Posted by Gregory V. on March 03, 2004 at 08:33:43:
That’s a good question. This is based on part speculation and part what I’ve read on these boards. Most people applying to buy our Lonnie deals are usually in the 450-550 credit range. I’ve read post’s by some dealers on this forum that they let the Park Manager do the approval process (basically, if the park approves them for a lease, they will sell the house to that person); while others do their own evaluation independantly of the PM.
As I am quickly coming up on my first investment (can’t wait to get that tax refund in the mail to put the final nail in my savings plan), I am pondering this same question.
I think I am leaning towards taking a $20 application fee, partly to ensure the person is serious about the MH, but letting the park do that actual approval.
I tried searching the site for this but had no immediate success.
What criteria do you use to evaluate a buyer’s credit report? I know the obvious verifications as to employment, past landlord activity, etc., but what type of numbers on the report do you look for? I also know that at this level of financing you are rarely looking at 700+ but what should you see?
Are their any particular questions you use to the employer or current landlords that have proven successful indicators?
Re: Credit Reports Evaluation - Posted by Karl (Oh)
Posted by Karl (Oh) on March 03, 2004 at 14:05:15:
If they’re calling me, I assume their credit stinks. Most of my buyers are 450-600 with a bankruptcy as some point. Look at the reasons for their bad credit. I love medical bills (bad luck), I hate credit card debt (bad financial discipline).