EscapeToMich

Morning all,

I've started looking at leasing a property in MI and nobody is willing to accept a UK credit report. Any ideas on how to get round this or very quickly build up my US credit as i really don't want to stump up payment for a whole year in advance.


I'm incredibly paranoid about doing this and the property getting foreclosed!

Failing that anybody got a shed in the back garden i can move in to in the Birmingham/Bloomfield Hills MI area

Cheers,

Paul.

Noorah101

http://britishexpats.com/wiki/Category:USA_Credit

Rene

Bob

As well as the wiki, have a search of the forums, this subject comes up almost weekly and there's a lot of good info to get you going.

Basically there is no quick way to build credit history in the US unless you had a AmEx card for 12 or more months in the UK to which there is a global transfer program.

Get used to having to put deposits down for everything.

Noorah101

You shouldn't have to pay a whole year in advance....probably just first month and last month's rent.

Rene

GeoffM

I've seen reports on here for 3 months' rent as a deposit, I think on top of the standard for those with good credit (and a history). I'd certainly try to negotiate that one year downwards significantly. Try and do a bit of research - has the property been empty for some time, ie are the owners desperate for somebody to rent? Use knowledge to your advantage! More likely to get somewhere with a private landlord than a big conglomeration who might not shift at all though.

Bob

That's standard anyway, along with anything from 1-3 months rent as a deposit, so depending on the market, offer to put down another month or two as a deposit.

HarryTheSpider

Also find out what limits are imposed by state law - e.g. A maximum for any security deposit...

fatbrit

You worry about foreclosure is real.

You really shouldn't have to pay up for a year in advance. Just show you're serious and provide alternatives. Let them run your credit if they want -- at least it won't show negatives.

sir_eccles

Sadly true. The only way to deal with it is to just ask the realtor/landlord/management company, "Is this property at risk of foreclosure? Is the landlord up to date with mortgage payments?".

Ideal answer is "Oh, they own it outright".

Bob

Worth asking to do a credit check on them too if they don't own the property outright...

Jscl

Providing salary information might help, if you're willing to give them that. If you explain you are new to the country and "look, here's my first paycheck, and the letter from my new job saying my salary is XXX per year" they might be a bit more understanding.

Bink

Yep! +1
When I first moved over I had to pay 3 months (first and last months plus one additional). I used a realtor and provided them a copy of my contract and a letter from my employer. This was sufficient for me to be able to rent a place. I then used a reference from my first landlord to rent another place a year later and then at the start of my third year, I was able to get a mortgage and buy (I'll be honest it wasn't the easiest transaction but it did go through okay - For this the underwriter for the mortgage company was willing to look at my UK credit report, especially since I had a UK mortgage).

Good luck!

Bob

That's standard for most people in any busy part of the country though, even with good credit history.

Tarkak9

You should address foreclosure scenario in a lease, what happens with rent and any/all deposits etc; ideally if the owner doesn't pay, nor should you under such circumstances. Also, tenancy and occupancy due to foreclosure.. (often banks have to evict tenants but they may also be interested with good ones occupying the property to avoid it being vacant etc). Whatever you do, have it all in writing, that upon foreclosure and if its agreed that you don't have to pay rent due to foreclosure, keep a safe copy because the last thing you want is for LL to ding any credit report and you have to contest it. Otherwise, reserve the right to terminate the lease to save all hassle.

Ideally, you want a security deposit held in escrow, never pay it to a private LL. (prior approval that it is returned to you should LL default and go into foreclosure)

Bob

This might also be the law depending on the state. In MA, it's got to be put into a bank account that is in both names and upon end of lease, gets signed over to the tenant with any interest.

Reality is though, that's only happened to us the once in MA, and once up in Maine.