I’ve been terribly worried about one of my friends who just received notice of foreclosure.  What has troubled me is where does someone go after foreclosure?  Forced loss of a house has a terrible impact on your credit score and with most landlords now requiring a credit check, how can you find a place to rent?

Key is to find a landlord that only has one or two rental properties rather than a giant apartment complex.  The local paper, craigslist, and family or friends are the best options for where to search.  In addition, you can offer to put down a higher deposit  or prepay several months rent.  If this isn’t an option, find a rental BEFORE the foreclosure hits your credit score.

The challenge is if you’re being foreclosed upon, your credit score likely already has some negative hits from missed mortgage payments.  If you keep paying your other bills, however, it could be viewed positively by a landlord – especially if your mortgage payment was double (or much higher at least) than what the rent payment would be.

Don’t give up hope. It may take a few years, but things will look better.