If you are in foreclosure or facing mortgage foreclosure, you may have asked yourself if you should rent while in foreclosure. If you are not paying your mortgage, you are piling up derogatory items on your credit report and lowering your FICO credit score. The logic is, if you just wait until foreclosure, your credit will be too poor to rent a house.

In my Mortgage Relief Formula home study course, I give away a free 25 page report on keeping your home, avoiding foreclosure, and handling credit card debts without bankruptcy. I discuss how we have interviewed a well regarded bankruptcy attorney on one of the audio CDs that comes in the course. The lawyer points out that a lot of clients will stop paying their mortgage and save the money in an account instead.

It is amazing how long someone can live in a house without paying the mortgage. Eventually the house will be sold at a court sale or by a trustee sale, depending upon where you live. Then it takes awhile longer for eviction to take place. You were the owner but now you are a tenant and the normal eviction process has to be followed for legal eviction. In some states that can be a month or two extra beyond the sale period.

I do not recommend people do this but people do it. If you just can't pay your mortgage, should you rent while in foreclosure so you can rent while your FICO score is high enough?

There are two ways to rent a property. One is to go to a large landlord or a property that is professionally managed. They will run your credit and will often not rent to you if your credit score is too low. But the other way to rent is to approach small landlords and they will often rent to you even if you have poor credit. They often do not run your credit. And sometimes you can pay 3 months in advance so they are protected.

Few landlords will turn down 3 months of prepaid rent. And this way you can rent even if you have very poor credit at the moment.

It is never easy facing a foreclosure situation. But if you stop making your payments, you may want to put money away so you can rent when you really have to move. At that point you will have cash to prepay some rent and you can often find a good place to rent that will rent to you despite your foreclosure.

And watch this video on short sales and foreclosures. 

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And see sometimes non-judicial foreclosure is a better option and finding an expert short sale service to handle your mortgage short sale

By the way, I rent and I agree with this blog article that rents are where it's at. And why the rate of homeownership is falling off a cliff.