Hello Everyone,

I need a little help. We are in the process of renting a home to a family. They check out fine with income and job status but have a Chapter 7 bankruptcy back in 2008. Are there any potential pitfalls that I should be aware of on a person with this on their record?

 

You would have to see if the risk of having it on there outweighs the risk of them not paying in the future. If they have shown good job retainment and have no other problems (i.e their debt-to-income ratio is good), then I'd say go for it. It would help them get back on their feet.

If however, they have other credit problems, and you should check this out, this is a black flag and should send you to other applicants post-haste.

 

So racist

The correct term is Red Flag.

tsk tsk tsk


On a serious note to the OP.....it's a significant increase in risk, if there is a demand for the home you are trying to rent, I'd offer to rent it to someone else.

 

request deposit, 1st and last months rent. Sometimes requiring that much money will discourage someone from renting.

 

Depends on the eviction laws and tenant act in your state/city. If evictions are quick and easy I would be more open to it. In the town I own a rental property it's a 3 month process to get an eviction so I would rather let it sit a month and get a good tenant.

 

 

Requesting 1sr and last month's rent will not always help the situation. YOu need to run a credit check also.

 

We have a chapter 7 from our stores, however, our credit history was flawless and not only did we never miss any payments... we were never late on anything. Anyone pulling up our credit can see that, which is why we have not had a hard time with anything (so far). Our scores also bounced back almost immediately since we reaffirmed some debt.

You should be able to see what their credit history is like to determine if they are really a risk, or if something unforeseen happened which caused their filing...

Asking for a deposit, plus 1st and last month is also a viable option as it gives you a little more piece of mind... but the biggest thing will be to really look at their credit report.

 

Thanks for the tips. We extended the offer to the renter. She had the security deposit and 1st months rent and also had no other credit issues besides the BR. She explained to my prop manager that she went through a divorce and thats why she has the BR. I will keep my fingers crossed.

 

I generally wouldn't worry about it. There can't be much debt following them around. You shouldn't have any issues.

 

Was it from a strategic default on their house? Send them packing.

 

that's pretty much normal for divorces it seems.

 

ok douche asshole on a high horse! lol, get with it man, what you are suggesting is called discrimination, and its just plain ridiculous.

Strategic defaulters are the only ones willing to be honest with themselves and the reality of this horrible market...

 

So we can't "discriminate" against someone that refuses to pay the bills they signed up for?

 

yes, because only Black people default on loans.

Bubba, you make me laugh. But not with you...

 

The fuck does that have to do with anything?

 

My guess is that if someones says they have a credit issue in their past and you find out it is because they decided to default (on purpose) on their mortgage the smart thing to do would be send them packing.

Someone defaults there because it benefits them then who is to say they wouldn't do it on the rent as well

 

My guess is that he was poking fun of BubbaMarkTL for this gem: https://acurazine.com/forums/money-investing-17/better-just-stop-paying-mortgage-699773/

 

^^ Haha - sorry, should have been red text.

 

Hi Bubba- glad to see that you're still around. In case you're not aware a landlord CAN discriminate on financial matters. Finances are not related to AGE, SEX, or RELIGION. It's a free world that allows people like yourself to walk away from their obligations and people like myself to elect not to rent to people like you- isn't this great!

As far as the original thread's question. I have the following advice:

1. always check references from past rental experience when applicable.

2. always have prospective tenant pay for the credit check- the amount will depend on state. People that have crap credit will never want to pay $25 or more to hear that they have crap credit- they already know it.

 

Thanks for the tips. This is our first time renting so we are keeping our fingers crossed as we move to NC.

 

Ahhh

 

Long distance rentals can be a real PIA