Most Landlords Say They Would Rent to People Who Lost Homes to Foreclosure, The National Association of Independent Landlords Finds
More than three-quarters (82%) of independent landlords say they would rent to someone who lost a home in foreclosure, assuming the applicant traditionally had good credit, according to a survey released by The National Association of Independent Landlords.
"Landlords typically won't rent to applicants with poor credit-and a foreclosure will absolutely slam someone's scores. The exception is when they see people who have paid their bills their whole life, but lost their job, can't meet their mortgage and must hand their keys back to the bank," said Tracey Benson, president of The National Association of Independent Landlords.
Despite recent credit problems, Benson said, applicants with a foreclosure can prove good risks, chiefly because they did once own their own home: "These people are used to taking pride in where they live. Often, they lost their jobs and homes through no fault of their own."
Increasingly, mortgage defaults stem more from lost jobs than ill-equipped borrowers who lost homes they never should have bought, Benson said. A thorough background check, like one conducted by The National Association of Independent Landlords, will indicate into which category an applicant falls-and whether financial woes are part of a recent spate of bad luck or a life-long trend.
"Because of this abundance of defaults, there is a greater need for rental property, so landlords should carefully vet applicants," Benson said.
The National Association of Independent Landlords polled 563 members from March 21 through March 25, 2011.
For more information, visit www.landlordassociation.com.