verify retired folks income??

Question

Hi everyone!

quick question about verifying a retired persons income.  He lists $5700 and states "retired".  How do I verify that?  I assume some is SS.  He's retired after 30 years at a paper mill so some may be from that as well.  Maybe I need more information from him but will the SS administration give that info out?  I am running a background/credit check but haven't gotten a response yet.

Any info would be helpful. We are new at this as this is only our second house.

Account Closed · Answer

He can supply you with a benefit letter from the SSA website and show you his deposits to his bank account on a bank statement.

I'm guessing he also has a pension, and he should be able to give you proof of the pension amount, too.  I'd imagine there would also be deposits to his bank account and/or check stubs or some other document he could provide that shows he's getting the pension and how much it is, etc.

Just ask him for proof of income, and see what he provides.  You can always ask for more.  $5700 sounds like a lot to be from just SSA and a pension.  He'll have to be more specific about the sources and amounts received from each, and provide proof.

If he is evasive, just deny him.  If your application had lines for him to fill out regarding type of income and how much from each source, and he ignored that and just wrote "retired" and $5700 - you could just deny him for not filling out the application completely.

When you have to pull teeth to get info from applicants, you're just better off denying them, because dealing with them on anything after they move in will be the same way - they won't be cooperative or respectful.  At least that was my experience, that I learned the hard way.

Andy D. · Answer

@Chris M. I'm with you on that one! Although, technically, she's not really retired. ; -) Anyway: why do people (well, banks, really) focus so much on income from jobs?? I am lucky enough to have a very good one but the fact that I've been with the company for many years - what exactly does that prove with respect to me being  able to keep that job in the future?? I could call my boss an, uhm, "very unpleasant person" and get fired and then what? I tell you "then what": it boils down to the fact whether I have money or not. Not whether I make money. Should the money I have also make money (e.g. dividends) then even better but the bottom line is, as one lovely person once asked me: "Do you have money or do you have to work?"

That really says it all. ;-)

So coming back to the retired folks: guess what, they have worked all their lives (let's assume that, for the sake of it) and have accumulated more or less wealth that now, coming from various sources most likely, generates a flow of income. What else do you want? Because, really, the goal of an investor-landlord is to get the rent (and for you as a lender to get your interest and ultimtely money back). I couldn't care less whether this is coming from the tenant getting prizes on dog shows for their poodle or from hard work they does himself. As long as that poodle-prize-winning potential tenant shows me their bank statements that show some reasonable money in them I'd probably be happy (with no red flags otherwise, of course). Could the tenant-to-be spend all that money tomorrow on a new super-poodle and have nothing left for rent? Sure. Just like an employee can get fired. Actually, you know what, I'd prefer that poodle-prize-winning tenant-to-be as he (she?) would be totally in love with the poodle and would do everything to keep it! If I get a judgment against them I could possibly get possession of that valuable poodle and auction it off at a poodle-lover auction! The person would never allow that and rather pay up. Ha! (and no, I'm not being entirely serious here ;- ) ).

@Robin Cox We are in the business of making money. Don't be stupid by on-boarding everyone you come across but also don't be stupid by excluding perfectly fine opportunities (= good tenants) simply because they don't have a W-2 (there was another thread about a trust kiddy; I'd jump on that immediately if it were me in the context of financial security - but the kid of course needs to otherwise be a viable tenant, which, uhm, sometimes can be the main issue ;-) ).

So with retired folks we as landlords actually are in an even better position when looking at "job security": you can't get fired from your retiree "job"! SS will pay as long as you live and so will, typically, pension plans. So just like @Sue Kelly said, have him provide you with proof of income/wealth. Anything he will present, that will corroborate the above, should satisfy you, I'm pretty sure about that. Good luck!

Chris Mason · Answer

@Robin Cox

Don't discount the retired folks!

I've got an absolutely stunning young lady in escrow right now for an investment property that nets >$16k/month between SSA, SSA disability because she is in a wheelchair, pension, and life insurance payouts.

I picked her (& her 814 FICO score & the fact that she is overall an awesome client) up because some other lender (who is a complete idiot) said that "you need a job to get a mortgage"...

After we close this one out, we're going to be dropping the interest rate on the house she provides for her elderly parents by 0.75% or so because some idiot did it as an investment property for some reason -- which was not appropriate.

So, yeah, don't discount the retired folks!

Account Closed · Answer

Weird things happening on BP LOL - duplicate post.

Robin Cox · Answer

Ok.  So I'll ask for several months bank statements with the deposit amounts evident.

I agree you can't get fired from retirement!  And he said to my husband, "Buddy, I'll stay here till I die"...  Well that's comforting. LOL.

@Andy D.  LOL. No poodles but he does have a Yorkie!

verify retired folks income??

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