One of the challenges facing sellers with compromised credit is finding a new home to move in to. Difficulty in making mortgage payments often leave homeowners with less than perfect credit. While landlords obviously prefer good credit, finding a rental is not always as difficult as you may think.
One of the things I tell my clients when they're considering transitioning into a rental property is to try and keep their other monthly payments current. Landlords are aware of the difficult economic climate, and are often sympathetic to missed mortgage payments if other monthly payments are kept current. These payments include credit cards, car payments, cell phone bills, utility bills, student loans, and all other revolving debt.
If your other payment history is less than perfect as well, a letter of explanation will often go a long way. Did you have medical issues, job loss, increased expenses, etc.? A heartfelt, truthful explanation will often help sway things in your favor. Also, complete honesty and transparency in your application is KEY. Everything pops up on your credit report, so any discrepancies between the two (and landlords almost ALWAYS require a credit report) will raise HUGE red flags.
I have also had clients agree to payroll direct deposit as a way of assuring the landlord that rent will be paid in a timely manner. If your employer has direct deposit, you can agree to arrange to have your rent paid directly to the landlord's account from your employer.
Landlords often ask for bank statements with the application to rent. If you can show money in a savings account, this will help your chances of securing a rental as well.
Call me with any questions regarding finding a rental, I'll be happy to assist in any way I can!