Corona Virus Relief bill - No evictions for a year!

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Corona Virus Relief bill - No evictions for a year!

Patrick McGrath

Rental Property Investor · Westminster, MD · Member since 2014 · 165 posts · 221 votes

New Bill past 10/1 states no evictions or foreclosures for 1 year for non payment as of date of bill.

Thoughts?

https://www.bloomberg.com/news/articles/2020-10-03/house-coronavirus-relief-bill-would-ban-evictions

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

No point in worrying about something that hasn't made it through the senate. If it gets passed we just have to hope that we have good tenants because we screened them as best we could when they moved in.

I just converted another property to Section 8 so that I have as much guaranteed rent coming in as possible.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
No point in worrying about something that hasn't made it through the senate. If it gets passed we just have to hope that we have good tenants because we screened them as best we could when they moved in.
I just converted another property to Section 8 so that I have as much guaranteed rent coming in as possible.
18 Reply
Jill F.
Investor · Akron, OH · Member since 2016 · 2k+ posts · 4k+ votes
6y
I'm worried about it. I bought 26 units in the last 8 months so many of my tenants are "new" to me and were not screened by me.
Additionally, I have a number of tenants that may be at risk for job loss especially if economic conditions deteriorate.

I think we'll see more property abandonment at the very lowest end-- recently I saw an article about a motel (housing of last resort) where the owner abandoned the property and the city (orlando) water was being cut off.

4 Reply
James Strawser
Sarasota FL · Member since 2018 · 22 posts · 6 votes
6y
@John Underwood I am thinking about converting my MFH into section 8 any advice or tips? DM please
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6y
Originally posted by @James Strawser:
@John Underwood I am thinking about converting my MFH into section 8 any advice or tips? DM please

Its not that difficult. Just find people with vouchers and screen them like anyone else.
5 Reply
Account Closed
Specialist · OverTheRainbow · Member since 2020 · 607 posts · 909 votes
6y
Originally posted by @Patrick McGrath:
New Bill past 10/1 states no evictions or foreclosures for 1 year for non payment as of date of bill.
Thoughts?
https://www.bloomberg.com/news/articles/2020-10-03/house-coronavirus-relief-bill-would-ban-evictions
I would be shocked! Shocked, I say, if the Senate passed it and even more shocked if the President signed it.
That would be a good time to sell everything and start buying in Uruguay where it is only Socialist, not whatever this country would become.
4 Reply
Zachary Ray
Investor · Durham · Member since 2017 · 589 posts · 251 votes
6y
@James Strawser John is right. All you have to do is market your property as such and accept the paperwork. The housing authority will conduct an inspection on your unit and your good to go.
3 Reply
Jeremy Marek
Evergreen Park, IL · Member since 2016 · 138 posts · 59 votes
6y
Now is the time to worry about it, before it becomes law... Too many small time landlords have a laxed attitude on major legislation and aren't contacting their local representative to explain their hardship.
8 Reply
Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
6y
@James Strawser
Only difference is to advertise that you accept sec 8, and go thru the sec 8 paperwork and inspection
2 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
Now is the time for people to do something. I can't see how any rational person thinks people can live for free for a year while the landlord pays their bills.
9 Reply
James Strawser
Sarasota FL · Member since 2018 · 22 posts · 6 votes
6y
@Zachary Ray Thank you Zach, I appreciate it. I ha e a duplex and think the one unit could be approved for section 8.
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James Strawser
Sarasota FL · Member since 2018 · 22 posts · 6 votes
6y
@Matt M. Thank you Matt, I will into it with my local county.
1 Reply
Robert A. ColomaPro Member
Member since 2020 · 32 posts · 26 votes
6y
@Matt M.
How do you get approval for section 8 to rent my property ?
Advise
Thank you!
0 Reply
Matt M.
Specialist · Easton, PA · Member since 2018 · 1k+ posts · 2k+ votes
6y
@Robert A. Coloma
In my area, tenant starts the process with their case worker. Then there’s paperwork to fill out, and an inspection. Lease gets signed at the sec 8 office with case worker.
1 Reply
Robert A. ColomaPro Member
Member since 2020 · 32 posts · 26 votes
6y
@ Matt M.
Thank you!
1 Reply
Marcus Johnson
Investor · Saint Paul, MN · Member since 2015 · 663 posts · 512 votes
6y
@Patrick McGrath
Is that only true for Fannie Mae and Freddie Mac loans? So if you own the home out right does that even matter?
0 Reply
Erica D Avila
Specialist · San Diego, CA · Member since 2020 · 4 posts · 1 vote
6y
@James Strawser add the phrases "Section 8 OK" or "Section 8 Welcome" to your advertisements of the property. You can also list it on GoSection8.com
1 Reply
Erica D Avila
Specialist · San Diego, CA · Member since 2020 · 4 posts · 1 vote
6y
@Patrick McGrath Question: Will the bank mortgages still be eligible for relief as well?
0 Reply
JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y
A) I don't see any real details in who/what would be included;
B) I don't see it surviving a legal challenge in the courts, as it would amount to an abrogation of due process;
C) It doesn't appear to have any effect on evictions outside of non-payment. If you have anyone/everyone on M2M, then you are evicting because you want your nephew to live there or you want to turn it into AirBnB or you want to use it as a part-time love shack. If you are on a long-term lease then you have to wait a little longer to avail yourself of those options.
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6 Reply
Jacob Pereira
Real Estate Agent · Austin, TX · Member since 2014 · 636 posts · 486 votes
6y
One of the first thing the article you posted states is that this bill is unlikely to pass. Right before elections there's always a bunch of "aspirational" legislation that is purely to galvanize the base.
2 Reply
Angela Flowers
Bedford Hts., OH · Member since 2020 · 3 posts · 2 votes
6y
@Jill F. I am very interested to know your techniques for scaling so rapidly. Please DM me if you don’t mind sharing. Kudos to you and continued success. PS I hope to be like you when I grow up..lol
1 Reply
Calvin Lin
Investor · Raleigh, NC · Member since 2015 · 81 posts · 210 votes
6y
I am someone who usually think of worst case scenario so what happens if this happens on Election Day: Dems take both the WH and the Senate as well as keeping the House, then the bill gets passed and no eviction nation-wide during 2021. Court challenge is delayed (let say for many months) or even losing the case in the initial rounds (lower court) and appeals take many months and again no eviction in 2021. More and more tenants figure that it is worth skipping paying rent for a year even with ding in their credit score because hey who knows maybe same thing in will happen in 2022.

