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June 16, 2012 at 4:15 PM in reply to: My next door neighbor was a cop, still under 60, been retired for more than 5 yrs #745915
garysears
ParticipantI investigated hard money lending somewhat seriously for myself in early 2010. The quote you need to remember is hard money lenders “loan to own”.
That is, hard money lenders expect either to get paid back quickly (thus the high points charged) or they expect to make money by foreclosing and taking your down payment (thus the high down payment). As stated above the risk is mitigated almost entirely by the % down payment required which will be the equity the hard money owner is comfortable having in the property if you can’t make the payments.
After my escrow fell through 6 months ago I’ve been content to wait another 1-2 years to see if the low end prices come back from the tax credit bounce. It is starting to look OK this fall but the spring bounce is right around the corner 🙁
ParticipantI investigated hard money lending somewhat seriously for myself in early 2010. The quote you need to remember is hard money lenders “loan to own”.
That is, hard money lenders expect either to get paid back quickly (thus the high points charged) or they expect to make money by foreclosing and taking your down payment (thus the high down payment). As stated above the risk is mitigated almost entirely by the % down payment required which will be the equity the hard money owner is comfortable having in the property if you can’t make the payments.
After my escrow fell through 6 months ago I’ve been content to wait another 1-2 years to see if the low end prices come back from the tax credit bounce. It is starting to look OK this fall but the spring bounce is right around the corner 🙁
ParticipantI investigated hard money lending somewhat seriously for myself in early 2010. The quote you need to remember is hard money lenders “loan to own”.
That is, hard money lenders expect either to get paid back quickly (thus the high points charged) or they expect to make money by foreclosing and taking your down payment (thus the high down payment). As stated above the risk is mitigated almost entirely by the % down payment required which will be the equity the hard money owner is comfortable having in the property if you can’t make the payments.
After my escrow fell through 6 months ago I’ve been content to wait another 1-2 years to see if the low end prices come back from the tax credit bounce. It is starting to look OK this fall but the spring bounce is right around the corner 🙁
ParticipantI investigated hard money lending somewhat seriously for myself in early 2010. The quote you need to remember is hard money lenders “loan to own”.
That is, hard money lenders expect either to get paid back quickly (thus the high points charged) or they expect to make money by foreclosing and taking your down payment (thus the high down payment). As stated above the risk is mitigated almost entirely by the % down payment required which will be the equity the hard money owner is comfortable having in the property if you can’t make the payments.
After my escrow fell through 6 months ago I’ve been content to wait another 1-2 years to see if the low end prices come back from the tax credit bounce. It is starting to look OK this fall but the spring bounce is right around the corner 🙁
ParticipantI investigated hard money lending somewhat seriously for myself in early 2010. The quote you need to remember is hard money lenders “loan to own”.
That is, hard money lenders expect either to get paid back quickly (thus the high points charged) or they expect to make money by foreclosing and taking your down payment (thus the high down payment). As stated above the risk is mitigated almost entirely by the % down payment required which will be the equity the hard money owner is comfortable having in the property if you can’t make the payments.
After my escrow fell through 6 months ago I’ve been content to wait another 1-2 years to see if the low end prices come back from the tax credit bounce. It is starting to look OK this fall but the spring bounce is right around the corner 🙁
ParticipantAnother way a bad credit score can hurt…
Since we have been married all utilities have been in my name due to my better credit score (more than 2x the score). After our recent failed escrow we decided to rent another year but move out of our apartment into a house with a yard.
Many if not most property management companies will not rent to us due to my wife’s terrible score. My excellent score does not matter. Even though my wife is not employed and we stated on the first application that 100% of the payment will be mine and 0% hers, the manager insisted on each person over 18 qualifying individually (only after taking the excessive $70 application fee). We got smart after that and started asking up front about the low score issue.
Most managers are content hiding behind some interpretation of California law to explain if they did not have this policy it would be discriminatory. I guess we were looking too high end on the rentals and there are plenty of people looking with excellent credit. Otherwise such a policy would seem to needlessly reduce demand.
It blows my mind to be honest. But I am more than happy to not rent from such managers.
We recently found a good place after a long and frustrating search at a price 200-250 below what it would easily rent for by an owner who took the time to personally screen us. But the low score made things much more difficult than I thought reasonable.
ParticipantAnother way a bad credit score can hurt…
Since we have been married all utilities have been in my name due to my better credit score (more than 2x the score). After our recent failed escrow we decided to rent another year but move out of our apartment into a house with a yard.
