Covid-19 [Corona Virus] Defer your mortgage protect your cashflow

[Rob Massopust]

🏠Clearly, it's a tough time to be a homeowner, landlord or tenant in this world pandemic. If your income has taken a hit as a result of the COVID-19 outbreak, or you fear it's about to, the good news is that you may be able to get some relief from your mortgage, credit cards, regular bills, utilities, car loan and more. The key is to act quickly before things get worse or the banks and servicers become bogged down in the sheer amount of requests and and ongoing distressed homeowners.

YOUR MORTGAGE. You must take advantage immediately of the mortgage forbearance programs. A forbearance is a suspension, not a deletion of the debt. This can help you for 90 days to up to 1 year. Bottom line, NO HOUSE PAYMENT FOR UP TO A YEAR AND NO CREDIT HIT. You can do this on your personal residence as well as rental properties. Do NOT delay action. YES, it may be possible to collect rent payments and not make the mortgage payment if you have a forbearance. You MUST follow the agreement of your forbearance or modification to avoid credit reporting.

Critical note: read and understand the 12 month mortgage forbearance programs apply to ALL types of property: your primary residence, your rental properties, vacation rentals, etc.

I've been busy last few weeks strategizing and working on a plan to work "Virtually" and try to look past all this noise and fog and try to look to see where I can help homeowners and investors going forward. Trying to figure out what is going to transpire and how real estate prices are going to be affected. It seems that they are not trending with the stock market, but they will. Granted real estate prices are a slow lagging indicator and there has been so much pent up demand, competition and good jobs and low rates, rents are up and prices up over 6% in my local area.  So it would be safe to say we will have a slow down and it will be rough patch but figured we would get through the mess. The overvaluation that we have all been fussing about is going to be our undoing. We have such a overvalued debt bubble that its simply out of control. But ultimately was saying this too shall pass!

I dont feel that way in the last 5 days. All bets are off and its going to get much worse before it gets better or really worse. 

We have never had a trifecta of headwinds like we do now. It is going to be much worse than 2008, there is no amount of printing [ie stimulus] that can get out of this. Every industry is going to be bailed out. Every household is getting 1000's. Mortgages are able to defer for up to 12 months, no evicitions and when you start putting all the dots together it spells out WTF! Where does it end, we are at just the beginning. 

Recession

https://www.ocregister.com/2020/03/16/coronavirus-pushes-u-s-into-recession-california-to-be-hit-hardest-ucla-economists-say/

Oil

https://www.biggerpockets.com/blog/coronavirus-harm-real-estate-market-oil-price-war

Covid-19

https://www.kcra.com/article/newsom-more-than-half-of-california-projected-to-contract-covid-19/31791343#

We are in a systematic designed destruction of the world economy, the FED [and all central banks in the world, follow same gameplan] is going to become the buyer and seller of last resort. They are going to end up owning the world. They are going to declare marshall law and ruin every business and employee out there. If we are thinking that real estate is not going to be harmed we need to rethink everything. 

Tell me how this ends, what is the best case and exit strategy. Everything proposed is a short term marginal fix.