With so many homes being foreclosed on in recent months, the rental market has seen an influx of individuals who are now looking for a place to rent. While home values continue to fall, the rental market continues to increase. What this means for many landlords are that their homes will not be sitting vacant for long. This is good news for landlords but can be bad news for potential renters. With such a high demand for rental homes, the rent is often as much or more than what people were paying while in their own homes.
An active rental market may help stimulate home sales as investors purchase low-priced homes to use as rental units. This process will help lower the number of available home on the market while helping to create a floor under the unsteady housing market. As a nation, we have never before had to deal with such an unsteady real estate market; this has not only affected the values of our own homes, but has changed the way many of our neighborhoods look. Where we once had long-term neighbors, we may not be subjected to renters who come and go every few months. And if the rental property is not properly maintained, it can have a detrimental effect on the home values in the immediate vicinity.
If a prospective renter has recently experienced a foreclosure, this may have an impact on to the type of rental they may able to get. Many renters run a credit check on all prospective tenants, some may be more lenient than others if you explain your financial circumstances and what led to you losing your home. But others may see you as a bad risk and feel that if you were unable to remain current on your mortgage payments, you may have the same trouble paying the rent when it is due. Many landlords have had to change their renting techniques in order to handle the demand of so many renters.
Renting a home after foreclosure is something that can help you find an immediate place to live, while also repairing some of the damage done to your credit score. While you are renting, you can take proactive steps to rebuild your credit rating and ultimately you may be able to purchase another home in the near future. While losing your home to foreclosure can be traumatic event, you will not be in this situation forever. Use this time to rebuild your finances and your credit rating, doing this will make it easier for you to purchase another home in the future.