Renting to an individual who Filed Chapter 7 Bankruptcy and foreclosing on home

[Kenneth Davis]

Would it be much of a risk to rent on a month to month to an individual who filed  chapter 7 Bankruptcy back in 2012 and is forceclosing on his home this year? I have only had 2 applications turned into me, in a  2 month period, a now reduced rental that is only $575.00 per month. He has a good paying job and makes over 3Xs the rent, though if appearances mattered he is something of a country boy that loves his guns the confederate flag and camoflouge wardrobe from head to toe. The appearance issue was only a concern due to the neighboring tenant who has stayed with me now for nearly 4 years now which I dont care to disturb with a new renter who is far different in lifestyle. I have protective clauses that shield my tenants from harrassment from other tenants; so hope this aides my concern on that.  I recieve several inquiries weekly but from perhaps every other living creature of a renter than decent law abiding ones and 2014 will be memorable for me.

[Ashley Mullin]

@Kenneth Davis If the bankruptcy has been discharged then he can not include his rent  in the bankruptcy.  If he is currently going through it, then at anytime he can add you into it.  If that happens then you have to hire an attorney and you can't do a normal eviction.  The eviction would have to go though the bankruptcy court.  He could be in your property for months before you can gain procession of your investment.

I always stay clear of bankruptcy, but I don't mind people going through foreclosure.  I do make sure that the rent amount is less then the mortgage payment and their work history is strong!