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Evictions & your credit report
Q: Back in my college years, I lived with two
other roommates. They decided they
wanted to break the lease. They
informed the landlord, and she found a suitable candidate to rent our
apartment. I went out of town, but I
had planned to move out when I returned home.
When I came home, I found my two roommates had completely moved their
belongings. Of course, mine was still
in the apartment.
While I was gone, the landlord needed us to
move out earlier than the original plan.
But, I wasn’t notified. Therefore,
the landlord served us with papers to appear in court although I was never
personally served, and didn’t sign anything.
Recently, I found out there's a judgment
against me through on my credit report.
Apparently, it shows up as an eviction.
I have looked on the internet at the judgment document, but it doesn’t
state that this was an eviction. Is
there a numerical code for an eviction?
Also, if I did not appear in court and was
never served with papers, is this legal?
If so, how can I go about getting this case dropped and off my credit
report?
Pompano Beach, FL
A: Ah, the ever
mysterious credit report. It’s so
important to keep it as spotless as possible because it affects so much. Do you pay interest on a home mortgage, a
car loan, or a credit card? Your credit
report greatly impact the interest rate your creditors set. Especially over the 50 plus adult years most
have, the difference between good interest rates and bad interest rates adds up
rapidly.
The three major
credit reporting agencies get their information two ways. Some creditors, like your creditors, report
your information periodically. In
exchange for access to the agencies’ credit reports, the big credit companies
have to share information about the debts owed them. For other debts, credit reporting agencies collect information
from public records such as court judgment filings and bankruptcy filings.
Without looking at
the judgment, of course I can’t tell whether it was an eviction. But, it may that the judgment was an eviction,
which was described by some technical legal mumbo jumbo. Tradition dies hard in the legal
profession. We still describe things by
words several hundred years old rather than using a modern word that everybody
understands.
The judgment may be
perfectly legal. You don’t have to
appear in court as a defendant. The
landlord can serve you by other means in many states than personally handing
you a summons, especially for an eviction case. In your case, many states would have allowed the landlord to serve
you by leaving the court documents with one of your roommates. Otherwise, it’d be way too easy to
constantly dodge a process server.
But, you may be able
to remove it from your credit report.
Write to the credit reporting agency and request that they verify the
item. Your request requires them to
contact the creditor to verify the debt.
If the creditor doesn’t respond with the appropriate verification
information, the credit reporting agency must remove the item from your credit
report. With smaller creditors, this
often happens.
If that fails,
there’s not a whole lot else you can do.
Fortunately, however, past due debt information only stays on your
credit for seven years. It won’t haunt
you for the rest of your life.
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When your roommate leaves
Q: My roommate completely split with 2 months
still left on our lease. She totally
moved out and says she will not pay for the remaining two months! Both of our names are on the lease. Since I have not found a new roommate, the
"Roommate Release Form" has NOT been signed (this form releases her
from paying rent). The lease is the
only legal document between us, i.e. we did not sign any other kind of written
contract between us. I can't afford to
pay the entire rent. Can I sue her for
half the rent for the next two months even though she is not living there
anymore? If I can sue, how long will it
take to get the money? What are my
rights in this type of situation?
Memphis, TN
A: Roommates. They can wreak havoc in your life, often
worse than a bad landlord! But, a large
percentage of renters can’t rent without one or many of them, especially in
expensive cities like New York or San Francisco.
Ultimately, it comes
down to trust in your fellow human being.
No matter what, stuff happens! A
roommate might lose a job, or get transferred, or get married. But, will they treat you fairly if they have
to leave?
Find out what kind
of a person your potential roommate is before you move in with them. Ideally, it’s someone you know well
already. (But, we all know your friends
can stab you in the back deeper than any stranger.) If not, spend a little time with your potential roommate. Have a drink with them. Have lunch with them. Better yet, talk to their old roommates if
they’ve got them.
If things go bad,
yes, you can sue. She still owes you
for half the rent. But, this will never
get you any money in time to pay the monthly rent. Even in a small claims court, it may take several months before
you can have your case heard. If you
win, you still might not collect the money you’re awarded.
In the future, make
sure you create a roommate
agreement before you move in. At the very least, you and your fellow
roommates will understand what each considers fair treatment. Also, you might try creating an additional
“deposit” fund of one or two months rent to cover a situation like yours.
For more advice on
roommate situations, see the Roommate
Center and check out the article How
to Handle a Deadbeat Roommate in the Renter’s
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About Phil Rhodes
Phil Rhodes is an experienced commercial credit attorney in Northern California with his own practice, emphasizing bankruptcy, real estate finance, and other consumer and small business credit issues. Phil is also a happy renter, now on his sixth successful landlord-tenant relationship. |
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Disclaimer
Information provided by Phil or Greg should not be construed as real estate or legal advice. State and local laws may vary, so please consult legal counsel in your area with respect to your individual situation.
The RENTNETR and Homestore.comTM family make no representation as to the accuracy or completeness of the statements made herein. Please see our Terms of Use for more information.
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