Chapter 13 in 2012, credit score 780, rent or pass

6 Replies

A family of 4, Moving from out of town. they filed a chapter 13 in 2012 to keep their house in socal. due to recent job they had to move, will have a contract job for a year at local college. current credit score is 790. my rent is on par with zillow estimate.. 

income wise, they made the 3x gross multiplier. (I'd say 5x if both combined).

Both have higher education, previous landlords are the college housings...

rent or pass? I feel that they won't have problem paying the rent, but with utilities and all, plus food, etc.. I'm not sure.

If I'm in their seat, I would go for lower rent, but everyone is different..
Should I care about previous ch.13?

Originally posted by @Yos W. :

A family of 4, Moving from out of town. they filed a chapter 13 in 2012 to keep their house in socal. due to recent job they had to move, will have a contract job for a year at local college. current credit score is 790. my rent is on par with zillow estimate.. 

income wise, they made the 3x gross multiplier. (I'd say 5x if both combined).

Both have higher education, previous landlords are the college housings...

rent or pass? I feel that they won't have problem paying the rent, but with utilities and all, plus food, etc.. I'm not sure.

If I'm in their seat, I would go for lower rent, but everyone is different..
Should I care about previous ch.13?

A lot of people have foreclosures, and bankruptcies after the market crash. The important question is do they have any history of evictions? Also do they meet your income requirements?

If put up against another prospective tenant without the bankruptcy, they would lose.

It sounds like you need an applicant scoring system. We use this EVERY. Day.

It's great, you just fill out the fields and it will give you a score. Anything above or below a certain score you can either approve or deny. Or we will ask for a double deposit if they fall into a certain category.

Here is some of the criteria we look at, hope it helps!

We rent to a lot of people who have foreclosures, and we look for them to make 2.5x rent. Where they make 3x (5x combined) I don't anticipate that ability to pay rent would be an issue.

Good luck!

Why did they file Chapter 13?

Anthony, thanks for the input! :) No eviction, and seemed that they are paying their dues/obligations from the BK. In all fairness, their house in Socal worth double the house we're renting.


Tyson, I'll check that out.. it's obvious that I'm new to the landording.. 

Alan, they file ch 13 due to the enrollment to HAMP program, they are afraid of losing their house. There's a class action against the lender and they won the settlement, but the BK is there.. tenant screen came back as declined, since I think BK within the past 10 years is an auto decline.
They are honest with me from the start, which is a plus but I'm having a hardtime explaining to my spouse about this. She simply don't understand why BK exist in the first place. 

If you decline them, try to sell them on the joys of living in New Hampshire, and I'll happily take them.

One thing to bear in mind about bankruptcy is that you cannot immediately do it again.  In that sense, a recent bankruptcy is actually better than an older one.

Just mentioning that because it is counter-intuitive to many landlords.

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