How long can evictions be banned? (Coronavirus)

How long can evictions be banned? (Coronavirus)

Chicago, IL · Member since 2016 · 22 posts · 11 votes

This is a rhetorical question, because I know we don't really know, but... I am concerned mainly because the relief being offered to landlords (mortgage forbearance) is not beneficial enough when compared to what tenants receive.  What I mean by that is: if a landlord gets forbearance on a mortgage, all their payments pile up while they aren't paying them (they don't get forgiven, or even paused).  The landlord has to make back those payments (get back on track) eventually.  If you are a landlord and get behind by 3 months or more, it may require a monster cash payment to get back on track.  And if you don't eventually the banks can foreclose on you.  Now, compare this to a tenant, who is told they can't be evicted.  If they don't pay rent for 3 months (or more, who knows how long??), in theory they will eventually have to make all the back payments, but in reality, they could simply just leave the house once they are told that evictions are starting.  The landlord likely won't have any recourse and just lost those months of rent.  In summary, the threat of eventual foreclosure for the landlord is a much bigger consequence than the eventual eviction for the tenant, which may simply just turn into a quick move-out when forced to (maybe simply with the loss of a security deposit).   So this makes me nervous as a landlord.  The longer this goes one, landlords get more and more in the hole, whereas tenants just get a bigger reason to move-out and dash at the end.

Curious regarding thoughts on this, and if you even see the forbearance as a big benefit, knowing you have a stack of payments waiting for you on the back end of it...

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Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
6y

Many areas aren't processing evictions because their courthouses are closed for health reasons. Unfortunately I think the wave hasn't hit in many areas and May is going to be worse than April.

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  • Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
    6y

    There are enough landlords who would send the debt collectors out for tenants that the lawmakers would likely pass another stimulus before it gets to that.

  • Chicago, IL · Member since 2016 · 22 posts · 11 votes
    6y

    Thanks, Aaron.  I wonder if one option would be to implement another stimulus (checks to tenants) but also allow evictions.  To me, this evens the tables a bit.  Because there is nothing stopping tenants from keeping the checks and spending them on other things, meanwhile not paying rent because they don't have to.

  • Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
    6y

    @Jeb Shookman

    Evictions won’t be started up again until it is save (medically) to be out and about.

  • Chicago, IL · Member since 2016 · 22 posts · 11 votes
    6y

    Thanks, @Max T., yeah that makes sense.  Then, it would really help if the banks offered a true "pause" on mortgage payments, meaning: you just stop payments for a month or two, and then just start them again.  Not this situation where you build up a stock of back payments that you need to catch up on later....  :(

  • Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
    6y

    Many areas aren't processing evictions because their courthouses are closed for health reasons. Unfortunately I think the wave hasn't hit in many areas and May is going to be worse than April.

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