Covid bail out, who is bailing the landlords out?

43 Replies

Simply because investment carries risk. The restaurant and entertainment business is shutting down left & right. You can't bail out everyone.  

You put yourself into the wonderful world of being a REI. Navigating the downturns is what makes a good REI. People on this forum started complaining the first month that they couldn't survive with no rent. You shouldn't be a landlord if you don't have a single month in reserve. Remember leverage cuts both ways. It boosts your returns and also can kill you in a downturn.

This whole thing is overblown IMO. You see a new BS article Out of a 50 unit portfolio I had 0 evictions. How you manage your rentals matter. If you placed decent tenants, they will work with you if you are reasonable.  

What a bunch of bull, especially your comments jay h, you should have reserves, what about the constitution. Since when do we suspend a signed legal document, and give deadbeats even more protection. Both dems and republicans should be ashamed, stall the economy and then play politics with regular people whos lives they disrupted. And know just because Nancy Donald want to play polotics before the election, we have too suffer. And the so called BP expert comes out with the lame, you should of had reserves in case of a black swan event. Ya and if we had a govt. watching out for us maybe the country who hid the virus and now pays politicians kids influence money, could pay for the disruption they caused. But i know, its just russia trying to influence an election, aint that right Mr Schiff.

@Maricela Chavez

I think our lawmakers figure we can take deferment on our payments from our lenders, but my issue with that is I figure the lender would not be as willing to do future business with us. Like a stain on your file with that lender, and we are going to need to consistently get new loans to continue to grow.

@Maricela Chavez ok i have one 3 faimly all are not paying in the hole about 10 grand . Went in to forbearance should be good till late next year so if i have to will not renew lease and just sell to get out.

My question is even if you go evictions route if tenant doesn't have money how do you get you money anyway

@Maricela Chavez Yes, what a terrible situation. And with the news and information changing daily. I’m in Michigan, and our Governor set aside 50Mil for landlords/renters to pay past due amounts. Landlords must agree to waive late fees and take a 10% discount.

It’s called EDP Emergency Diversion Program. And they are paying any rents from March to current, to help landlords and tenants. I’m not 100% but the max amount is $3800 per household .

I also think the gov took this money from Cares act funds . Maybe your state has a similar program.

@Maricela Chavez

Hi Maricela,

Have them sign the form OMB Control No. 0920-1303. There are rather strict guidelines that they must follow in order to utilize the COVID excuse.

It clearly states:

-They must have experienced a significant loss of income due to Covid

-They have tried all other firms of government assistance

-They have made efforts to at least Make partial rent payments

-the landlord has the right to request full payment if outstanding rent (with interest and applied late fees) when the deadline has passed

-They can still be evicted for reasons outside of COVID

-By signing the form they understand that any misleading statements or omissions may result in criminal and civil actions for fines, penalties, damages, or imprisonment.

I think if you demand that they sign this, you will see some action on their part.

Good luck

Doug

@Joel Florian wow Joel now this has really peaked my interest. When the rule was passed did anyone consider the small investors?

Seek ANY and all help you can as the landlord...EIDL, PPP, assistance from government agencies on your tenants behalf, etc.

Originally posted by @Maricela Chavez :

Walt Philip, if they add it to the back of the loan, then I'm the one getting the screws, since I'm the one paying the mortgage.

Adding it to the back of the loan gives breathing room for landlords with little reserves. It's not a free ride for LL, but wouldn't screw us unless trying to refi or buy now.

 

Originally posted by @Syed H. :

Simply because investment carries risk. The restaurant and entertainment business is shutting down left & right. You can't bail out everyone.  

You put yourself into the wonderful world of being a REI. Navigating the downturns is what makes a good REI. People on this forum started complaining the first month that they couldn't survive with no rent. You shouldn't be a landlord if you don't have a single month in reserve. Remember leverage cuts both ways. It boosts your returns and also can kill you in a downturn.

This whole thing is overblown IMO. You see a new BS article Out of a 50 unit portfolio I had 0 evictions. How you manage your rentals matter. If you placed decent tenants, they will work with you if you are reasonable.  

 This deserves all of the up votes.


Originally posted by @Jay Hinrichs :

I know on owner occ loans there are forbearance that don't affect your credit supposedly. 

It may not show up as a direct hit to your credit score. However... courtesty of Fannie Mae servicing guidelines...

https://servicing-guide.fannie...

Forbearance is being reported as mortgage delinquency, which means it is still on your record somewhere and will be for the foreseeable future. Hard to imagine lenders etc won't factor it in if you apply for a mortgage or refinance down the road.

 

 

Originally posted by @Matthew Jordan :

Yeah it's really crappy that we've sent over $2 trillion to large companies as "stimulus". Could've just literally given everybody money to pay their bills including rent.

 Giving people money doesn't mean they will pay their bills like rent. Most people got stimulus money and unemployment, yet some still refused to pay rent. Money needs to go to landlords as a voucher like Section 8. You can't trust dishonest people to give the money to their landlords. It is no different than EBT (food stamps). The EBT card can only be used to buy food. They don't force grocery stores to give away food for free.

"Covid bail out, who is bailing the landlords out?"

I think Biden will.  Unfortunately, he's promised to bail out every state's public employee retirement systems first.

And that'll break all the printing presses.

Originally posted by @Douglas Holden :

@Maricela Chavez

Hi Maricela,

Have them sign the form OMB Control No. 0920-1303. There are rather strict guidelines that they must follow in order to utilize the COVID excuse.

It clearly states:

-They must have experienced a significant loss of income due to Covid

-They have tried all other firms of government assistance

-They have made efforts to at least Make partial rent payments

-the landlord has the right to request full payment if outstanding rent (with interest and applied late fees) when the deadline has passed

-They can still be evicted for reasons outside of COVID

-By signing the form they understand that any misleading statements or omissions may result in criminal and civil actions for fines, penalties, damages, or imprisonment.

I think if you demand that they sign this, you will see some action on their part.

Good luck

Doug

 Exactly and the tenant needs to provide the landlord this self certification under risk of penalty of perjury. A tenant can't just say "COVID". They need to provide the certification. I am not even sure a landlord is legally required to request it, so if they don't provide it, I would just proceed with eviction.

@Maricela Chavez I recommend talking to your bank or credit union that your mortgage is with. They may be able to defer all or parts of your mortgage for a few months. It may not solve all the problems, but could give you a little breathing room for a few months. 

@Maricela Chavez

sorry to hear that, try to contact your mortgage company and explain the situation. I now there are a lot of banks offer to waive up to three months payments. It is a shame that governments are doing this to Property investors an landlords, we have families to support also. Good luck.

Neither banks or mortgage companies are waiving payments.  They may delay them but they are not being waived.  The government offer of forbearance is a trash program.  The government is stealing private property through these moratoriums.  Landlords get zero compensation in return for allowing non-paying tenants to stay in a property.  Why can you not go into a store and take what ever you want with penalty?  Landlords are just an easy target with no effective legislative/political representation.  As unbelievable as it is you have other investor on this very forum commenting it is okay for the government theft of private property to continue because it does not yet affect them.  I know smaller investors with limited properties not able to afford tenants living in their property for free.  If this continues, how long before many more tenants say I do not have to pat rent so why should I?  Keep in mind there are regions and even national proposals to prevent tenant eviction records and nonpayment of rent history from being reported. 

Better wake up.