Cosigning for a fee!

[justbroke]

In the legal sense, aj's response seems better for contract law. You just have the landlord allow the sublet of the apartment to this guaranty company. The guaranty company then sublets it to the person with credit issues. Voila!

[aaj67]

In the legal since, aj's response seems better for contract law. You just have the landlord allow the sublet of the apartment to this guaranty company. The guaranty company then sublets it to the person with credit issues. Voila!

I prefer that concept too. The company that will charge me for fees will be the lease holder. However, according to them, they have to be approved based on their credit, number of employees in their company and the length of time they have been in business. They have been in business for 18 or 19 months. Because they are fairly new, some landlords might still turn them down. If they are denied, they try at another apartment of my choice. Having said that, they are confident that they could get it done.

[aaj67]

I called them and I asked them to tell me how it works step by step. Here it is:

1-I enroll in their program by paying a $60 fee.
2-I find the apartment I want to rent and let them know.
3-They submit a corporate application to the landlord. They list me on their application as an occupant.
4-The landlord approves them.
5-I go to the landlord's rental office for an interview, I pay the application fee and the required security deposit.
6-I pay the company their fee which is equivalent to 125% of a month rent. This should be done BEFORE I move into the apartment.
7-After 12 months, if I still can't qualify, they will renew the lease and charge me a reduced fee depending on my rental payment performance.

It sounds good. But I'm wondering though, if I move out of the apartment, would the landlord pay me back the security deposit or would they pay it back to the company who signed the lease? Thoughts?

[aaj67]

Anyone heard of that concept? Anyone knows someone that actually used cosigning services?

[justbroke]

I have only read about this here and then did some research. I do not personally know of anyone who has used this type of service to get an apartment/lease. Most people would just get a guarantor such as a relative or friend.

[HHM]

Is the 125% of rent a one time fee, or are you paying the cosigning service 125% of the rent, and the service turns around and actually pays the rent.

[aaj67]

Is the 125% of rent a one time fee, or are you paying the cosigning service 125% of the rent, and the service turns around and actually pays the rent.

According to them, the 125% of rent is a one time fee. I pay the rent to the landlord.

[aaj67]

I have only read about this here and then did some research. I do not personally know of anyone who has used this type of service to get an apartment/lease. Most people would just get a guarantor such as a relative or friend.

I'm trying to avoid asking a friend or a relative. So I'm researching this concept, for some odd reason I can't find anyone who heard of it!

[justbroke]

I know what you mean aaj67. Except for a very limited number of occasions of asking my mom for help, I have never asked a friend or family member for any help... not even for $20. In fact, most of my friends and family believe I'm "rich", have "extra" computers to give them, and believe I'm living the life of Job; only they only see the wealthy and fatherly side of that story! (Job did end up bankruptcy... so maybe I am Job!)

[tobee43]

as a general rule it's never a great situation when you have to go to family for help. on the side of the "mom" being that person, well, personally as one, i'd rather give with warm hands than a cold heart. i wouldn't want my kids paying someone an outrageous fee because they were to proud to ask me. also, i know when we purchased this house, as hard as it was, i had to ask for a loan to increase the down payment and offer the owner more money to make the deal more attractive for him. it worked and we paid back every dime within the first 6 months of being in our new house.

times are just different now. people in their 30s, 40s and 50s are even moving back in with their parents because times are so hard for many. ( i would rather sell everything i have and give them the money to prevent that! lol!) i still understand why it's so hard to ask. as pointed out, if it's really going to help you and it's worth it, use that company if you feel comfortable doing so. best of luck to you, i'm certain it will all work out.