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What is the role of a guarantor? And how does one choose a guarantor?

Asked by Trulia New York, New York Mon Nov 19, 2012

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The two answers below are good and are extended explainations about the use of a Guarantor. To be specific, the role of a Guarantor is to shore up a perspective tenant if they do not have what the landlord considers enough income, work history and/or a good credit rating (FICO number). The Guarantor is in place to specifically insure that the landlord will receive their rent and the Guarantor is legally on the hook for payment if the tenant is unable to pay for whatever the reason.

In choosing a Gurantor, one should ask somebody who knows them well and for many years as the relationship will be truly tested. Most Guarantors are relatives of the renter. The trick is to find someone who realizes that they are in the legal line of fire (if you will) if the renter fails to meet their obligation to pay.
1 vote Thank Flag Link Mon Nov 19, 2012
Guarantor: If requested must be U.S. Citizen. Max 2 people can act as guarantor.
Income requirement: 80-100 x monthly rent.

Standard Paperwork needed:

Employee
1. Current Employment letter stating position held, date hire & yearly salary.
2. 3 recent pay stubs.
3. Current Bank statement s – checking & savings
4. Copy of valid state photo id. Current passport & or driving license.

Self employed
1. First two pages of the last two years tax returns 1040 ( 2010 & 2011 )
2. Current Bank statement – checking & savings
3. Copy of valid state photo id. Current passport & or driving license.
2 votes Thank Flag Link Mon Nov 19, 2012
When one's income or credit rating do not meet a landlords requirements (in Manhattan income qualification typically 40-50x the rent), a landlord may opt to take the applicant if he/she has a guarantor. If one is also a new hire, a landlord may request one as well. Guarantor financial requirements are more demanding with standards 80-100x the rent. Excellent credit is a must. Since landlord dictate their own preferences, some only take NY residents, and some Tri-state (NY/NJ/CT)
1 vote Thank Flag Link Mon Nov 19, 2012
Is a person that fullfills an obligation when the person responsible for the situation in a first place isnt able to
0 votes Thank Flag Link Tue Nov 20, 2012
A guarantor fullfills an obligation when the person responsible does not - i.e make a monthly rent or loan payment. All too often people who are asked to be guarantors look upon their obligation as merely doing someone a favor so the person can get an apartment or qualify for a loan. However, guarantors are just as legally responsible for the obligation as the person they are guarantying and suffer the same consequenses should they not fullfill the obligation. Therefore, in choosing a guarantor, you should ask someone who will actually make a payment that you cannot.
0 votes Thank Flag Link Tue Nov 20, 2012
A Guarantor acts as a co-signer. If you default the guarantor is respponsible for the payment. The answers below detail the terms for NYC.

Chris
0 votes Thank Flag Link Tue Nov 20, 2012
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