Landlords: Would you rent to a family who had been foreclosed?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Nope. Not a chance. Take the time to find the right person, then treat them well. It makes landlording the easiest business around. (11 years, 7 properties, no problems). I'd rather leave it vacant than rent to the wrong candidate, and it's served me well over the years.

Is this your main job or hobby/part-time. I am in similar position w/multiple rentals.

I'm a SAHM and but I'd still say part-time for sure. There are busy times when I might work 3 or 4 hours a day but those days are rare. I would estimate I spend about 5 hours a week, on the average. I have lockboxes on all the houses and a tested, trusted team of repair-people so if something breaks I can send the repair-people in without visiting the property myself. We fix things right away, replace appliances as they age, keep the houses updated with new carpet and paint (we just replaced a perfectly functional but UGLY kitchen including cabinets, counters, and flooring), and treat the tenants with respect. In return, we expect rent the DAY it's due, choose tenants carefully before they move in, and expect the house and outside (and neighbors) to be treated with respect. It's been great.

Everyone I know who has a horror story has skipped several steps in the "due diligence" process of picking tenants. I swear I don't even need to run a background check anymore, I've done this so much. Do they show up at the open house during the advertised hours? Are they neatly dressed? Do they ask normal questions? Do they fill out forms correctly? If we have a meeting, are they on-time? Did they get lost on the way? I swear that's 90% of the screening process.

Not to hijack, but ... do you have a trusty handyman in the Adams Morgan area to recommend?

[Anonymous]

Anonymous wrote:
Everyone I know who has a horror story has skipped several steps in the "due diligence" process of picking tenants. I swear I don't even need to run a background check anymore, I've done this so much. Do they show up at the open house during the advertised hours? Are they neatly dressed? Do they ask normal questions? Do they fill out forms correctly? If we have a meeting, are they on-time? Did they get lost on the way? I swear that's 90% of the screening process.

So did you get a good vibe from this family and that's why you are asking or am I confused and you are not the op?

[Anonymous]

NO!

[Anonymous]

Anonymous wrote:

Anonymous wrote:
Everyone I know who has a horror story has skipped several steps in the "due diligence" process of picking tenants. I swear I don't even need to run a background check anymore, I've done this so much. Do they show up at the open house during the advertised hours? Are they neatly dressed? Do they ask normal questions? Do they fill out forms correctly? If we have a meeting, are they on-time? Did they get lost on the way? I swear that's 90% of the screening process.

So did you get a good vibe from this family and that's why you are asking or am I confused and you are not the op?

People in DC know how to play the game very well. The scoring starts on the credit check.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Some people foreclose on a house for different reasons. My mom foreclosed on a house, Detroit-area though, but always paid her mortgage on time. She had gotten ripped off by a contractor and she didn't have the money to re-do the repairs. Had to let the house go. Anyway, some people foreclose for different reasons.

Still not a good history , except she blames others

Thanks, for reminding me. You know so much. How do you do it.

[Anonymous]

Depends on whether I was having trouble renting out the place. If someone who hadn't had a foreclosure applied too, they would probably get it.

If I connected with someone and they seemed honest, I might rent to them but would likely ask for 2.5 months security.

[Anonymous]

I skipped the credit check for my current tenants. I had spoken to them so many times and really felt like it was unnecessary. I had them fill out the form and agree to pay for it but never ran it. They were clearly very willing to do it and I just felt like it was a waste.

I asked for employment letters and saw that the wife was a dr at a local hospital and the husband had a good job at a large company with a very good salary.

They were just very solid people. I think I would have rented to them if they had a foreclosure. They just kept telling me how much they wanted the place, didn't nickel and dime the rent or security and emphasized they would take care of the house as if it were their own home, They called to tell me about themselves and their family and that was worth more than a credit check. Those have errors too so nothing is 100%.

[Anonymous]

OP here. Thanks for the responses. The family told me upfront that their house is foreclosed. It shows up on the credit checks. I have such a good connection with the wife and want to see if I should give people a chance to get back on track. She seems like a solid person. However, the credit check reveals that the house's mortgage is similar to the rent (excluding tax and insurance) I am asking for my rental. Red flag?

[Anonymous]

Anonymous wrote:OP here. Thanks for the responses. The family told me upfront that their house is foreclosed. It shows up on the credit checks. I have such a good connection with the wife and want to see if I should give people a chance to get back on track. She seems like a solid person. However, the credit check reveals that the house's mortgage is similar to the rent (excluding tax and insurance) I am asking for my rental. Red flag?

This would be a deal breaker for me, if they lost a house with a 2,500$ (or whatever the amount) mortgage and your asking that in rent no way. They have shown they can't make that kind of payment, if you were asking half or less than the home they lost I would say maybe because they are clearly scaling back and trying to get back on track financially.

[Anonymous]

Did they say why they foreclosed on the place? I also think if they are starting over, they'd want cheaper but no taxes, insurance, upkeep is a lot less. And sometimes in DC, there is no cheaper option. If I did go with them, I'd ask for a two month deposit just to cya.

[Anonymous]

Anonymous wrote:I skipped the credit check for my current tenants. I had spoken to them so many times and really felt like it was unnecessary. I had them fill out the form and agree to pay for it but never ran it. They were clearly very willing to do it and I just felt like it was a waste.

I asked for employment letters and saw that the wife was a dr at a local hospital and the husband had a good job at a large company with a very good salary.

They were just very solid people. I think I would have rented to them if they had a foreclosure. They just kept telling me how much they wanted the place, didn't nickel and dime the rent or security and emphasized they would take care of the house as if it were their own home, They called to tell me about themselves and their family and that was worth more than a credit check. Those have errors too so nothing is 100%.

Those kind of people don't get foreclosed on.

There is a direct relationship between foreclosures, income and job type.

[Anonymous]

Anonymous wrote:OP here. Thanks for the responses. The family told me upfront that their house is foreclosed. It shows up on the credit checks. I have such a good connection with the wife and want to see if I should give people a chance to get back on track. She seems like a solid person. However, the credit check reveals that the house's mortgage is similar to the rent (excluding tax and insurance) I am asking for my rental. Red flag?

What is their income, job history and savings and why did they allow foreclosure to happen. These are questions I would ask and still probably would pick someone else.

Why are you so desperate, are you having issues renting out the place?

[Anonymous]

I would lean towards giving them a chance. Check and see if there has been other legal action against them. Look in court records. try to feel out why they think it will be different this time, has their income increased? why exactly did they get foreclosed? was the maintancenc too much for them or just the mortgage? I would try to get additional references to call and due whatever dd I could to make sure they are not out to scam me. It's a good thing to give someone a second chance but I would try to be really careful to make sure I am not about to become the victim of a con game.

[Anonymous]

Yes, I would give a family a chance if:

the mortgage they had was so high they could have realistically never made the payment on their income and the rent I was charging was much lower

AND

they had steady, long term employment

[Anonymous]

Anonymous wrote:OP here. Thanks for the responses. The family told me upfront that their house is foreclosed. It shows up on the credit checks. I have such a good connection with the wife and want to see if I should give people a chance to get back on track. She seems like a solid person. However, the credit check reveals that the house's mortgage is similar to the rent (excluding tax and insurance) I am asking for my rental. Red flag?

Yes yes yes! Red flag! Huge red flag! Do not rent to these people, regardless of the warm and cozy feeling the wife gives you. Responsible people who pay their rent do not get foreclosed on for the similar amount. It's insane. Banks try to work out deals with people. Foreclosure is a last resort. These people clearly weren't paying anything. Do not rent to them.