Mitigating the Effects of Eviction

The eviction moratoriums put in place during 2020 will soon be coming to an end, which means millions of Americans may soon be facing homelessness and the repercussions of eviction. Having an eviction on your record can bar you from finding housing and damage your credit score, creating even more barriers to finding your footing again after such a turbulent year. Here are some ways you can mitigate the effects of eviction.

 

Pay Off Judgements

If you have been evicted and the judge placed a monetary judgement against you, pay it off as quickly as possible. Though an eviction won’t show up on your credit report, it will show up on other consumer reports that property management companies tend to run. Your credit score will be impacted by unpaid collections accounts and can make it harder to secure loans or even get a credit card.

 

Pay Rent

Even if you are “renting” space on your auntie’s couch and only chipping in on the utilities, create a record of all payments made and the informal rental agreement. This can be vital for demonstrating responsibility to potential future landlords.

 

Build Goodwill

Pay back your previous landlord as quickly as possible. When you show good faith and put things to rights with your previous landlord, you may be able to get them to remove derogatory marks on your credit report. You may also request a letter of reference from the landlord that will go a long way with future landlords.

 

Gainful Employment

If you lost your home due to unemployment, the first thing you want to focus on is getting a job. Most landlords want 3 months proof of employment. They need to know you can pay your rent. Factor this time frame in with whoever you are crashing with while getting back on your feet.

 

Find a Cosigner

If you are out of time and need a new place asap, it may be time to reach out to a relative to ask if they can cosign for you. Only reach out to a potential cosigner that has impeccable credit. Keep in mind that being a cosigner is a huge risk and if you fail to pay your rent, they will be held responsible so not everyone will be willing to put themselves on the hook for you.

 

Losing your home can be traumatic and stressful, but it isn’t insurmountable. By taking steps and being proactive, you can regain your stability and security.