Someone will rent to them but it probably won’t be a very nice place.
As a landlord, I learned long ago to look at the *reason* for personal bankruptcy on an individual basis, divorce for example is a common reason why bankrupt but otherwise potentially excellent tenants are looking to rent.
Unfortunately, defaulting on a badly underwater loan often makes good financial sense, and if a applicant is currently employed and current on other obligations, it may even be a plus as other property managers may not be taking a closer look, and rejecting potentially desirable tenants out of hand.
Actually, I have found some very nice places in good parts of town willing to rent to people with foreclosures. With the high number of foreclosures occurring, the stigma has largely dissipated.
“Someone will rent to them but it probably won’t be a very nice place”
Actually, rental units couldn’t care less. I have friends and family that manage rental companies and none of them could care less that you walked away. They are not selling you a rental unit, they are leasing it to you. No rental company asks about your previous home ownership. They simply want the money. If you have a job and the money to pay, so be it. Plus, since you walked away from your mortgage you need a place to stay. They know that and know they can evict you for non-payment. Simple equation.