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Co-Sign (by Colleen [FL]) Apr 6, 2024 8:33 PM
       (by MC [PA]) Apr 6, 2024 8:38 PM
       (by 6x6 [TN]) Apr 6, 2024 8:54 PM
       (by Colleen [FL]) Apr 6, 2024 9:11 PM
       (by Ken [NY]) Apr 6, 2024 10:05 PM
       (by DJ [VA]) Apr 6, 2024 10:12 PM
       (by FloridaNative [FL]) Apr 7, 2024 8:21 AM
       (by Phil [OR]) Apr 7, 2024 8:59 AM
       (by Phil [OR]) Apr 7, 2024 9:06 AM
       (by Vee [OH]) Apr 7, 2024 9:28 AM
       (by Tim [CA]) Apr 7, 2024 12:22 PM
       (by Colleen [FL]) Apr 7, 2024 3:35 PM
       (by Colleen [FL]) Apr 7, 2024 3:37 PM
       (by Colleen [FL]) Apr 7, 2024 3:51 PM
       (by WMH [NC]) Apr 7, 2024 4:00 PM
       (by Ken [NY]) Apr 7, 2024 4:51 PM
       (by Ray-N-Pa [PA]) Apr 9, 2024 9:24 PM

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Co-Sign (by Colleen [FL]) Apr 6, 2024 8:33 PM

Hello all,

I haven't had a co-sign before. I am open to consider this particular case. The prospective tenant is at beginning stage of divorce and part their living ways. He is currently own a home (500k?) that is going/on market. He advised that he is a salaried employee with a company contract with Federal government, and he has credit around 700. Therefore, he is not able to pay 2 house payments during the interim. His retired mother is co-sign with him who has 800's credit score with SS, pension, and personal investment.

Do I need her SS no? I advised her that I can take a copy of her credit score; this maybe a mistake and I don't want to go back. She will provide me documents to support her finance capable. I plan that she is on the rental contract also even though not occupy. I advised them I would have a language once the house is sold, then they have an option that I do another contract without her. However, I just think she may need to stay on as he will also support wife and a little son, and may have a legal payment(s). Thoughts?

Co-Sign (by MC [PA]) Apr 6, 2024 8:38 PM

Do your own screening. Don't take a copy from anyone.think long and hard about it.

Co-Sign (by 6x6 [TN]) Apr 6, 2024 8:54 PM

" Therefore, he is not able to pay 2 house payments during the interim."

Does this mean that he will not pay rent?

I would be under the assumption that the mother will be living there as well.

Co-Sign (by Colleen [FL]) Apr 6, 2024 9:11 PM

What I was informed is that the mother will not be living there. She is residing in another state.

For the mother who is an applicant, being on the contract, and paying the rent, she has an option to live there which does not matter if she passes the application review. Once they are approved, Whether she wants to live there or not is up to her/them.

Co-Sign (by Ken [NY]) Apr 6, 2024 10:05 PM

I wouldnt take him.I dont do co signors,if anything i would put her as a tenant,otherwise as a cosignor i feel it is too easy for a judge to remove her name when you sue.If i was to accept her she would need to be easy to go after her when you dont get paid,she is out of state which makes it difficult.He has already told you he cant make 2 payments and i would be willing to bet the court is going to make him pay the mortgage while the wife lives there.Way more drama than you need to deal with.Go find someone qualified --74.77.xx.xx

Co-Sign (by DJ [VA]) Apr 6, 2024 10:12 PM

Oh, my. Where to begin?

If you search this forum, you should be able to find any discussions concerning screening & cosigners.

I'm not sure, but I think I understand you to say that so far, all the information you have on these folks is what they have told you.

I do hope that you have pre-determined, written criteria that an applicant must meet, in order to qualify to rent this property.

That would typically include things like income sufficient for ALL expenses, good past housing/rental (or mortgage payment)history, clear criminal background - and more.

To examine these things you need to have proof of income (paystubs/bank statements), proof of savings (bank statements, Social security number, photo ID, FULL name and DOB, etc, etc.

Personally, I do not take cosigners. Each applicant must qualify on their own merits.

But, if you want to consider it, you would need to confirm that he has sufficient income to cover ALL his expenses - for his current family & home.

If he does not (apparently)and you want to put someone else on the hook for his bills, then you need to confirm that the cosigner has sufficient income to cover ALL the costs of their own life & his.

Also, if the cosigner does not own property & live locally, you will have a VEY difficult time collecting any debt from her, if/when you need to - so she's really not a good help for you.

In summary, it sounds like you have an unqualified applicant that you are trying hard to "make him" qualify. If you continue that way, you WILL regret it.

