Forbearance and eviction freeze

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Forbearance and eviction freeze

Walter Fabiszewski
Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes

I was just thinking about this today as I was driving home: the federal government has implemented an evection freeze in effect until December 31, 2020 for all tenants claiming to be adversely affected by COVID-19. They’ve also told banks who have issued federally backed mortgages that they must provide forbearance for any homeowners claiming to be affected by COVID-19. Are there any programs requiring banks who issued car loans to cease and desist repos for car owners suffering from the effects of COVID?  When I first got out of my own I was always told that paying the rent should be my first priority because I need a roof over my head. All the other bills come secondary. Thankfully all of my tenants are paying their rent on time. However I have some friends who have tenants claiming hardships and not paying rent because they know they can’t be evicted right now. One tenant even told my friend that he can’t afford to pay the rent because he has to pay his car loan. Why are landlords getting screwed and have to carry a property if banks with car loans are still allowed to repossess cars?

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Patricia Steiner
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
5y

The eviction moratorium is to avoid an increase spread of the virus through homelessness/couch surfing/more.  But you already know this...there is "no right to ride" so having a car repossessed is not on the same level.  But here's what landlords can do:  Sue for unpaid rent...don't evict - sue.  File a Small Claims Court Action and go after your rent.  The tenant might not be paying their rent - but chances are they are paying for their shiny ride because taking the bus sucks. Time to shift their priorities!  The moratorium is only on eviction.  You can still sue and you can still file for eviction - which I recommend to get your place in line once the moratorium is lifted.

And, please know that I totally get your frustration. This was one crazy way for the government to avoid doing its job during a national crisis.  All we can do is know what the moratorium doesn't include and capitalize on those remedies.  

Thanks for posting what you did...many of us are thinking it and you had the courage to say it.

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  • Patricia Steiner
    Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
    5y

    The eviction moratorium is to avoid an increase spread of the virus through homelessness/couch surfing/more.  But you already know this...there is "no right to ride" so having a car repossessed is not on the same level.  But here's what landlords can do:  Sue for unpaid rent...don't evict - sue.  File a Small Claims Court Action and go after your rent.  The tenant might not be paying their rent - but chances are they are paying for their shiny ride because taking the bus sucks. Time to shift their priorities!  The moratorium is only on eviction.  You can still sue and you can still file for eviction - which I recommend to get your place in line once the moratorium is lifted.

    And, please know that I totally get your frustration. This was one crazy way for the government to avoid doing its job during a national crisis.  All we can do is know what the moratorium doesn't include and capitalize on those remedies.  

    Thanks for posting what you did...many of us are thinking it and you had the courage to say it.

    7Reply
  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    5y
    Originally posted by @Walter Fabiszewski:

    I was just thinking about this today as I was driving home: the federal government has implemented an evection freeze in effect until December 31, 2020 for all tenants claiming to be adversely affected by COVID-19. They’ve also told banks who have issued federally backed mortgages that they must provide forbearance for any homeowners claiming to be affected by COVID-19. Are there any programs requiring banks who issued car loans to cease and desist repos for car owners suffering from the effects of COVID?  When I first got out of my own I was always told that paying the rent should be my first priority because I need a roof over my head. All the other bills come secondary. Thankfully all of my tenants are paying their rent on time. However I have some friends who have tenants claiming hardships and not paying rent because they know they can’t be evicted right now. One tenant even told my friend that he can’t afford to pay the rent because he has to pay his car loan. Why are landlords getting screwed and have to carry a property if banks with car loans are still allowed to repossess cars?

     Very valid points. The best I can tell a lot people are not staying home hiding out and waiting for the Covid scare to pass. They are getting out and about and doing tons of things and some seem to be  having a ball with the rent money that they are not paying the landlord. 

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  • Walter Fabiszewski
    OP
    Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    5y

    @Joe S.

    I am not a heartless person.  I had/have a plan if any of my tenants come to me with issues paying rent due to COVID.  But I find it appalling that some of these tenants are mistakenly thinking that they are going to get away with just not paying rent because "they don't have to".  I've seen a few videos posted by real estate attorneys where they said that there are situations where you can file for eviction and sue for rent like @Patricia Steiner suggested.

    1Reply
  • Jason Heard
    New to Real Estate · Atlanta Georgia Metro Area · Member since 2019 · 12 posts · 7 votes
    5y

    What ramifications in the market do you all foresee when the moratorium is lifted at the end of the year? Will it be business as usual, or will there be a glut of evictions and foreclosures?

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  • James G.
    Investor · St Louis, MO · Member since 2017 · 250 posts · 181 votes
    5y

    It's a great point that you bring up and many landlords are thinking the same thing. It is now more crucial than ever to try and work with your tenants, maybe offer them cash for keys if necessary, maybe consider working a side job for extra income... I'm not quite sure why the government is doing this at all- seems to me like they are just delaying the inevitable 

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  • Walter Fabiszewski
    OP
    Investor · Pompano Beach, FL · Member since 2016 · 57 posts · 37 votes
    5y

    I have a question. Not that I plan on applying for anything, but are landlords able to put their mortgage account in forbearance or is it only homeowners living in their properties?

    0Reply
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