Re: cable bills in collection - Landlord Forum thread 332493

Re: cable bills in collection by CCRider (CA) on March 22, 2015 @23:40

Any collection is a red flag. If it was one collection for a large medical bill, I might have been more lenient. But, someone who lets a $100 bill of any kind make it all the way to collections, is going to be a problem tenant. Especially, if they never paid it off.

Now, if the collection was several years ago, and it was paid off, and everything has been perfect since, and employment was stable, and they basically had no debt, and their current landlord and last landlord loves them - I might have considered renting to them.

Unpaid collections are a bankruptcy waiting to happen, in my opinion. If they end up owing you rent that ends up a judgment, what's their way out? Bankruptcy.

I'd rather rent to someone with a fresh bankruptcy. At least they couldn't include me in another one for roughly 10 years.

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Re: cable bills in collection by J (FL) on March 23, 2015 @09:24	[ Reply ]

Thanks CC... Do you use a minimum cutoff score, or just look at the items on the report? Personally I've been finding that using a minimum gets rid of most of the duds, but some good tenants too.

Re: cable bills in collection by CCRider (CA) on March 23, 2015 @10:26	[ Reply ]

No, I did not use a cut-off score. I looked at the overall picture. For instance you can have someone with a fresh bankruptcy, where they only filed because of a foreclosure and/or maybe some medical bills, but they otherwise paid everything on time and have long term employment. And you can have someone with a higher score with a bunch of unpaid collections and no landlord references. I never had anyone question me about how I denied one applicant over another based on their credit score. When you tell an applicant they are denied based on credit, they aren't surprised. And I knew if fair housing ever questioned me, I could make a good case on all of my decisions. Plus, my building looked like the international house lol. It would have been hard to say I discriminated against anyone in a protected class.

Re: cable bills in collection by Anonymous on March 23, 2015 @10:25	[ Reply ]

Exercise caution in the case of a Ch 13 bankruptcy -- the new landlord CAN be pulled into the existing bankruptcy payment plan during it's 5-year course or after. I've also heard of post-acquired debt being pulled into a Ch 7. I would steer clear of anyone with a bankruptcy less than 10 years in the past.

Re: cable bills in collection by J (FL) on March 23, 2015 @11:04	[ Reply ]

@anonymous But if it's more than 7 years in the past, they are allowed to file for BK again and still pull you into it, right? Doesn't this just result in the same problem?

Re: cable bills in collection by Anonymous on March 23, 2015 @21:49	[ Reply ]

If you find someone with a bankruptcy in their background and more bad debt acquired since, RUN the other way! Bankrupty usually follows accumulation of bad debt, so you can certainly see it coming.