rent candidate has chapter 7 bankruptcy discharged 5 ys ago

rent candidate has chapter 7 bankruptcy discharged 5 ys ago

Investor · Pleasanton, CA · Member since 2017 · 16 posts · 1 vote

I have a guy (with 4 yr son) whose background checks indicates 700+ credit score, stable federal job (3X salary vs rent) for last 8 years, good references from past 2 landlords BUT had chapter 7 bankruptcy that was discharged in 2013. 

He wants to rent with a lady (she has 15 yr daughter) with 700+ credit score, 2x salary vs rent job, BUT she has "judgement from court" for child support services ( She needs to pay  for child support). Don't know the amount yet. 

What are your thoughts renting SFR to them?

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Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
8y

700 credit score means they care about paying bills. Bankruptcies happen, and the fact that he was able to build to 700 in 5 years is a testament to his bill paying diligence. Child support also happens. That doesn't mean she was negligent in paying bills. A court order must be filed and a judgment granted in order to secure child support. Even if she was paying $1,000 a week to the father, without that judgment there is no RECORD of payment. She the judgment was actually to her advantage to prevent nasty surprises in the future.

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  • Investor · Chicago, IL · Member since 2016 · 1k+ posts · 930 votes
    8y

    700 credit score means they care about paying bills. Bankruptcies happen, and the fact that he was able to build to 700 in 5 years is a testament to his bill paying diligence. Child support also happens. That doesn't mean she was negligent in paying bills. A court order must be filed and a judgment granted in order to secure child support. Even if she was paying $1,000 a week to the father, without that judgment there is no RECORD of payment. She the judgment was actually to her advantage to prevent nasty surprises in the future.

  • Roanoke, VA · Member since 2014 · 404 posts · 203 votes
    8y
    I second Ray Harrell ‘s thoughts. We don’t rent to anyone who has had a bankruptcy within the past year, but outside of that timeframe we will rent to them as long as they meet the minimum credit score.
  • All Over, USA · Member since 2017 · 689 posts · 756 votes
    8y
    Originally posted by @Anish Arora:

    I have a guy (with 4 yr son) whose background checks indicates 700+ credit score, stable federal job (3X salary vs rent) for last 8 years, good references from past 2 landlords BUT had chapter 7 bankruptcy that was discharged in 2013. 

    He wants to rent with a lady (she has 15 yr daughter) with 700+ credit score, 2x salary vs rent job, BUT she has "judgement from court" for child support services ( She needs to pay  for child support). Don't know the amount yet. 

    What are your thoughts renting SFR to them?

    Depends. How desparate (vacancy time?) are we?

  • Rental Property Investor · Tulsa, OK · Member since 2016 · 50 posts · 38 votes
    8y

    What did you decide to do?  I'm in a similar situation with a  potential renter.  She has a 700+ credit score with a bankruptcy from 5 years ago and good income.  I'm considering asking her to up the security deposit 1.5 times what I normally ask.  I'm not desperate to fill the vacancy yet; however, I'm willing to work with someone who on paper is showing she has turned things around.

  • Investor · Pleasanton, CA · Member since 2017 · 16 posts · 1 vote
    8y

    I did not offer them house as I found some-one else with credit between 650-700 but no bankruptcy

  • Member since 2018 · 3 posts · 2 votes
    8y

    I agree with @Ray Harrell. Bankruptcy can and does happen. I have seen everything from medical bills, loss of a spouse, divorce, loss of jobs to identity theft cause someone to have to file. Bankruptcy does not necessarily reflect the person's track record or ability to pay. Many times it's a result of life's unavoidable circumstances. 

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