I’m looking for some advice. I have an interested applicant (family of 4) and he’s been upfront and told me he has an outstanding CCJ for around £5k, but his wife has a good credit file. The CCJ has been in place for 5 years, and is still being paid off. He tells me that the CCJ is in reference to a loan that was taken out on behalf of a family member, not himself. (not sure if I believe this, but even if I did, it wouldn’t really make any difference).
They have a combined income of around £35k, which I think will be fine to cover the cost of rent + other bills & living expenses. He’s also told me that he’d be willing to pay 6 or possibly even 12 months upfront due to the CCJ.
I’m not sure what to make of this. On one hand I can’t help but to think if they’ve got that much liquid cash, why not pay off the CCJ? Does that then mean the thing about it being a family member’s debt could be true?
They’ve never previously rented, and currently live with parents. I haven’t done any reference checks on them yet as I’m not 100% sure on them. Would really appreciate some feedback on this from the OR community.
What are the potential pitfalls I need to be wary of? If I was to take on 6 or 12 months upfront, would I be potentially postponing issues for later down the line?