Knoxville, TN · Member since 2013 · 62 posts · 216 votes
Forgive me if this has been posted before. A search didn't find anything. As you probably know, the Democrats in the House passed the Hereos Act, A part of this bill calls for a Federal Ban on evictions of any residential property for non payment of rent. This is extended for 12 month after the pandemic is over. No recourse for landlords. I rely on my properties (which are paid for) for my living expenses. Also in there is a provision stating the back rent will be forgivable. If the Senate passes this bill, I may be without income for a loooong time. Does anyone know any more about this?
Forgive me if this has been posted before. A search didn't find anything. As you probably know, the Democrats in the House passed the Hereos Act, A part of this bill calls for a Federal Ban on evictions of any residential property for non payment of rent. This is extended for 12 month after the pandemic is over. No recourse for landlords. I rely on my properties (which are paid for) for my living expenses. Also in there is a provision stating the back rent will be forgivable. If the Senate passes this bill, I may be without income for a loooong time. Does anyone know any more about this?
You ever notice how so many bad laws, acts, groups and movements are titled in such a way that it is considered shameful to oppose them?
I don’t have anything against Tenant friendly states Nor politically run blue states. But what’s right is right. I can’t go into a grocery store and get free food nor drinks can I? So why must I give up my investments for free?? I’m human too. Don’t I Matter? Don’t I pay taxes? Don’t I work hard? Don’t they think maybe I’ve taken a hit too? Aren’t we all created equal??
@Mary M. if interest rates are lower in nice areas would that violate redlining laws?
As for the bill in the current world, it's DOA and is going nowhere with that wording. It would be devastating to landlords which means in the long term it would be devastating to renters unless the government takes over landlording (which would be a nightmare as with almost everything they take over).
However, come November it's hard to guess what might pass next January. I'm hoping there's enough landlords in Congress to keep this from killing the rental industry.
Why is everything argued as either/or or extreme vs extreme?? That is not the world I live in and doubt its yours either.
As for interest - my guess is less risky investments get better funding? There are many factors including borrowers credit, type of investment etc.
Not sure what you're trying to say. I don't think any reasonable landlord believes that this bill is a positive for their investments or the future of real estate investing.
One thing is that I don’t see here is that even thought it’s DOA now, if the Dems sweep in November, it’s definitely in play. PLUS, if who knows who Biden’s running mate will be - he’s pretty old in a high stress job, so that person would be really important.
I’m not changing my strategy, but I’m a bit scared about what happens in a blue sweep.
Rental Property Investor · Henrico, VA · Member since 2019 · 265 posts · 155 votes
6y
I pasted the relevant text on the moratorium on evictions from the bill in a post above. Here is the preamble to it providing justification for context. Thought some might find it interesting for the discussion.
SEC. 110203. PROTECTING RENTERS AND HOMEOWNERS
FROM EVICTIONS AND FORECLOSURES. (a) EVICTION MORATORIUM.—The CARES Act is amended by striking section 4024 (15 U.S.C. 9058; Public Law 116-136; 134 Stat. 492) and inserting the following new section: ‘‘SEC. 4024. TEMPORARY MORATORIUM ON EVICTION FILINGS. ‘‘(a) CONGRESSIONAL FINDINGS.—The Congress finds that— ‘‘(1) according to the 2018 American Community Survey, 36 percent of households in the United States—more than 43 million households—are renters; ‘‘(2) in 2019 alone, renters in the United States paid $512 billion in rent; ‘‘(3) according to the Joint Center for Housing Studies of Harvard University, 20.8 million renters in the United States spent more than 30 percent of their incomes on housing in 2018 and 10.9 million renters spent more than 50 percent of their incomes on housing in the same year; ‘‘(4) according to data from the Department of Labor, more than 30 million people have filed for unemployment since the COVID-19 pandemic began; ‘‘(5) the impacts of the spread of COVID-19, which is now considered a global pandemic, are expected to negatively impact the incomes of potentially millions of renter households, making it difficult for them to pay their rent on time; and ‘‘(6) evictions in the current environment would increase homelessness and housing instability which would be counterproductive towards the public health goals of keeping individuals in their homes to the greatest extent possible.
Chicago, IL · Member since 2020 · 59 posts · 19 votes
6y
@JR C. If this is true it is rather ridiculous. The government wants to control our business? I see. Well keep this in mind when it is time to vote. I’ll leave it at that.
@JR C. If this is true it is rather ridiculous. The government wants to control our business? I see. Well keep this in mind when it is time to vote. I’ll leave it at that.
As it so happens, in most areas renters out-vote landlords by a significant margin.
I'm reminded of the parable of the three animals trapped in a cave, two wolves and one sheep, voting on what to have for dinner.
Chicago, IL · Member since 2020 · 59 posts · 19 votes
6y
@Alvin Sylvain, Good one :-). You're probably right. I mean I am all for what's fair for all. We still need to pay mortgages and other fees HOA., etc. Loan to Landlords 🤔 well we will see about that. How will we recover our loses?
Investor · Singapore · Member since 2013 · 1k+ posts · 3k+ votes
6y
@Ariel Kumpinsky In a more sane country Biden would be considered a conservative. So I doubt he will upset the apple cart of corporate control that we know and love so well. I wouldnt worry so much. The laws that matter come local ordinances. Even in California broaf based rent control was rejected handily at the polls.
