How an Eviction Can Affect You Buying a Home

A question came across my desk last week about aIf someone has filed an eviction lawsuit against you
woman that was in a serious situation and she wasn'tto just get you out of the property then you may
sure how to handle it. This woman lets call her Ms. Xbe able to talk with the landlord and work something
was in the process of moving from a rental propertyout before it gets to that point or if they have
to a home that she was buying.already started the eviction then move out quickly.
She was almost finished giving all of the informationAfterwards you can ask the landlord for a letter of
that she needed to give the bank to complete herexplanation as to why you were evicted. If the
loan application when she got a call from her loanlandlord files a suit against you for money then this
broker. While he was going thru the steps of gettingcan have the biggest impact on you trying to buy a
her financed he noticed that she had an eviction onproperty.
her credit. He asked her what happened and whyWhen the landlord wins a judgement against you that
she had the eviction. The eviction had come from heris an automatic red light to lenders. You will either
previous landlord not the one she had now and shehave to pay off the judgement before you can buy
said it was over a disagreement with the last monthsthe property or you will lose your chance of
rent.purchasing a property altogether. The best option in
Unfortunately for Ms. X this stopped her from beingthis case is to talk with the previous landlord before
able to buy her new home. Ms. X approached me andyou apply for a loan and try to workout some form
asked if there was anything that could be done. Iof a repayment agreement to at least show the
told her what I am now telling you. In almost everybank you are trying to correct the situation.
case of eviction there are two parts... the first part isIn either case an eviction may not be a death blow
the eviction to get you out of the house. Thewhen it comes to getting financing but a little
second part is the judgement or suing you to getproaction can get you a lot farther than a surprised
back rent or damage money for the damaged youreaction.
may have caused the property.