Forbes has an article about distressed homeowners re-entering the rental market as tenants after a foreclosure.
Many are having difficulty renting and there are plenty of reasons why.
Foreclosures are bad news for some people, unless you’re a real estate investor who specializes in them.
But a tenant with a foreclosure history offers more risks for the landlord. Heaven knows we have enough risks we have to deal with as it is.
“They need to know they’re going to get paid,” Jane Garvy, president of the Illinois Rental Property Owners Association says.
And she’s frankly hitting what we landlords are facing squarely on the head.
The article goes on to point out more problems renting to tenants with blemished credit because of a foreclosure.
These second time renters are re-entering the rental market with factors that are not in their favor.
That’s why I strongly disagree with Trish Lynch, who is a former credit counselor at Clear Point Financial Solutions.
She advises distressed homeowners to seek out a rental before the foreclosure goes through.
Since many of them are strapped for cash, anyway, I don’t see how they can come up with the first month’s rent and deposit, but maybe I’m jumping ahead here.
However, just having spent the entire morning with a prospective tenant who kept hedging on certain facts I needed to know, I’m speaking out of exhaustion from having wasted a lot of time and effort with this person.
Besides, what make Ms. Lynch so sure the landlords won’t eventually find out? Will that really be good for the tenant/ landlord relationship?
Read more about distressed homeowners becoming tenants again in Foreclosure stigma haunts would-be renters