Foreclosure stigma haunts would-be renters

Some landlords turning away rental applicants with mortgage baggage

(MSNBC) -- As if losing a house on the court steps wasn't enough, some former homeowners may find themselves turned away by apartment owners spooked by the foreclosure history on their credit reports. One Virginia couple ended up living in a hotel after their foreclosure, according to Trish Lynch, a trainer and former credit counselor at ClearPoint Financial Solutions, who worked with them. "No one would rent to them. And the hotel is costing them $3,000 a month to stay there," she said. Lynch recommended they try to rent from a private owner or individual who might be more lenient on credit checks, but who could also ask for higher rents to cover their risk. So far, the couple's still stuck at the hotel.