I am deeply troubled by the latest HEROES Act and hope that it will not survive in its present form. Section 110203 beginning on page 961 may be one of the biggest land grabs and transfers of wealth in recent memory and looks like it is forcing Mom & Pop landlords to pay to house millions without meaningful recourse.  It also creates a very real risk that mortgage lenders will pull back from the market.  For many areas of the country, the real estate market is strong and is poised to lead a recovery, as long as lenders don't pull back and decimate demand. If lenders pull out, the next Great Recession could easily become the next Great Depression. The HUGE expansion of the definition of a "Covered Dwelling" is problematic and amounts to a seizing of property and an interfering with the right to contract of Mom & Pops landlords.  Under this proposed Act, most of our houses would be considered a "Covered Dwelling," so our renters could quit making payments, without penalty.  If you can't collect rent for a year, you have a cause of action for rent (but no penalties) against an insolvent renter with no assets.  Even if you ruin your ability to borrow more by seeking forbearance, you still have to pay the principal, interest, property taxes, and insurance, and other expenses to your lender, regardless of your ability to collect rent during a time when the government would not let you evict. 

I apologize for going so negative on this one. This just looks too much like a third world country seizing a mine, only this time, it's the US seizing our houses and seriously undermining our ability to keep our promises to repay our lenders by preventing us from renting our houses to people who will pay rent. Many of us have deep reserves and will survive, but a seizure by any other name is still deeply disturbing.  

Some form of the law will likely be passed by Friday.  If the current version strikes you as a bad idea, please consider contacting your representatives.  

Thanks,
Mark