Posted by Redline on March 06, 2000 at 18:15:40:
Sounds good dude!
RL
THEY WANT OUT, THEY WANT OUT but they want a credit report! - Posted by Doe
Posted by Doe on March 03, 2000 at 12:28:18:
My questions are:
Suppose you have a seller who wants to lease option their home. BUT they want to see your credit report b/f they OK the deal.
Second:
Suppose I am looking for a tenant/buyer for a sandwich lease option deal. Should I ask them for a credit report when I am screening potential “tenants/buyers”
Suppose they don’t want to give up their credit report.
I’d appreciate any advice in this certain situation…
thanx,
Doe
Check out YOUR tenants… - Posted by Carmen_FL
Posted by Carmen_FL on March 03, 2000 at 16:09:52:
I would always require a credit report when I will be the “landlord/seller” (while, of course, doing my best not to share this information when I am the tenant/buyer, for the reasons stated below). Otherwise, you may end up with a whole bunch of deadbeats. At the VERY least, I would be interested to know:
- Have they ever been evicted? Have they ever had a foreclosure? These two things are good indications of future tenancy problems - especially if they have more than one eviction showing!
- On an L/O, will they be able to qualify for a mortgage in a reasonable amount of time? This is especially important on a sandwich L/O - otherwise, your big payday may never come. I may not concentrate on the score as much - but I would pay attention to the REASON their credit is low. If it’s just a few late pays, or a medical collection or two, or just very little credit - OK. But if their credit shows they are truly deadbeats in many areas (various collections, judgments, child support, reposessions, etc.), then you would be smart to stay away from them, period. No matter how much money down they have - you’re on the hook on the sandwich lease option for the monthly payments, remember.
If they don’t want to share their credit, as a tenant/buyer, there’s usually a very good reason. It’s a normal part of every rental application I’ve ever filled out, so they know the drill.
Alternatively… - Posted by ScottE
Posted by ScottE on March 03, 2000 at 13:03:03:
You may consider doing your L/O through a business entity, which could add credibility and possible avoid the question even being asked.
In the interim, just tell them you do not release your credit report at all. “Mr. and Mrs. Seller, I understand your apprehension, but that’s something I will not do, however, I can offer you a letter from
my (banker, lawyer, and CPA) if neceesary, stating that I am a credible client”. This should quell their apprehension.
Good luck
Scott
Re: THEY WANT OUT, THEY WANT OUT but they want a credit report! - Posted by Steve-Atl
Posted by Steve-Atl on March 03, 2000 at 12:39:40:
We ALWAYS pull a credit report when selling on a lease option as part of the normal application process.
I have never had a seller ask for one when I was buying though. I suppose it depends on the deal. If the deal is good enough, I might consider getting a copy of my own report and let them review it in my presence, but I would not let them make or keep a copy.
Why Not? - Posted by Frank
Posted by Frank on March 03, 2000 at 13:07:42:
I don’t understand - why would you not let the seller make or keep a copy of your credit report? What would be the harm? To me it seems if it would make the deal go through - why not. You can get a credit report on anybody - if they wanted they could run one on you as if you were just a tenant. I’ve done it on the internet before.
You may be able to get it, just not LEGALLY without someone’s written consent. - Posted by WilliamGA
Posted by WilliamGA on March 03, 2000 at 14:45:11:
I, too, have let a seller or two see my credit report. But that was just to assure them that I was not a deadbeat and that all of my obligations are paid in a timely manner. This seems to put most of the fears that some of them have to rest.But no way will I GIVE them a copy of it. There is way too much personal information on it and frankly, who and how many accounts and lines of credit I have is not any of their business.
It is one thing to prove that all your accounts are in good standing. That should be all they need. If viewing my report and letters of reccomendation from previous sellers doesn’t overcome their anxiety, they are not motivated enough. NEXT!
WilliamGA
Re: You don’t need written consent in all cases - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 03, 2000 at 15:25:59:
Just to clarify, written consent is not legally required to pull someones credit, if you have a legitimate business purpose for doing so, such as renting a house to them, or extending credit via owner financing.
Stacy
Re: You don’t need written consent in all cases - Posted by Redline
Posted by Redline on March 03, 2000 at 17:43:43:
Stacy, old pal!!
You better double check this because I don’t believe you are correct. You need written consent to pull someone’s credit report UNLESS you are a creditor. (atleast that’s what I’ve been told).
RL
Re: You don’t need written consent in all cases - Posted by WilliamGA
Posted by WilliamGA on March 03, 2000 at 16:08:52:
While it may not be required by law in the cases you list, I would certainly cover my a** by getting that consent in writing.
WilliamGA
Re: You Dare to Question ME? (smile) - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 03, 2000 at 19:43:39:
Hi Redline-
Believe it or not, I think I’m correct…yes a miracle has happened (smile). Go to the following link (Federal Trade Commission site, The Fair Credit Reporting Act page) and read for yourself. I think section 604 is of particular interest. Basically, if you are considering extending credit to a consumer (owner finance), or checking him out for a rental, you are OK.
But, there’s a great non-legalese interpretation at the following URL:
http://www.creddata.com/who.htm
Stacy (not a lawyer)
By the way…I hope you’re leaving the waitresses alone these days.
Re: Yes, and some credit agencies require it anyway. nt - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 03, 2000 at 16:45:47:
.
Re: You Dare to Question ME? (smile) - Posted by Redline
Posted by Redline on March 03, 2000 at 21:23:13:
Weeeeellll, Mr. KNOW-IT-ALL! 
Well actually the wording on that site is misleading at best:
“As a rule, if you have a legitimate business need to pull a credit report on someone, you can do so! In other words, if you are loaning money to someone, employing someone, renting an apartment to someone, entering into some business transaction with someone, etc., you are risking loss of capital, or worse. In these, and other, cases you should be able to order a credit report on the individual(s) you are about to do business with.”
Fine. BUT then it says:
“However, keep in mind that, unless your need involves collection on a credit card debt, you must have an individual’s permission to order their credit report. The operative phrase is that consumer credit reports should be initiated by the individual who is the subject of the credit report.”
This would mean to me “written consent” because how else would you prove you had permission?
RL
PS - Waitresses are excellent, especially when they’re carring 26oz steaks.
Re: You Dare to Question ME? (smile) - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 03, 2000 at 22:06:26:
Redline, you are relentless!
I am speaking of the waitresses, of course.
Seriously, if my name was John Behle, would you believe me? Try this post from December:
http://www.creonline.com/wwwboard/messages/oct98-dec98/969.html
But, let’s just put it all to rest and agree that nothing in the law says you have to have WRITTEN approval, but it’s a good idea to get it anyway, if you can.
I’m convinced a filled-out application to rent, or a signed sales contract with owner financing terms would prove (if it ever made it as far as court) that you had a perfectly acceptable reason to insure your own interests. That’s the whole reason for credit agencies in the first place. They are there for this purpose (not just for credit card companies).
Compromise, big guy?
Stacy
Re: You Dare to Question ME? (smile) - Posted by Redline
Posted by Redline on March 03, 2000 at 22:16:37:
OK - I can live with that, but I personally I would always get the person to sign off on a letter stating they are OK’ing the pulling of their credit report.
Good to be safe … BIG GUY!!
RL
Re: Dam…those Texas steaks we good… - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 03, 2000 at 22:32:48:
Hope we get to party again sometime! Maybe at next year’s convention in Phoenix (he he).
Stacy