Tenant Choice
This is a hypothetical question based on a decision I will likely need to make. If you had to chose and approve one of these tenants, which one would it be?
Assume both renters have the same amount of income, assets, liabilities, and same credit score. The renters incomes cannot be garnished,
Renter 1. 100k mortgage with 1k monthly payment includes taxes and insurance, Stopped paying mortgage for a year and is in forclosure. 100k credit cards pays 1k per month on time. Pays all non housing bills on time
Renter 2. 100k mortgage with 1k monthly pmt, which he pays in full on time, 100k credit cards with 1k monthly payment, stopped paying credit cards several months ago. Assume credit card balance is growing only at same rate as mortgage in default on renter 1. Pays mortgage and all other non credit card bills.
In sum, assuming all else is equal. If you had to end to one of them would you rather rent to someone who defaults on their mortgage with forclosure or defaults on their credit cards. Thx.