Thursday, June 25, 2009

Can I get rental assistance if I am in foreclosure?

My home is in foreclosure, is there financial assistance for first month rent, security deposit and cleaning fee for a rental?

I got a call today from a client that is scheduled for foreclosure next week and he wanted to know if the security deposit, cleaning fee and first month rent would be reduced (or waived) since he was in foreclosure and financially strapped. The answer is 'usually not'.

The security deposit is insurance for your new landlord in the event you do not pay your rent. This gives them a buffer so when they evict you , clean it up and get it re-rented your deposit covers what is hopefully only the month they 'lost'. If you satisfy the terms of the lease the security deposit is usually refundable.

The cleaning deposit is used when you vacate the home and it is typically non-refundable. It doesn't matter if you leave the place in immaculate condition it still needs a good thorough cleaning.

Some landlords will allow you to split your deposits out over a few months but most feel that if you cannot provide move-in costs you are probably going to have a difficult time making rent.