Cosigning for a fee!

[aaj67]

My question is about businesses that cosign an apartment lease for a fee. I came across several that do that with different terms. I think their cosigning is limited to apartment rentals.
I might need a co-signer to rent a place after foreclosure.

I want to know if anyone heard of them or had used them. I want to make sure they are legit. Here are examples of this type of business : Truquill, Wecosign and co-signer.

[justbroke]

Interesting. I have never knew about this practice until just now.

[aaj67]

Interesting. I have never knew about this practice until just now.

Same here. I just found out about them last night as I was searching for "renting with bad credit". I'm just wondering if they are legit.

[aaj67]

I found this article about them:

Are lease co-signers worth the price?
These new firms offer to ease the apartment hunt for folks with shaky finances. But their fees are anything but low-rent.

http://money.msn.com/saving-money-tips/post.aspx?post=ddab0474-2311-4cc7-b509-9bda1b4f53df

What do you think?

[keepsmiling]

I think sometimes ya gotta do what ya gotta do.
If no other avenues work out and the alternative is to be in a box.....

[aaj67]

I think sometimes ya gotta do what ya gotta do.
If no other avenues work out and the alternative is to be in a box.....

I agree. I don't mind paying a fee. I'm only worried about them doing what they claim they will do.

[HHM]

What sort of fee do they charge?

Interesting, seems like a high risk venture. But, it makes sense that it is only residential leases since the downside is usually relatively minor.

[aaj67]

What sort of fee do they charge?

Interesting, seems like a high risk venture. But, it makes sense that it is only residential leases since the downside is usually relatively minor.

As far as I know, Truquill charges $60 to enroll in the program, then 125% of one month rent after the apartment's approval.

Wecosign charges $100 to sign up (refundable), then 12 monthly payments equal to 10% of the rent. In some cases they might charge 6 months in advance. So if the rent is $1000, the monthly payment to them will be $100. If they require 6 months in advance then I will have to pay $600 after the apartment's approval.

[ValleYum]

Resigned2BK mentioned one of these type companies in her long thread about the Trustee forcing a short sale.

SureDeposit does this at a local complex. It sounds like a surety bond.

To take advantage of SureDeposit, simply read and complete a Bond Acknowledgment Form when your new lease is approved and pay the one-time nonrefundable premium. With SureDeposit, you only pay once for the life of your tenancy. Stay for one year or fifty years, all for the same one-time payment.

Very interesting concept.

[justbroke]

I have read about SureDeposit and have used it before. It is more a "deposit" program rather than a a co-signer. The apartment that I rented for my work assignment was acquired 2-days after discharge. They approved me on my income and current credit score (which was in the low 600s at the time). They then asked if I wanted to pay the deposit, $1,300 or use SureDeposit which was $225. I used SureDeposit only because I was fresh out of bankruptcy and didn't want to tie up money.

If you're going to use SureDeposit, you really need to think about the "cost of money". Was the $225 well spent where I would have had the $1,300 refunded when I left? If you're there for less than one year, the SureDeposit "guarantee" is probably not worth it. However, if you look at it over a 2 or more year lease, it could be!

I like SureDeposit as it could be useful, but they do not work with smaller landlords and I believe they only deal with properties with 100s of apartment units.

[AngelinaCatHub]

Well seems like an entrepreneur came up with a good idea. It sure is a crap shoot, but then of course they are on the hook but no doubt have other participants to (insure) at that same location. Wish I thought of it. Wish I had the money to put it into effect. I like the idea. 'Hub

[justbroke]

I wonder if these companies operate in Florida. The reason I ask is that Florida is very very particular about people selling anything that appears to be "insurance". I don't blame Florida for regulating insurance because you want to make sure it is of the regulated type! I did look up Insurent and they are actually owned by a major insurance company which is licensed in Florida to sell "insurance".

[aaj67]

I have read about SureDeposit and have used it before. It is more a "deposit" program rather than a a co-signer. The apartment that I rented for my work assignment was acquired 2-days after discharge. They approved me on my income and current credit score (which was in the low 600s at the time). They then asked if I wanted to pay the deposit, $1,300 or use SureDeposit which was $225. I used SureDeposit only because I was fresh out of bankruptcy and didn't want to tie up money.

If you're going to use SureDeposit, you really need to think about the "cost of money". Was the $225 well spent where I would have had the $1,300 refunded when I left? If you're there for less than one year, the SureDeposit "guarantee" is probably not worth it. However, if you look at it over a 2 or more year lease, it could be!

I like SureDeposit as it could be useful, but they do not work with smaller landlords and I believe they only deal with properties with 100s of apartment units.

Exactly, SureDeposit is a different program. In my case it will not work, I need a co-signer.

[aaj67]

Well seems like an entrepreneur came up with a good idea. It sure is a crap shoot, but then of course they are on the hook but no doubt have other participants to (insure) at that same location. Wish I thought of it. Wish I had the money to put it into effect. I like the idea. 'Hub

I agree, I think it is a very good idea. There is definitely a market for it.

[aaj67]

Their programs are totally different. For example, one company rents the place as a corporate account then leases it to the renter, in other words, the apartment management doesn't deal at all with me, they do not even run my credit, they only run their credit. I they are approved, I have to pay their fees in addition to the apartment's security deposit. While another company will simply co-sign the lease. So in this case I will apply for the apartment and if they accept a co-signer then I will let the company know to co-sign for me for a fee that is payable on a monthly basis.