Background Check Dispute - Eviction & Identity Stolen - Grand Rapids, Michigan

[Mac Boeve]

I recently had an applicant who supposedly had their identity stolen. They had a low credit score but beyond that, they were a solid applicant based on their application and references. I ran a background check through RentPrep and it showed an eviction from a property that was not listed on their application. The applicant claims they were never evicted. However, during that time period, they were supposedly renting from a family member, so I don't fully trust that.

So, most likely the applicant was being dishonest. But it does make me wonder...  

How does one verify that an applicant has had their identity stolen? Assuming it was still in process.

How do property managers handle applicants that legitimately had their identity stolen?

If an applicant had a dispute with their Eviction Screening Report, how should the property manager handle this? Should I deny the applicant, but state that they can reapply once they have resolved the discrepancy? 

I'd lean toward trusting the Eviction Screening Report, but how often (if ever) are these incorrect? Could this possibly be caused by an identity theft?

Thanks!

[Drew Sygit]

@Mac Boeve if I had a dollar for every applicant claiming identify theft, they only cosigned for a relative or friend, they're working out a payment plan on that chargeoff or they have no idea what that is, so it must not be theirs - I wouldn't be here on BP!

Identify Theft: they didn't report it or do anything about it? UNLIKELY! So, they should be able to provide proof of police report and acknowledgement letter from one of the credit bureaus.

Cosigner: only idiots cosign and think it doesn't count against them. Wait until they get garrnished over it!

Alleged Payment Plan: no lender will move forward without sending a letter to them.

Evictions: make a list of the cities showing up on the background check and then log into the corresponding court websites to see if any landlord-tenant cases pop up. 
-Many applicants claim they weren't evicted, thinking it means bailiffs didn't remove them from a property. The fact that a landlord had to even start an eviction is not good.
- Best way to try to hide an eviction or bad relationship with landlord is to claim you were living with a relative and not paying rent or paying them cash. CANNOT VERIFY and they know it!

How are you deciding, "they were a solid applicant based on their application and references"?
-What references are going to give negative feedback?
-Why are you believing what they put on their application without supporting proof?

We use MLS PRD to look up actual owners of properties on application to confirm they aren't giving a family/friend as their landlord (fraud!). We do the same with addresses on their background checks that they didn't put on their application. We then use whitepages.com account to look up phone numbers to call those owners (not always easy).

If they've got bad credit, we also focus on stable income and employment. In addition to a YTD paystub, we ask for last years W-2(s). We'll even call an employer to verify work dates to see if applicant has a solid 2-year work history. Otherwise, how can they have stable income without stable employment continuity?

Of course, this take a lot of time and it's often easier to just deny them.

BTW: what is the Class of your property, as this sounds like a Class C applicant at best, more likely Class D. Only bad things will happen if you allow them in your Class A or B rental!