Ok, walking away from my home. Should I stay until they kick me out or find a place?

[nobody_u_know]

After talking to several people who have not been very helpful, we will be defaulting on our house shortly. Question I have is should I live in my home until they kick me out and it goes into foreclosure or should I try to find a place to rent first? If I stay in as long as I can, I can save some money, but my credit will be tarnished and will be harder for us to get a place to rent. There are also some small landlords who does not check on credit, so maybe I can look into that too. I'm going to try to see if we can short sell our home as well, but so far I have had bad luck with every "professional" out there. You name it: lawyers, bankers, accountants, real estate agents. The ones I've met have been very unhelpful probably because they know they will make little or no money off of me. Just years ago, I had tons of creditors calling me for business. Now it's a different story. My credit score is still good, it's just that my house is underwater.

[nobody_u_know]

I was thinking about finding renters to rent our home so we can downsize into a smaller, affordable home, but can't do that either. They want a large downpayment on the new mortgage or my first mortgage shouldn't be under water. I shouldn't be surprised. We have customers who are millionaires who can't get loans.

[jIM_Ohio]

fill out all rental applications now
then time the move when appropriate

finding a private landlord, as opposed to a corporation, is probably wise

[momcents]

As a small property landlord (a single-family residence of my own, plus DH is manager of my father's two buildings - both 8 units), I can tell you that in this economy, we will want to see a copy of your credit report. We request all potential renters bring us a copy of their credit reports (from a website is fine). No credit reports, no chance renting one of our apartments.

[littleroc02us]

My credit score is still good, it's just that my house is underwater.

That that goes to show how bunk a credit score really is. My advice in your situation is to try and get a buyer by advertising the house yourself and then go to the bank with an offer. If you have to default on the house, you can stay there until the sheriff comes to throw you out. I have a friend going through the same situation, I told him to save tons of money for they may turn around and sue you within a year or two after they sell the house at an auction for the difference they don't collect. If you have to default I hope it's because you cannot afford it anymore due to job loss or reduction in pay. Good luck!

[LaVicky]

House

Was just listening to Dave Ramsey's radio show the other day and a caller called in with the same question you are asking.


He also said not to apply at large complexes, or places through companies for a rental, you want Private Owners, they are more likely to take you, so start looking that way, look through classified ads, post your own ad also, say what you are looking for! Housing wanted! Try Craigslist also.

You can use a little time in the house to save up some before you go also.

My parents used to rent apartments and would take people with credit issues but also required a larger deposit, first last mos rent, stuff like that. So perhaps saving for that if you need it if you have a problem finding a place.