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Old 10-16-2017, 04:42 PM
 
Location: Arizona
3,148 posts, read 2,709,098 times
Reputation: 6060

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Quote:
Originally Posted by tianwaifeixian View Post
Thanks Tommy! So what is a reasonable delinquency rate?
As for the criminal record, I do see there is one. But I can't see the details. Do you know how to get details?
If you can stay under 10% you're OK. Looking through my old reports here at my desk I see that I've had a few @ 2%. They have credit scores of 790, 721 and 771. I have 1 @ 15% DR with a 668 score - FWIW. I do think there is a real correlation with timely payers and higher credit. Credit should not be ignored.

The detail in the criminal will tell you the offense, statute and where the case was heard. It SHOULD give the results and sentencing in the notes for each offense. If you need to go deeper you'll have to get case records from the courthouse.

Last edited by tommy64; 10-16-2017 at 04:54 PM..
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Old 10-16-2017, 06:16 PM
 
116 posts, read 256,564 times
Reputation: 59
Quote:
Originally Posted by tommy64 View Post
If you can stay under 10% you're OK. Looking through my old reports here at my desk I see that I've had a few @ 2%. They have credit scores of 790, 721 and 771. I have 1 @ 15% DR with a 668 score - FWIW. I do think there is a real correlation with timely payers and higher credit. Credit should not be ignored.

The detail in the criminal will tell you the offense, statute and where the case was heard. It SHOULD give the results and sentencing in the notes for each offense. If you need to go deeper you'll have to get case records from the courthouse.
Thanks again Tommy! For criminal record part, I do not see the offense, status, all I see is the state, the date, court record id, component id, and the component description, which is NC admin office of courts demographics criminal. I do not see the offense type.
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Old 10-16-2017, 07:40 PM
 
Location: Riverside Ca
22,146 posts, read 33,276,581 times
Reputation: 35433
Quote:
Originally Posted by tianwaifeixian View Post
Now the market is slow. The application we got all having some issue on the credit history. Even though our property is in a very decent location:-(

We have rejected 3 applications so far due to poor credit history or collection history.

Ideally we'd not rent to this person. But we have to pay for vacancies. So I'd like to know a little more about what are the things I really need to care about and what are the things that maybe ok. I heard ppl say tha medical collection is ok. Some ppl say student loan collection is ok too but some say default on student loan is a big thing. So we do want to know more about it. We are in the process of checking previous landlord. They were apartments.
If you wouldn't rent to him as a rule then DONT break your rules.

Sometimes a rental stays empty if you cannot find qualified tenants. For example right now I have a empty rental. Which is staying empty because I am not finding tenants who qualify. I have a small leeway on credit score if everything else passes. So far I have not gotten tenants that pass my requirements. A few that I wanted to rent to one we couldn't come to a understanding as I gave some concessions and they saw that as a way to start negotiating everything. Thank you good luck elsewhere.
Another tenant which I though would be great and I was ready to sign applied elsewhere that morning and they accepted her. She took them because she gave them a $3000 deposit. So I lost that one. I really liked them and I was ready to sign.
But you move on. Sometimes a rental stays empty and you need to prepare. I rather leave it empty than to get a tenant where I have to completely ignore all the requirements I set forth.

Right now I just turned away a applicant simply because their income was too low. I turned away a few. Their rent to income ratio was at 50% already. I didn't bother going much further after seeing they had bought a new car further pushing them higher on nnthe DTI scale. No thank you. To me that's just too high a ratio. I dealt with that tight walking tenant and I dont care what happens I was the one that was paid last.
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Old 10-16-2017, 08:16 PM
 
Location: Silicon Valley
18,813 posts, read 32,304,245 times
Reputation: 38564
Quote:
Originally Posted by tianwaifeixian View Post
Just got an application. The rent is $1600. Tenant shows $8000 as pretax monthly income. The credit score is 646 according to tenantbackgroundsearch.com. What concerns me is that the tenant has 10k student loan (national collegiate trust) in collection and 7-8 medical bill collections with amount of several thousands. And the tenant also has about 190k active student loan. Any suggestions on whether I can rent to this person or not?

Thanks a lot
I'd pass based on bankruptcy risk. They can't file bankruptcy on the student loans - but they CAN file bankruptcy on the medical bills. And since they are stretched to the max with student loan payments they can't get out from under - their only option is bankruptcy to get out of the medical collections.

Even if they decide to try to defer the student loans, that can only be done based on their income. Which means, losing their income so they don't have to make the payments. Maybe moving back in with Mom and Dad?

But, if they decide to file bankruptcy, they can include whatever they owe you in it. PLUS, they can often delay eviction if they file for BK. Which means, you can't kick them out, they would have owed you even more money that you can't recoup, could leave the place destroyed - and you can't collect from them.

The easiest way out of it is to say that the credit report caused the denial. You're always safe to deny someone with collections and too much debt to income ratio.

Student loans are such a sad story in the US today. Just watched a PBS Newshour show over the weekend about them and how so many baby boomers who would normally be ready for retirement are still trying to pay of their own and their kids' student loans. A shame.

But, you have to take care of you, so I agree with others who say you should deny this applicant.
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Old 10-17-2017, 04:33 AM
 
10,746 posts, read 25,895,618 times
Reputation: 16024
Quote:
Originally Posted by tianwaifeixian View Post
thanks! How about student loan collection? Someone says it is huge deal some days it is not. By the way, this person has around 5k balance in bank account
He claims to make 8k a month and yet only has 5k in the bank as well as quite a bit of unpaid debt in collections? Yeah, I'd pass.

Student loans are way of life for many people...so are medical bills, but if they are paying those loans/bills that would be a different story. Collections means they are not paying those bills even though they have the means to do so. Pass.
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Old 10-17-2017, 04:37 AM
 
10,746 posts, read 25,895,618 times
Reputation: 16024
Quote:
Originally Posted by tianwaifeixian View Post
I wish I could get normal tenant and do not have to deal with this!
Hire a property manager and let them vet your applicants. Tell them your rental criteria and let hem do the leg work with you having final approval/say.

You need to pass on this guy...he's too much of a risk.
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