Why you should add a Pacer account to your tenant screening
Pacer: Public access to court electronic records. This account allows you practically real time access to federal court and bankruptcy cases, up to 300 pages of access per quarter for free starting 1/1/20. As of now you have 150 pages of free document access per quarter. 10 cents per page/search after free usage amount is utilized.
We are always looking for better and more effective screening techniques. We have experienced a unique scenario where we will now be using a Pacer account in addition to our existing tenant screening moving forward, and why you might want to as well. Here is the story:
Back on 3/20/2019 we screened tenants via TU smartmove. Tenants credit scores, a family, were low to mid 600's due to some higher utilization with moderate debt, but showed no bankruptcy in the public records section or debt levels that their income per our verification couldn't afford. Excellent references. No evictions. Lovely family, we approved them.
They have not been forthcoming with the rent and informed us that they will be filing chapter 7 BK. They have found and been approved for another more affordable property elsewhere, provided us a signed letter attesting to this from new landlord with specific address and move in date, and will be vacating on a specific date this month. Tenants have taken excellent care of property and have appeared cooperative so far. Relationship remains non-combative and professional.
Tenants SD was applied to all past due rent as to limit balance if we were to get nominated into the BK, which according to tenant was imminent. Client didn't want to take the risk so we applied SD, even if it shortly delayed ability to evict. Double edged sword. Tenant several days later stated BK had been filed and eviction was unnecessary as they will be out within 10 days. Long story short, after some research, we created a pacer account to search any current BK activity.
Not only have they not filed, they reopened an existing BK back on 2/1/19, a full 50 days before we screened them where it never showed up... This is a HUGE lag time between when its filed with the court system, and when it's actually updated and posted to the CRA's. Totally unacceptable. I called TU Smartmove to ask how long it takes for a BK to go from the filing date to their screening records and no one could give me an answer. Not confidence inspiring. Their debts were discharged on 3/31/19, one day before they moved in... Had we had the Pacer account and conducted a free party search via SSN, we would have been alerted to the open BK and declined them. We also know now that tenant is lying about just filing a BK, and simply dangling it to delay and or avoid eviction until moving into their next place.
Learning everyday. Hopefully this situation can help you avoid this situation in the future. Rising tides raise all ships.
This is an ongoing situation.