All Forum Posts by: Paul Doherty

To OP, why aren't you moving to take advantage of the CARES Act which has provisions for two 6 month forbearances without penalties or interest (throws the loan payments to the end of the loan, extending the loan by the same number of months)? That's precisely the situation this is for (non-paying tenants due to the virus). Just document the non-payment and if possible get the reason documented from the renter and then contact your mortgage servicer.

https://www.natlawreview.com/a...

"Federally Backed Mortgages Borrowers under federally backed family mortgages may submit a forbearance request if they are experiencing financial hardship due to the COVID-19 crisis. The lender must grant the request, without penalties, fees or interest, for a period of up to 180 days (subject to another 180 day extension at borrower’s request). Foreclosure action is prohibited for the 60 day period beginning March 18, 2020. Multi-family borrowers (assets designed for occupancy of 5 or more families) are entitled to forbearance and foreclosure protection on slightly different terms, and renters of such dwellings are provided eviction protection."

https://assets.documentcloud.o...

Starting on page 567

FEDERALLY BACKED MORTGAGE LOAN.— The term ‘‘Federally backed mortgage loan’’ includes any loan which is secured by a first or subordinate lien on residential real property (including individual units of condominiums and cooperatives) designed principally for the occupancy of from 1- to 4 families IN GENERAL.—During the covered period, a borrower with a Federally backed mortgage loan experiencing a financial hardship due, directly or indirectly, to the COVID–19 emergency may request forbearance on the Federally backed mortgage loan, regardless of delinquency status, by— (A) submitting a request to the borrower’s servicer; and (B) affirming that the borrower is experiencing a financial hardship during the COVID– 19 emergency. DURATION OF FORBEARANCE.—Upon a request by a borrower for forbearance under para-graph (1), such forbearance shall be granted for up to 180 days, and shall be extended for an additional period of up to 180 days at the request of the borrower, provided that, at the borrower’s request, either the initial or extended period of forbearance may be shortened. ACCRUAL OF INTEREST OR FEES.—During a period of forbearance described in this subsection, no fees, penalties, or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the terms of the mortgage contract, shall accrue on the borrower’s account."

Over 90% of residential mortgages (4 unit or less properties) are covered by Fannie/Freddie/Ginnie.

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To document the damage you know is there from the smell, record yourself walking the place in low light/dark while waving a blacklight flash light. It will reveal the areas that are stained from pets.

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When the government has removed landlord’s tool that enables them to mitigate non-paying renters (eviction) then they need to address the other side of that equation as well, which is to enable landlords to deal with that without landlords needing to dig into their own funds for that. A landlord’s emergency fund isn’t there to provide free living to renters; it’s to cover for maintenance, repairs and vacancies.

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Originally posted by @Marcy Angulo:

In an effort to plan ahead & in the event that my Tenants have income loss, I contacted my 5 mortgage companies and so far 4 out of the 5 have granted "90 day payment relief". I simply sent a message through my online account & it was granted (no documentation required, just an online message or phone call). And it doesn't negatively affect our credit, no late payment fees or anything else. Just a thought for those who are concerned.

I definitely agree that it's best to work with our great Tenants than to evict them, & deal with re-renting, make ready, etc. So this was a great solution.

The critical question is, does interest still accrue? Or are they simply moving the next 3 month’s payments to the end of the mortgage? Or worse, are they expecting you to pay months 1-3 all at once in month 4?

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Originally posted by @David Grabiner:

Originally posted by @Brian Boyd:

Originally posted by @Kyle Bumpus:

Originally posted by @Heather Frusco:

The one I thing I hear from half of the smaller time landlords on here is that they would 'forgive the rent payment due to the pandemic' and then the same LL's will highlight that investors should have 3-6 month's of reserves in place for this... I'm sorry but these same 'investors' / landlords are likely not going to be here for much longer with that thought pattern (will likely find their foreclosed properties on the market soon). Tenants and really anyone else should ALSO have 3-6 months in reserves for times such as these. So if you have a responsible tenant/citizen which has 3-6 months in reserves in place there really is no missed rent payment.

What some of these 'investors' are failing to see it that it is not your position to cover someones living situation on your dime as in investor - that it is the state's responsibility, if that is something they would like to do. Have you seen any states instead offer to pay for a tenant's rent payment? ---- of course not and you won't because they would rather 'lean' on a landlord to 'adsorb' that cost. Look I'm not faulting you for covering someones rent during times like these in one of you rentals but if that's the case... I have a cousin that would love to rent one of your 'rent-free' units if you like to take him up on it.

We are certainly not callus to the situation but, any tenant's which we have that miss their rent payment on month 1 of this pandemic situation have dropped the ball they SHOULD also have 3-6 months of reserves but don't and as grown adults it is not a landlords or investor's responsibility to support another adult - heck the states don't even want to support these adults which is again why you don't see governments pay for tenant's rents - they just push it onto the landlord... how's that for an eye opener. Again not callus to the situation just realistic...if our tenant's miss payments during this whole situation, we will work with them to schedule a payment plan moving forward.... we will still file for eviction during this time and get it lined up for when the courts start processing again... and if by the time courts start processing evictions again an agreement hasn't been reached we will certainly carry out evictions as needed.

