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most debt is student loans FICO 612 - Landlord Forum thread 349523

most debt is student loans FICO 612 by Anonymous (PA) on December 3, 2016 @14:37

                              
Applicant has 12 tradelines and 9 are in serious delinquency. Most are student loans. Applicant did graduate and makes $1900/ month (3x rent). Wife has FICO of 705 but is still in college. Any suggestions? I usually only accept 650 minimum but applicants are scarce right now.
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Re: most debt is student loans FICO 612 by J (FL) on December 3, 2016 @17:16 [ Reply ]
By "serious deliquency" I assume you mean student loans that are 120+ days late, or actually defaulted.

I wouldn't take this person because those loans will be an albatross around their neck...their wages can even be garnished for this. Who are they going to pay, you or the loans? And $1900/month is not a ton of income.

Also more than half the tradelines are negative...that's not a good sign in general regardless of score.

Pass.
Re: the student loans will put a lein on his accounts by Kathleen on December 3, 2016 @17:16 [ Reply ]
So if he has several, once they find him, they'll nick him.
So his 1900/may shrink, depending on who all us after him.

Serious delinquency doesn't mean slow pay;it means NO PAY.
IMO, he'd throw you under a bus, get the student loan garnished right out of payroll and then rob peter to pay paul with his utilities.

A bad tenant is far worse than no tenant.
Re: most debt is student loans FICO 612 by Garry on December 3, 2016 @17:18 [ Reply ]
If the rest of their application passes your muster, put them on a 4-5 month lease to take you up thru next spring. Ask for a little bit more in rent, say $25, and get a 11/2- 2 times the rent for a deposit if your state allows it. Accept only cash for the deposit and rents. Make the rent due on the first, and charge a late fee starting on the 3rd or 4th of each month. In other words, tell them to "put their money where their mouth is".
Can you afford to take a chance on bad credit? by Kathleen on December 3, 2016 @19:36 [ Reply ]
Because it's not just the rent you'll lose, it's your expenses, cost of eviction, cleaning up and flipping the house to re rent.

You don't know these people so are you'll be letting them borrow your $100,000+ investment to do with as they please for however long they please? This could take up to a year, what woth giving them a chance, posting, filing, having them served, having them give an answer to the UD and going to court?

I say this because I have 26 rentals and 4 evictions in 30 years. Who takes up most of my time? The one who just barely had a credit score and income; I let them in and I would get more sleep with Satan himself.

Late every month, or knocking on my door at 11pm to give me the rent so they won't get a late charge. 930 at night phone calls "It's so hot. And my cooler doesn't work" (it wasn't plugged in).

Because you can wait for a better tenant or just get a thousand dollars in fives and throw them out your car window every month
Re: Can you afford to take a chance on bad credit? by Kathleen on December 3, 2016 @19:37 [ Reply ]
Because it's not just the rent you'll lose, it's your expenses, cost of eviction, cleaning up and flipping the house to re rent.

You don't know these people so are you'll be letting them borrow your $100,000+ investment to do with as they please for however long they please? This could take up to a year, what woth giving them a chance, posting, filing, having them served, having them give an answer to the UD and going to court?

I say this because I have 26 rentals and 4 evictions in 30 years. Who takes up most of my time? The one who just barely had a credit score and income; I let them in and I would get more sleep with Satan himself.

Late every month, or knocking on my door at 11pm to give me the rent so they won't get a late charge. 930 at night phone calls "It's so hot. And my cooler doesn't work" (it wasn't plugged in).

Because you can wait for a better tenant or just get a thousand dollars in fives and throw them out your car window every month

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