Many if not most property management companies will not rent to us due to my wife’s terrible score. My excellent score does not matter. Even though my wife is not employed and we stated on the first application that 100% of the payment will be mine and 0% hers, the manager insisted on each person over 18 qualifying individually (only after taking the excessive $70 application fee). We got smart after that and started asking up front about the low score issue.
Most managers are content hiding behind some interpretation of California law to explain if they did not have this policy it would be discriminatory. I guess we were looking too high end on the rentals and there are plenty of people looking with excellent credit. Otherwise such a policy would seem to needlessly reduce demand.
It blows my mind to be honest. But I am more than happy to not rent from such managers.
We recently found a good place after a long and frustrating search at a price 200-250 below what it would easily rent for by an owner who took the time to personally screen us. But the low score made things much more difficult than I thought reasonable.
ParticipantAnother way a bad credit score can hurt…
Since we have been married all utilities have been in my name due to my better credit score (more than 2x the score). After our recent failed escrow we decided to rent another year but move out of our apartment into a house with a yard.
Many if not most property management companies will not rent to us due to my wife’s terrible score. My excellent score does not matter. Even though my wife is not employed and we stated on the first application that 100% of the payment will be mine and 0% hers, the manager insisted on each person over 18 qualifying individually (only after taking the excessive $70 application fee). We got smart after that and started asking up front about the low score issue.
Most managers are content hiding behind some interpretation of California law to explain if they did not have this policy it would be discriminatory. I guess we were looking too high end on the rentals and there are plenty of people looking with excellent credit. Otherwise such a policy would seem to needlessly reduce demand.
It blows my mind to be honest. But I am more than happy to not rent from such managers.
We recently found a good place after a long and frustrating search at a price 200-250 below what it would easily rent for by an owner who took the time to personally screen us. But the low score made things much more difficult than I thought reasonable.
ParticipantAnother way a bad credit score can hurt…
Since we have been married all utilities have been in my name due to my better credit score (more than 2x the score). After our recent failed escrow we decided to rent another year but move out of our apartment into a house with a yard.
Many if not most property management companies will not rent to us due to my wife’s terrible score. My excellent score does not matter. Even though my wife is not employed and we stated on the first application that 100% of the payment will be mine and 0% hers, the manager insisted on each person over 18 qualifying individually (only after taking the excessive $70 application fee). We got smart after that and started asking up front about the low score issue.
Most managers are content hiding behind some interpretation of California law to explain if they did not have this policy it would be discriminatory. I guess we were looking too high end on the rentals and there are plenty of people looking with excellent credit. Otherwise such a policy would seem to needlessly reduce demand.
It blows my mind to be honest. But I am more than happy to not rent from such managers.
We recently found a good place after a long and frustrating search at a price 200-250 below what it would easily rent for by an owner who took the time to personally screen us. But the low score made things much more difficult than I thought reasonable.
ParticipantAnother way a bad credit score can hurt…
Since we have been married all utilities have been in my name due to my better credit score (more than 2x the score). After our recent failed escrow we decided to rent another year but move out of our apartment into a house with a yard.
Many if not most property management companies will not rent to us due to my wife’s terrible score. My excellent score does not matter. Even though my wife is not employed and we stated on the first application that 100% of the payment will be mine and 0% hers, the manager insisted on each person over 18 qualifying individually (only after taking the excessive $70 application fee). We got smart after that and started asking up front about the low score issue.
Most managers are content hiding behind some interpretation of California law to explain if they did not have this policy it would be discriminatory. I guess we were looking too high end on the rentals and there are plenty of people looking with excellent credit. Otherwise such a policy would seem to needlessly reduce demand.
It blows my mind to be honest. But I am more than happy to not rent from such managers.
We recently found a good place after a long and frustrating search at a price 200-250 below what it would easily rent for by an owner who took the time to personally screen us. But the low score made things much more difficult than I thought reasonable.
ParticipantI read the comments but don’t think anyone has hit on the obvious: medical debt. I did see loss of job mentioned as a legitimate reason credit may be bad.
Employers do not care!
Medical debt is different in that it is not a choice. If you don’t have insurance and get sick you will have many thousands of dollars in collections in short order.
I agree that credit score in many ways shows how “good” a debt consumerist slave you are. I am outraged that I am forced to be in such a ridiculous system.