This is not an unplausible scenario and perhaps indeed shorter-term leases make sense at this point going forward in case you can still evict for non-renewals.
3 Reply
Patrick McGrath
OP
Rental Property Investor · Westminster, MD · Member since 2014 · 165 posts · 221 votes
6y
@Matt M.
Are there certain requirements that are outside of what you would have for a standard non voucher rental?
0 Reply
Patrick McGrath
OP
Rental Property Investor · Westminster, MD · Member since 2014 · 165 posts · 221 votes
6y
@Marcus Johnson
That is what it looks like based on the article, all my properties are Fannie Freddie so I'm a little concerned.
1 Reply
Nate Sanow
Investor & Agent · Tulsa, OK · Member since 2016 · 1k+ posts · 1k+ votes
6y
@Patrick McGrath
This weighs on my mind as someone on just his third owned investment opportunity (others non-owned involvement too like wholesaling etc) and a desire and ability to scale quickly on BRRRR opportunities...
My questions have to do with mixed sources stating either 1. The ban is for ALL evictions or 2. The ban is on any federally backed loans... if it is number 2. Then I wonder if moving loans around into other product types bears any merit? Even if taking a hit on interest rate.
1 Reply
Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
6y
Originally posted by @Nate Sanow:
@Patrick McGrath
This weighs on my mind as someone on just his third owned investment opportunity (others non-owned involvement too like wholesaling etc) and a desire and ability to scale quickly on BRRRR opportunities...
My questions have to do with mixed sources stating either 1. The ban is for ALL evictions or 2. The ban is on any federally backed loans... if it is number 2. Then I wonder if moving loans around into other product types bears any merit? Even if taking a hit on interest rate.

There are a lot of cases where you can evict. check your local rules, but some exceptions include violation of the lease for anything other than non-payment of rent, and the CDC ban only includes those who have lost work because of covid. If they are working the same hours as before and not paying rent, you can evict.
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