Tenant - Low Credit Primarily Due to Car Accident Litigation

[Allison Park]

I have a brand new 3 bd 2.5 ba Townhouse.  I have had it listed for just over a week.  I set the Credit Score as 650+ negotiable in Zillow and I had two immediate applications with very bad scores.  One was in the 400s and had a history of late payments and delinquencies and I rejected it.  The other is in the low 500s but stated that this is due to a car accident totaling her car and is in litigation, so she is not paying on the loan.  There is also another account with a small amount of $300 with some late payments.  

Question 1:  Should I just lower the credit score a bit (like 630) to allow for some flexibility and avoid getting applicants with staggeringly low scores?

Question 2:  Should I even consider the low 500s score?  The contingencies would be asking for a co-signer and checking landlord references.  She does not have any evictions or bankruptcies.  

Question 3:  I have 2 other similar Townhomes that will be ready late October.  Should I go ahead and list them now even though I would not be able to sign a lease until I close on them?

Other thing to note: I am ok with waiting a couple months to fill these vacancies, but by then it will be mid-winter (not that big a deal in Raleigh) but I understand there are probably fewer applicants during that time.

[John Clark]

Quote from @Allison Park:

I have a brand new 3 bd 2.5 ba Townhouse.  I have had it listed for just over a week.  I set the Credit Score as 650+ negotiable in Zillow and I had two immediate applications with very bad scores.  One was in the 400s and had a history of late payments and delinquencies and I rejected it.  The other is in the low 500s but stated that this is due to a car accident totaling her car and is in litigation, so she is not paying on the loan.  There is also another account with a small amount of $300 with some late payments.  

Question 1:  Should I just lower the credit score a bit (like 630) to allow for some flexibility and avoid getting applicants with staggeringly low scores?

Question 2:  Should I even consider the low 500s score?  The contingencies would be asking for a co-signer and checking landlord references.  She does not have any evictions or bankruptcies.  

Question 3:  I have 2 other similar Townhomes that will be ready late October.  Should I go ahead and list them now even though I would not be able to sign a lease until I close on them?

Other thing to note: I am ok with waiting a couple months to fill these vacancies, but by then it will be mid-winter (not that big a deal in Raleigh) but I understand there are probably fewer applicants during that time.

She got into an accident, so she stops paying her loan? Unless the litigation involves a manufacturing defect in the car, pass. Not the car manufacturer/dealer fault. She’s got wonky logic. Don’t get caught up in it.