My wife was denied employment by TSA specifically and only because of unpaid medical debt. By the time I met her this was already in collections and had torpedoed her score so I did not feel responsible for paying it. I do feel responsible for figuring out how to clean her record in the future. Her experience is that a lack of good credit score meant no new credit issued which has eventually meant only negative remarks in her credit history.
If employers are simply screening the scores like a computer I strongly disagree in using credit in hiring decisions. Poor credit is a vicious downward spiral which results in only paying cash for things (responsible behavior) but this forced responsibility is not rewarded. It is punished. How can my wife pay her bills if she can’t get a job? A real Catch 22. The jobs she can get do not pay enough to leave anything left to pay off significant debt. The fact that it is already in collections slams the prison door. She will be low wage / unemployable until time heals her credit problems.
ParticipantI read the comments but don’t think anyone has hit on the obvious: medical debt. I did see loss of job mentioned as a legitimate reason credit may be bad.
Employers do not care!
Medical debt is different in that it is not a choice. If you don’t have insurance and get sick you will have many thousands of dollars in collections in short order.
I agree that credit score in many ways shows how “good” a debt consumerist slave you are. I am outraged that I am forced to be in such a ridiculous system.
My wife was denied employment by TSA specifically and only because of unpaid medical debt. By the time I met her this was already in collections and had torpedoed her score so I did not feel responsible for paying it. I do feel responsible for figuring out how to clean her record in the future. Her experience is that a lack of good credit score meant no new credit issued which has eventually meant only negative remarks in her credit history.
If employers are simply screening the scores like a computer I strongly disagree in using credit in hiring decisions. Poor credit is a vicious downward spiral which results in only paying cash for things (responsible behavior) but this forced responsibility is not rewarded. It is punished. How can my wife pay her bills if she can’t get a job? A real Catch 22. The jobs she can get do not pay enough to leave anything left to pay off significant debt. The fact that it is already in collections slams the prison door. She will be low wage / unemployable until time heals her credit problems.
ParticipantI read the comments but don’t think anyone has hit on the obvious: medical debt. I did see loss of job mentioned as a legitimate reason credit may be bad.
Employers do not care!
Medical debt is different in that it is not a choice. If you don’t have insurance and get sick you will have many thousands of dollars in collections in short order.
I agree that credit score in many ways shows how “good” a debt consumerist slave you are. I am outraged that I am forced to be in such a ridiculous system.
My wife was denied employment by TSA specifically and only because of unpaid medical debt. By the time I met her this was already in collections and had torpedoed her score so I did not feel responsible for paying it. I do feel responsible for figuring out how to clean her record in the future. Her experience is that a lack of good credit score meant no new credit issued which has eventually meant only negative remarks in her credit history.
If employers are simply screening the scores like a computer I strongly disagree in using credit in hiring decisions. Poor credit is a vicious downward spiral which results in only paying cash for things (responsible behavior) but this forced responsibility is not rewarded. It is punished. How can my wife pay her bills if she can’t get a job? A real Catch 22. The jobs she can get do not pay enough to leave anything left to pay off significant debt. The fact that it is already in collections slams the prison door. She will be low wage / unemployable until time heals her credit problems.
ParticipantI read the comments but don’t think anyone has hit on the obvious: medical debt. I did see loss of job mentioned as a legitimate reason credit may be bad.
Employers do not care!
Medical debt is different in that it is not a choice. If you don’t have insurance and get sick you will have many thousands of dollars in collections in short order.
I agree that credit score in many ways shows how “good” a debt consumerist slave you are. I am outraged that I am forced to be in such a ridiculous system.
My wife was denied employment by TSA specifically and only because of unpaid medical debt. By the time I met her this was already in collections and had torpedoed her score so I did not feel responsible for paying it. I do feel responsible for figuring out how to clean her record in the future. Her experience is that a lack of good credit score meant no new credit issued which has eventually meant only negative remarks in her credit history.
If employers are simply screening the scores like a computer I strongly disagree in using credit in hiring decisions. Poor credit is a vicious downward spiral which results in only paying cash for things (responsible behavior) but this forced responsibility is not rewarded. It is punished. How can my wife pay her bills if she can’t get a job? A real Catch 22. The jobs she can get do not pay enough to leave anything left to pay off significant debt. The fact that it is already in collections slams the prison door. She will be low wage / unemployable until time heals her credit problems.
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