We currently have 3-6 months in reserves for all of our rentals but guess what?.... that is exactly what the are - reserves - which are meant to carry our properties over during long term evictions such as these... not meant to support adults which failed to prepare properly. For those looking to 'carry' your tenant's debts... a word of caution and important to ask yourself 'who will carry your debts once you have blown through your reserve and you are then facing a leaky roof, a leaky water heater, taxes, insurance, mortgage and utilities'?

@Arthur P. @Mike Wood @Brian Boyd Account Closed

It is absolutely callous. IT IS ALL OF OUR DUTY AS HUMAN BEINGS TO CARE FOR OUR FELLOW HUMAN IN TIMES OF CRISIS. You don't get to behave callously and then say "oh, but I'm not callous." Yes, you are. Sure, everybody should have 3-6 months of reserves. Cancer also shouldn't exist and money should grow on trees. While it may be true you will be hurt if one of your properties is foreclosed on, you will survive. The same can't necessarily be said about those you evict. One is CLEARLY more important than the other. In times of crisis, we prioritize the survival of the vulnerable, not your wealth. Sorry. To do otherwise would be deeply immoral.

Kyle- You do you. But the next time you decide to call out investors for protecting our properties, you are going to see what a federal lawsuit looks like. I am tired of those that disagree with us defaming us because you choose a different course. You crossed a line today and you are going to have to answer for it. I have already reported your post to BP. My next step is to find you and serve you with papers. I suspect you are in Bellevue, Washington.

WAIT WHAT? What lawsuit are you threatening here? I'm so confused, is it illegal to call someone Callous?

Only if you inappropriately capitalize it.

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Originally posted by @Alan Grobmeier:

@Paul Doherty, ALL of my rental are financed with conventional loans, not Fanny or Freddie. It looks like I’m screwed if this thing goes longer than I have cash/income. :-(

I read that any loans packaged and insured in a way as to be compatible with Fannie/Freddie guideline (which includes conventional, not just FHA) would qualify. Do you have info that says they aren't?

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Originally posted by @Shashi P.:

Originally posted by @Michaela G.:

Originally posted by @Shashi P.:

@Cynthia Brooks I am somewhat excited. I have always thought it was unfair that a bunch of people got into real estate in 2013 timeframe and got houses super cheap and then enjoyed all the appreciation. I was sitting with my money waiting for a crash and the business is also throwing out cash. I want a crash in the real estate market like in stocks - I also deserve an opportunity to get in on the money machine. I understand that affects people on this site. I just want us to acknowledge all the good things that will come from this - wealth will be transferred to people who didn’t get a chance to get in during 2013.

wow! That's a horrible attitude! So, you want everyone to lose, so that you can make money? Sounds just like all of the corrupt people in government today. Who do you think you are, that you deserve to cash out on the backs of all of us who took chances and worked our butts off and bought when you didn't?

You are the same breed that I am. You built your wealth off the backs of the misery and suffering that was the 2008 real estate crash - where investors and normal people alike lost their homes. The banks then put the houses out on market for 30 cents on the dollar in some places. You bought in 2009-2013. You are just the same as I am - you caught the upswing on a different crash than me. But you are the same. I sit now with money and this is my time. Why are you so appalled - this is the cycle right?? Investors = buy low, sell high. Is this the whole game. So yes I am hoping everyone looses their houses so I could do what you all chose to do in 2010 - mercilessly offer 150k for a house that was worth 350-400 just 2 years ago (or were you generous enough to offer 350?) no you weren’t because you are a investor.

Investors are vulture looking for dead carcasses that can someday become racehorses.

The world is so black/white and simple in your view, but it isn’t nearly so. For example, my area (Dallas) didn’t get hit hard at all by the 2008 recession; the houses here barely lost 10%, because they were inexpensive to begin with. Do I deserve to lose property, since I bought mine at realistic values and wasn’t buying from foreclosures? Why or why not?

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@Shashi P.

I’m not sure why you think it’s landlord’s “fault” that they use leverage to buy property - pretty much everyone does. What percentage of all people do you think pay cash for homes they live in or rent?

Having said that, why should a renter who not only had the wherewithal to purchase a home themselves, instead relying on us to do so, but also didn’t have an emergency fund for events like this, and that means somehow that landlords should have their funds drained? I don’t follow that logic... at all.

Looks like 90+% of mortgages will be modified:

https://money.yahoo.com/corona...

My stance at this point is, if a renter can document a job loss or decrease of income/livelihood, I will make a claim with the lender under this, which means I will stop paying on that mortgage (or pay interest only or send several months of payments to the end of the loan, extending the total mortgage timeframe, etc) and I will adjust downward rent for that renter accordingly.

1 Vote

Originally posted by @Jessica Edmond:

Hopefully this will come to fruition...
https://finance.yahoo.com/news...

“The Trump administration is considering a plan to allow homeowners whose income was cut by the coronavirus to delay mortgage payments. Still to be decided is a mechanism for borrowers to catch up.”

Doesn’t sound like it would be useful to landlords who have tenants affected. The landlords are the ones paying the mortgages. And foregoing mortgage payments while interest continues to accrue also isn’t a solution because it’s still punishing landlords.

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Delaying foreclosures doesn’t sound like “relief” for landlords if they didn’t also make mortgage and interest deferred. It just means they won’t start foreclosing on you until after the hiatus.

1 Vote

All Forum Posts by: Paul Doherty

Paul Doherty has started 11 posts and replied 49 times.

Post: Unfair madness! Landlords getting hosed.

Post: Show me the odor!

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments

Post: Coronavirus and late or no rent payments