Once the foreclosure process has taken place, you need to concentrate on finding a new place to live as soon as possible so your life can begin returning to normal. When you’re moving to a new home after foreclosure, keep the following top five tips in mind to ensure a smooth transition.
Rental Style Options
You must understand the type of rental agreement you are entering. The monthly rental option requires no rental agreement to be signed. You are free to move out at any point in time, but your landlord may make changes as he sees fit. Your landlord can ask you to leave at any time, and may change the rent amount. American rental law requires him to provide you with a thirty day notice of the impending changes.
A lease rental option provides the renter with more security. A rental lease is a legally binding contract that defines the terms of the lease agreement. The standard length for a lease is one year, but other time options do exist. The lease prevents the landlord from raising the rent, which does protect the renter. However, the lease signer becomes legally obligated to pay the rent for the entire lease period. If you decide to move again before your lease is expired, you will be held legally accountable for your remaining lease term’s worth of rent.
Your Credit Score
The majority of landlords no longer consider your credit score when you are applying for rental. The economy has so severely bruised American credit scores with incidents like foreclosure and medical bills that it is no longer considered a reliable means of judging a person’s character. If the place you are wanting to rent does still check credit scores, you have a roughly month-long window between the foreclosure and a 150 point drop in your credit score. Finding a home to rent quickly can help you temporarily bypass the credit drop.
Your Criminal Background
The background check is the landlord’s way of protecting the property and other tenants from those who have violent backgrounds. The modern landlord will only conduct a background check on the lease signer. While a criminal history doesn’t automatically bar you from being able to rent a home, the severity of your crime may become a factor in renting difficulties. Minor crimes might be overlooked by modern landlords, but more serious criminal activity will require an explanation. If you have a criminal background, consider having your partner sign the lease instead.
Your Financial Explanation
Be prepared for your landlord to ask financially based questions. While these may make you uncomfortable, your landlord has the right to determine if your current finances will enable you to afford the rent and the utlities. You will be asked about your job, your average paycheck amount, and your outstanding debts. Be honest with your landlord about all of your finances, including your foreclosure if the topic comes up.
Protecting Your Family
While you are living in a rental home, you are legally responsible for all damages that you create. For larger situations such as a leaking roof, you are responsible for informing the landlord about the problem immediately. To protect your family, inspect the rental home thoroughly before signing the lease. Make careful note of all damages on the lease before signing. Once the landlord hands you the keys, photograph all damage in the home. Print the pictures, seal them in an envelope, and mail them to yourself. Place the sealed envelope in a safe location without opening it. The postmark on the envelope is considered a legal dating method in court, so long as the envelope is still sealed.
