Policy On Applicants With Unsatisified Judgements

9 Replies

Do you treat unsatisfied judgements like most landlords treat evictions (none, ever), or are there conditions, ie, how long ago, amount, etc... where you'd accept an applicant with one... or more

How about mortgage foreclosures?

Thank you,


I think it depends on how weak/strong your market is and what the judgement is for, and when it's from. Same way you don't necessarily mind bankruptcy as a result of healthcare/medical expenses.

Some of my best tenants have been through a foreclosure or short sale.

Like @Rob K.  mentioned, I have also had great experiences with people who've had a foreclosure. They take really good care of the property (maybe because they know what it's like to own a home) and they tend to stay a while because they can't (or don't want to) buy again right away. 

Foreclosures are not an issue for me and most judgments would not stop me either. Now a judgment from another landlord is a dead stop. I will encourage them to make payment arrangements with that past landlord before I will consider them and I have succeeded in getting 2 former landlords paid. 

So owing a landlord a landlord $500 is a dead stop, but someone else 2k is ok?

Makes no sense.

What about the recency of the judgement?

Arnie the judgment can be from a medical collection company, a scorned contractor, all kinds of things.

If people do not show up or were given proper notice then a judgment is issued by default.

The tenants can file a "motion to vacate" to have the judgment vacated. In some states If the case is more than 30 days old it is closed and the tenant has to pay for a new case to be opened with the old file attached.

If the tenant wants to add an "agreed to vacate" judgment signed by the plaintiff and notarized then it can be added to the file and they dispute with the credit bureau and it comes off as they see it was vacated. Vacated means they consider it never to have existed or be valid. Satisfied on the credit means just that it was paid but I valid etc.

I would be more concerned with a habit of not paying the landlord. If the tenant has a history of paying rent and stiffing others but they keep the place clean then who cares??

No legal advice.    

I'm sorry, I don't see the logic.

It ok to stiff somebody, company, clinic, car repair, what have you...

Just don't stiff a landlord.


Originally posted by @Arnie Guida:

I'm sorry, I don't see the logic.

It ok to stiff somebody, company, clinic, car repair, what have you...

Just don't stiff a landlord.


I don't think people are saying it's "ok" to stiff anyone other than a landlord. It just seems that a lot of people who rent have credit issues (why they rent instead of owning) and it's better from a landlord's perspective to have someone who has a good history of paying rent. I actually have good luck renting to people who have bad credit, but pay their rent. They might owe student loans, medical bills, past repo, etc, but pay their rent first. 

Also, if their credit is really good and they don't owe anyone anything, they will probably buy a house of their own in the near future and you will have a vacancy.

A foreclosure could have been caused by the economic downturn, in combination with sub-prime lending ... there was a lot that went on that a lot of people were affected by.  Not to say that people aren't somewhat responsible but there are some factors out of people's control.

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