After Foreclosure: Renting

Foreclosure is one of the most difficult things to deal with. However, there are options for after foreclosure. While you probably will not be able to buy a home immediately, you can usually find a way to rent. Unfortunately, many landlords are interested in your credit score, and a foreclosure can leave you with serious credit problems initially. CNN Money reports on what one family did in order to get around this problem:

In April, having saved what they would have paid in mortgage, they relocated to Elyria, Ohio, where Stephanie has relatives. Unfortunately, their credit scores had dropped so low that it was difficult to rent — much less buy — a new place. So Stephanie’s mom bought a house and rents it to them.

Of course, not everyone has this option. However, there are some landlords who might be willing to take a chance on you if you are willing to pay a higher security deposit. You may also be able to explain extenuating circumstances that led to the foreclosure, such as job loss, illness or some other misfortune. Some are understanding. But you may have to prove that you can make the rental payments.

There are also opportunities to rent the home from the new owners. However, such positions, including right-to-rent, are not usually overly attractive to homeowners who have been dispossessed.