,Buy now before your area blows up and homes prices go up to high.Plus if you don't like owning it you could always sell it and most likely get your money back.They probably won't worry about the bankruptcy if you show you have change from 2 years ago.Like paying cell phone bill,car bill,etc etc on time.Also if you put that a down payment they probably more likely will do it,because if you don't pay the house off ,they get the house back and keep the down payment and they can make even more money off the house.

Hardknock · 02-05-2005, 01:54 AM

Agreed. Why are you wasting your time with an apartment? Buy. The real estate market is still hot (for now.) There are plenty of mortgage companies who are willing to work with past bankruptcies to get you into a mortgage. Plus like LLL was saying, it’s secured debt. The mortgage company will always get the house if you can't make the payments.

01-22-2005, 01:08 AM	#2 (permalink)
arch13 Loves my girl in thongs Location: North of Mexico, South of Canada	Perhaps offering a larger deposit up front to potential landlords and being clear and clean about the banruptcy's is in order. By offering a larger deposit, you put your money where your mouth is. And in Business that's what matters. If you have a two person income of ~40,000 , then the apt price range your looking at allows you to have enough money to account for a larger deposit in your living expenses as a part of your income. __________________ Seen on an employer evaluation: "The wheel is turning but the hamsters dead" ____________________________ Is arch13 really a porn diety ? find out after the film at 11. -Nanofever

01-23-2005, 02:52 AM	#4 (permalink)
LLL2 Crazy	Why don't you try to go buy a house ? Seriously,Buy now before your area blows up and homes prices go up to high.Plus if you don't like owning it you could always sell it and most likely get your money back.They probably won't worry about the bankruptcy if you show you have change from 2 years ago.Like paying cell phone bill,car bill,etc etc on time.Also if you put that a down payment they probably more likely will do it,because if you don't pay the house off ,they get the house back and keep the down payment and they can make even more money off the house. Last edited by LLL2; 01-23-2005 at 03:27 PM..

02-05-2005, 01:54 AM	#5 (permalink)
Hardknock Republican slayer Location: WA	Agreed. Why are you wasting your time with an apartment? Buy. The real estate market is still hot (for now.) There are plenty of mortgage companies who are willing to work with past bankruptcies to get you into a mortgage. Plus like LLL was saying, it’s secured debt. The mortgage company will always get the house if you can't make the payments.