Why is everything argued as either/or or extreme vs extreme?? That is not the world I live in and doubt its yours either.
Have you heard of Venezuela? It is part of our world and wracked by poverty in the extreme thanks to adopting socialist ideology in the extreme; including government take-over of large portions of the economy, "for the People" of course.
In 1950 Venezuela was the 4th wealthiest nation per capita in the world. Today, their biggest export is emigrants trying to escape. Central and South America is littered with Venezuelan ex-pats.
I know sometimes it's crazy to argue "extremes" but they do happen, and many of us would very much like to avoid quite a few of those extremes. Extremes are unlikely realities that we'd like to see stay as unlikely as we can make them, but unfortunately, not impossible.
@Alvin Sylvain the US is not socialist. We are a democratic republic and a capitalist society. We are not Venezuela.
Venezuela wasn't socialist either in 1950.
Don't think it can't happen here. Unless we stay vigilant, it most certainly can.
Not to detract from whatever your original point was -- I generally find your posts to be both thoughtful and thought-provoking. I don't always agree with everything, but who ever agrees with everything.
My only point was, and is, to quote a famous quotation, "Extremism in the defense of liberty is no vice."
Congressional Democrats want to take away our liberty, although they probably don't think of it in such, "extreme" terms. As the bill is currently written, it's not likely to pass. However it will be amended into something probably a little less horrible, but still bad, and will probably pass. Congress wants to use this crisis to look good to the voters. I'm sure Hugo Chavez felt the same.
Rental Property Investor · The Vampire State · Member since 2013 · 2k+ posts · 2k+ votes
6y
Originally posted by @Account Closed:
@Ariel Kumpinsky In a more sane country Biden would be considered a conservative. So I doubt he will upset the apple cart of corporate control that we know and love so well. I wouldnt worry so much. The laws that matter come local ordinances. Even in California broaf based rent control was rejected handily at the polls.
That's novel that you get to have input on such ideas. Here in NY, the governor circumvents the checks & balances and just signs an executive order (as of today, he has written 343 during his tenure). There are lawsuits filed, but everyone agrees those actions won't have an effect for at least two years by the time the certain numerous appeals are played out. By then the damage has long since been done. People are out of business. Scary stuff.
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
6y
Ok making the classic mistake of responding with only reading the summaries not the bill :)
But if the summaries are accurate it seems that portfolio/commercial loans are exempt from the requirements. These loans aren’t too bad, though slightly shorter AM, slightly higher rate and of course adjustments. But they are manageable...and in comparison to those requirements....
Ironically a bill like this would likely drive lots of people OUT of the Fannie/Freddie world and into the private banking sector. And the big guys don’t use Fannie/Freddie at all...
Am I off here? Biggest danger of any sweeping new law are the unintended consequences
Chicago, IL · Member since 2020 · 59 posts · 19 votes
6y
@JR C. In response to your original post. Say we cannot longer discriminate on basis of credit, collections, and prior evictions, it is still our property. Possible ways to tackle this issue: Require proof of savings that guarantees rent payments. That’s not looking at their credit. Not choosing a tenant to quick until you have several applicant. Consider asking for a few upfront payments.
Is it legal to have tenant open an escrow account that needs to maintain a minimum balance for rent?
Knoxville, TN · Member since 2013 · 62 posts · 216 votes
6y
I would have to go back and check the exact wording but the “spirit”of the bill was to imply there could be no financial criteria in the decision making process to deny a tenant.
Rental Property Investor · Member since 2019 · 304 posts · 462 votes
6y
The probability of the Heroes Act becoming law is slim to none. The Democrats are virtue signalling again. Trump will never sign it and niether house can get a veto proof majority. Nothing to worry about until November. If the democrats somehow manage to get large majorities in both houses, and Trump loses the election, then it is a totally different story.
Real Estate Agent · Cleveland OH · Member since 2015 · 213 posts · 275 votes
6y
I ended up a landlord by default when my husband died during the 2009 crash. I think it is time the widows like me start making a issue of being a minority that needs protection. Our government looks unfavorable on "lazy" young widows. I was widowed at 52. My husband was 66 at his death. He received only a handful of social security checks. The government cut the checks off the day after his death. I had to wait till 9 years to apply for my reduced widows benefits. If I make over $16,900 they take back $1.00 for every $2.00 earned. They have cut them off totally more than once. Thank god for an insurance check that allowed me to purchase rental properties. I can not live on my widows benefits, or the combination of widows benefits and 16,900 maximum income allowed by the government. I live off my rental income.
A friend with Cuyahoga County Children's Services told me the value of the benefits provided by HUD/SNAP/Medicare is worth over $50,000 annually. Yet they think a widow like me, should be able to live on $38,500 and I have to provide my own medical insurance.
Today I write my senator and ask for a provision to protect widows. Maybe I can call it the Gramma protection act. This is tongue in cheek. I live comfortably off my rental income, but I am the only young widow I know that did not end up in bankruptcy and foreclosure. I personally know a number of young widows taking care of the elderly for a roof over their heads, who is protecting their interests.
Chicago, IL · Member since 2020 · 59 posts · 19 votes
6y
@JR C. - Hypothetically speaking, day 🤦♂️today I file for bankruptcy and next day go to the bank asking for a new loan. Is the social congress going to take care of me too. I swear these people in politics are so dumb. #realness