Posted on 04/09/2020 7:17:39 AM PDT by SeekAndFind
The United States may be headed for an unprecedented housing crisis -- the result of potentially millions of evictions and foreclosures.
The Wall Street Journal found that only 69 percent of apartment dwellers paid rent in the first part of April. That compares to more than 80 percent who paid rent during that time the previous month. Researchers at the City University of New York found that 44 percent of New Yorkers will have difficulty meeting their rent in April.
Congress and most states have passed temporary bans on evictions and foreclosures for many, but unless something is done, the number of homeless people is going to skyrocket.
The coronavirus-relief bill passed last month by Congress prohibits foreclosure on federally backed mortgage loans for 60 days, covering some 30 million homeowners. The bill also prohibits rental evictions for 120 days for properties secured by a government-backed mortgage. That covers about half of all multifamily homes. Beyond that, however, protections for renters [tend] to be haphazard, varying widely by state. As of this past weekend (policies are changing quickly), only 14 states have barred landlords from formally beginning the process of eviction, according to our data; 36 - plus the District of Columbia - still permit evictions to be filed.
Many of these states are in effect simply delaying hearings, typically for 60 or 90 days or until the state's emergency declaration lifts. What's more, only 21 states and D.C. have halted the execution of an eviction order issued before the coronavirus outbreak turned into a major health crisis.
(Excerpt) Read more at pjmedia.com ...
This is a huge problem for landlords, too. It's one thing to ask landlords to forego eviction proceedings. But how are they going to live if no one pays the rent? Many landlords are small and have a precarious cash flow. With no rent coming in, they can't live, either.
Many Landlords have to pay their mortgages, property taxes, maintenance, etc. How will they manage without rental income?
Given the scope of the problem, even larger landlords are going to be in trouble. Before the virus hit, there were about 600,000 evictions in the U.S. every year. Last month alone, 10 million people filed for unemployment. That spells trouble in the next several months.
There has to be a MASSIVE civil disobedience action within the next two weeks or we’re done.
Yep. It is imperative that the economy reopens next month. Word is out that the big auto makers are looking at April 27 as the start date.
But but, we had to shut down the states just to save one life.. nobody seems to think about the ramifications to all this.
Virtue signaling idiots sit at home feeling good about themselves posting those ribbons on Facebook that says, STAY HOME SAVE LIFES. They don’t get it.
Lots of landlords live off their rental income. If the rent doesn’t come in, then there is a domino effect on their ability to pay; meaning, the effect doesn’t stop there, it just keeps moving further up the chain.
Make no mistake, many, if not most, landlords are leveraged to the hilt. If rent stops coming in, they will not be able to make their mortgage payments. The banks are going to take another huge hit because of this crisis. As the death estimates are revised even further down, the fallout and finger-pointing is going to be epic in scale. This might make 2008 look like a walk in the park, assuming that the park isn’t closed.
I spoke with a banker friend last week who does serious commercial real estate lending. “My portfolio is in free fall.”
“Difficulty in meeting their rent” contracts is MUCH different than “not paying their rent”. Many of these people are opportunists skipping out on their obligations. Those who can pay, but don’t, should be penalized.
OTOH, if there really is a shortage of people who can pay their rent, who will the landlords get to fill the vacancy?
Yeah, I said that in the beginning, this is going to be the biggest transfer of wealth you have ever seen. We are doing everything for the common person at the expense of the property owners. This will become ugly come summer time.
I hate to say this but probably Chinese people.
No rent income no bills paid, no mortgage paid, no taxes paid.
Same for building owners.
Who can’t see how long the knock on effects of this are going to be? It has not even begun to end. We are just barely to the end of the beginning.
“Yep. It is imperative that the economy reopens next month”.
That’s right. We have no choice.
You still can’t get blood out of a turnip.
When no disconnects and no evictions were announced it became open season to default even for those with the ability to pay. They just won’t.
Others who have a hole in their income but are getting unemployment and the subsidy will just spend it.
They live hand to mouth. When they go back to work there is no extra to pay past bills. They never have money ahead. Every dollar is dedicated or used for drink, drugs and entertainment.
AOC told people NOT to pay rent.
I thought we were now “a nations of consumers”? Why is employment so important any way? /sarcastic
RE: AOC told people NOT to pay rent.
Did she tell Landlords not to pay their mortgages and property taxes as well?
I have 4 rentals, one is a truck driver, working and up to date,2 not working and waiting on unemployment to kick in, one working, was on reduced hours but now back to full time paid half on the first, the other half this week.All good people, We will work to get through this together.
We're not even through the first billing cycle.
Schumer wrecked USS McCrisis with the IndyMac letter.
Earlier this year I postulated, what would Schumer do to equal that, as residential real estate looked fairly sound.
Now we know - Schumer is going to attempt to unwind the commercial real estate mortgage market. Not as many players, but an absolute shit-disturber to be certain.
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