Don't let his problems become your problems.

Co-Sign (by FloridaNative [FL]) Apr 7, 2024 8:21 AM

I wouldn't consider this applicant. We don't take co-signers either but in this specific case you described, the co-signer doesn't even have enough income to pay your rent in addition to her own iiving expenses, does she? It defeats the entire purpose of having a co-signer.

Also I never accept copies of credit reports/scores from tenants. I will use zillow reports as a pre-screen only and then if the people pass the pre-screen, I pull all their reports from a third party vendor. I have had an applicant come back with felony's that the zillow background check failed to pick up. So accepting a copy of an applicant's credit and background from the applicant is highly risky.Please be very cautious and find a better tenant.

Co-Sign (by Phil [OR]) Apr 7, 2024 8:59 AM

We do co-sign all the time. Rent to a lot of students/first time renters. I would accept this one in a heart beat. With a 800 credit score, mother most likely is able to cover the rent with no problem.

The one thing you will most likely have happen, the tenant will not be a long term if he is moving into a much smaller place. Most of my tenants there were newly divorced end up moving 6-8 months latter.

Co-Sign (by Phil [OR]) Apr 7, 2024 9:06 AM

Yes, you need her SSN, address and signed release to check credit etc for as long as she is responsible (until he is moved out and all debt cleared)

We have never had a big problem when we had a good qualified co-signer. One time 40 years ago, student did not pay on time. Phone call to the parent co-signer, and the check was there within days(mailing time) and then parent always mailed the check directly from that point forward.

Co-Sign (by Vee [OH]) Apr 7, 2024 9:28 AM

The only time using a co-signer helps is when they are real property owners in the same court jurisdiction as your place, otherwise you will be stuck chasing this person's assets all over creation until the lien can be held - my former partner calls this chasing a small ball in high grass, she once owned a small company selling used used golf balls, you will need to hire an atty to get a lien on the co-signer property where it is if there are no existing liens - so you can force a sale to satisfy your portion of the absent reent/damage, a lot of expense to collect rent for however long it takes to actually close a court case out of the area. The short answer is take life insurance on the co-signer and wait for the payoff from natural attrition, it is a bad idea, marriage and divorce goes faster - I would like a couple slices of cake for saving you the trouble of a co-signer, where there is no cake.

Co-Sign (by Tim [CA]) Apr 7, 2024 12:22 PM

no thanks....I'd pass. I've done co-signers in the past with success, but there are too many red flags here. Divorce means this will not be a long-term tenant. $500k house is irrelevant. Mommy not living nearby is a complete deal breaker. Keep looking for a better tenant. --73.2.xx.xx

Co-Sign (by Colleen [FL]) Apr 7, 2024 3:35 PM

Thank you all. My post was prior to actual receiving the applications today, but we (3) did have a conference call on what I am expecting/looking/receiving for qualification. Iíll seek to have the co-signer DL and/or SS.

The parents tax income filing (supplied) is 240k with 2k house payment. They are owners of an established health company and financially well standing (millions).

Thank you, Phil, for sharing your experiences. I don't expect and would not go after in court. I understands it is questionable if he is a long term (multiple years), which TBD, but I would not depend on it. I expect that the rental will be paid during the occupancy. I am thinking require a last month payment in addition to the deposit.

He has a government defense clearance, and a good income. I would assume he and his parents donít want negative record.

QUESTION: Do I have a co-signer along with the tenant on the same contract? Or is it a separate form? And any typical formal language or just explanation/description of a co-signerís responsibility? Thank you in advance.

Co-Sign (by Colleen [FL]) Apr 7, 2024 3:37 PM

I'll also look up past "Co-signer" posts.

Co-Sign (by Colleen [FL]) Apr 7, 2024 3:51 PM

Thank you for pointing out that the mother who will be paying should be a renter (not a co-signer).

Co-Sign (by WMH [NC]) Apr 7, 2024 4:00 PM

Exactly how will you collect from them if he decides not to or can't pay? What's your plan? If you don't have one, what's the purpose of the co-signer?

For us, no co-signers. Especially if they live in another county, let alone another state! Too much time effort and money will go into pursuing them, and life's too short for that stress.

Co-Sign (by Ken [NY]) Apr 7, 2024 4:51 PM

What is the purpose of a cosignor if you wont go after them in court? i think you are too easily impressed at this point --74.77.xx.xx

Co-Sign (by Ray-N-Pa [PA]) Apr 9, 2024 9:24 PM

Does this co-signer own real estate in the state where you are located at? If they don't have something that I can lien, they don't qualify.

Someone going through divorce means the credit score is probably going to be taking a hit.

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