If you are like me and have rental properties the question arises "what to do with people who have lost their home to foreclosure?"  Personally, I believe this gives us landlords a good market for our rental properties. There are many people who had homes and lost them to foreclosure and now need a place to live. Since their credit is severely damaged for several years at best, I think this is a good opportunity for us landlords to get a better class of renters. If you figure these people, at one time qualified for home ownership, I would think "most" of them would be good candidates for renters, at least for a few years before they can again be homeowners. All I would want to be sure of, is their job is secure and the rental price well under what they were trying to pay for house payments.  "Most" should be able to make consistant rental payments of up to, say 70% of their previous house payment. I probably would not go over 70% unless there were other considerations, but if they went into foreclosure trying to make $1500 mo. house payments, I would rent them a home for $1000 and feel pretty comfortable. If we landlords only look at credit scores, I think we may miss a very good opportunity, since the damage done to a credit score by a foreclosure is so great. Look a little deeper and you just may find a good renter for a number of years.