Credit Reports Evaluation - Posted by Gene (PA)

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.

Credit Reports Evaluation - Posted by Gene ¶

Posted by Gene ¶ on March 02, 2004 at 14:38:20:

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).

Karl Kleiner