Buffalo, NY 路 Member since 2017 路 11 posts 路 10 votes
Hey everyone, this is my first post on here. Just looking to confirm my fears that Trump's executive order today did in fact ban evictions across the country through the end of the year? is this what everyone else is hearing too?
the main reason I'm so concerned is I'm currently under contract on a property in New York. The state eviction moratorium is set to lift August 20th and one of the tenants was already in the eviction process pre-covid. The other is starting to get behind and my plan was to evict both once the moratorium lifted and do a full rehab since it's in rough shape. If this moratorium is through the end of the year I might just walk away and cut my loss on the escrow.
It will be interesting to see how this plays out. I expect a court filing first thing monday morning, alleging that Trump overstepped his authority. An injunction will be requested until the Supreme Court rules on the constitutionality of those executive orders.
The only part of his executive that has me concerned, is section 3(a). Trump may attempt to get the head of the CDC and/or HHS to say "Evictions are bad, and evictions could result in a spread of the virus, so therefore none can happen". That would really hurt the housing market, if they try to enforce that. At least the Cares Act had relief for landlords, who could take a deferment without damaging their credit, on a mortgage while they could not do an eviction. And it only applied to government backed mortgages - not hard money loans, private loans, portfolio loans, paid off houses, etc. That's probably thinking too much into it...but you never know. Trump said "Today, I'm directing the [government agency] to make sure renters and homeowners can stay in their homes, so I am protecting people from evictions..." 馃槵 See for yourself at https://twitter.com/WhiteHouse...
--The core of executive order-- Sec. 3. Response to Public Health Risks of Evictions and Foreclosures.
(a) The Secretary of Health and Human Services and the Director of CDC shall consider whether any measures temporarily halting residential evictions of any tenants for failure to pay rent are reasonably necessary to prevent the further spread of COVID-19 from one State or possession into any other State or possession.
(b) The Secretary of the Treasury and the Secretary of Housing and Urban Development shall identify any and all available Federal funds to provide temporary financial assistance to renters and homeowners who, as a result of the financial hardships caused by COVID-19, are struggling to meet their monthly rental or mortgage obligations.
(c) The Secretary of Housing and Urban Development shall take action, as appropriate and consistent with applicable law, to promote the ability of renters and homeowners to avoid eviction or foreclosure resulting from financial hardships caused by COVID-19. Such action may include encouraging and providing assistance to public housing authorities, affordable housing owners, landlords, and recipients of Federal grant funds in minimizing evictions and foreclosures.
(d) In consultation with the Secretary of the Treasury, the Director of FHFA shall review all existing authorities and resources that may be used to prevent evictions and foreclosures for renters and homeowners resulting from hardships caused by COVID-19.
Here's Trump's actual executive order - https://www.whitehouse.gov/presidential-actions/executive-order-fighting-spread-covid-19-providing-assistance-renters-homeowners/
I read it twice, and I'm reading it as "evictions and foreclosures are bad, we need to stop or reduce them, and I encourage government agencies to do what you can to give extra funds to renters & homeowners, and do what you can within the law to stop evictions and foreclosures". So ... he's not saying "stop all evictions" per se. But I can see Fannie Mae or Freddie Mac delaying any foreclosures and/or evictions for a while - but that's IF they decide to do something. My only concern is the obscure section 3(a) language he inserted -- they would be dumb to stop all evictions, for all types of non-payment of rent situations / mortgages / properties
Hey everyone, this is my first post on here. Just looking to confirm my fears that Trump's executive order today did in fact ban evictions across the country through the end of the year? is this what everyone else is hearing too?
the main reason I'm so concerned is I'm currently under contract on a property in New York. The state eviction moratorium is set to lift August 20th and one of the tenants was already in the eviction process pre-covid. The other is starting to get behind and my plan was to evict both once the moratorium lifted and do a full rehab since it's in rough shape. If this moratorium is through the end of the year I might just walk away and cut my loss on the escrow.
Hey everyone, this is my first post on here. Just looking to confirm my fears that Trump's executive order today did in fact ban evictions across the country through the end of the year? is this what everyone else is hearing too?
the main reason I'm so concerned is I'm currently under contract on a property in New York. The state eviction moratorium is set to lift August 20th and one of the tenants was already in the eviction process pre-covid. The other is starting to get behind and my plan was to evict both once the moratorium lifted and do a full rehab since it's in rough shape. If this moratorium is through the end of the year I might just walk away and cut my loss on the escrow.
I read the EO. I didn't see anything that mandated stopping evictions. It simply gives a couple of Depts the ability to have the discussion. And it has to be COVID-19 related. Typical evictions are not part of it. For instance I have one tenant who didn't want to pay for August, who tried bringing up COVID-19 but they are still working. I said "Sure, you can claim all you want but it doesn't apply, you're still working and if you don't pay your rent I'll immediately evict you". Check arrived the next morning.
John,you are correct my friend. I did read he has extended the eviction moratorium through December 15 but it also states it has to be Covid 19 related馃
It will be interesting to see how this plays out. I expect a court filing first thing monday morning, alleging that Trump overstepped his authority. An injunction will be requested until the Supreme Court rules on the constitutionality of those executive orders.
The upshot of this pandemic is it will change or lay waste to the landlords who sit on their rights and make better screeners of the ones who stick around.
I have been at 100% since this began and I never felt the need to give free rent for the sake of free rent.
All those landlords who gave free rent starting in April introduced a new level of risk to their business model. What are they doing now- still free? Thought this thing would be over by May?
I am waiting for NJ's 2nd wave and hoarding cash.
Run your business like a business- and by that I mean, pretend you have investors to answer to. Free rent, free rides and crappy vetting would not sit well with investors.