How Can I Get a Rental During A Short Sale?
Under what conditions would a landlord rent to someone going through a short sale that obviously cannot afford their home and is behind on payments? I have been asked this question many times by clients, and I can fully understand their concerns.
Many of my clients are behind on mortgage payments, sometimes for many months. They all know that their credit rating is the one thing most landlords do check. They wonder why a landlord would rent to them with bad credit. They fear that they will never be able to find a rental property and will be homeless after the short sale.
I have been negotiating short sales for many years, and I have been able to secure a rental property for each and every one of my clients. How can this be? There are a number of reasons:
1) Landlords care about the bottom line: Getting paid rent each and every month and on time. When I show them that my clients can afford the monthly rent, and I can back this up with proof of income (which I have because I am handling my clients’ short sale negotiations), the landlords are usually quite satisfied.
2) Most of my clients are transitioning from high monthly mortgages payments to monthly rents that are sometimes half in cost. I can clearly show the landlords that my clients are doing the right thing; they are transitioning into lower monthly housing expenses, which they can clearly and justifiably afford.
3) Most of my clients can show a history of paying other bills on-time, such as electric bills and water bills, each and every month. This further demonstrates to the landlord that the only issue that my clients face is the high monthly mortgage payments on their current home. That obviously puts them at ease.
Have there been instances when clients have been rejected by a landlord? Yes, but most of the time it has to do with issues unrelated to my clients’ credit rating. Sometimes it has to do with the pets that the clients own. Some landlords simply will not rent to tenants with pets. However, even this road block can sometimes be overcome with a higher initial security deposit.
In the end, all of my clients have been able to secure new housing with dignity. A number of them have come back to me after they have reestablished their credits and end up buying a new home!
Need to short sale your home? Call us today at 781-591-0977 and let us help!