BREAKING: HUD to suspend all Evictions & Foreclosures thru April

BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes

**BREAKING NEWS**

The White House has just announced a directive to HUD to suspend all evictions and foreclosures through the end of April.

This is a breaking news story and we will be updating as this story develops.

https://www.bloomberg.com/news/articles/2020-03-18/trump-says-u-s-will-suspend-hud-foreclosures-and-evictions

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

Originally posted by @Brad Mizer:

I have 44 units in Tennessee that were all acquired in the last six months so I’m new to being a landlord. Are you all saying that when my tenants are late on April 6th and I file eviction papers, even if my case is heard nothing will be done? How am I supposed to pay my banks, insurance, utilities, etc?

You will just dip into your reserve funds that you have set up when you bought this property you should have at least 6 months of operating expenses in reserve to be in this business.. less than that is highly risky ..

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Caleb Brown
Real Estate Agent · Kansas City · Member since 2018 · 4k+ posts · 3k+ votes
6y
That's crazy, thank you!
0 Reply
Charmaine Holden
Member since 2019 · 24 posts · 4 votes
6y
Wow ! 2 options down ... shut the front door Corona, Corona smh.!
0 Reply
Lien VuongBusiness Member
Real Estate Agent · Boston, MA · Member since 2018 · 2k+ posts · 1k+ votes
6y
Oh no!!!
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Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
6y
@Mindy Jensen I wonder if this also means late fees and penalties? Additionally, while this effects most home owners, but any agency loan, I am curious if this will also trickle down to balance sheet lenders as well?
I am glad that if there are eviction moratoriums in place, that the landlord gets relief on their mortgage too, but this is likely contributing to another bad day in the stock market.
1 Reply
Mindy JensenPro Member
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BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
6y
@Evan Polaski, I get where this is coming from. I, too have questions. Does this affect evictions that were already in place? Like, if my tenant stopped paying rent 3 months ago and we're about to get him out, am I now stopped?
I wish there were more guidance in place for this. How are other lease violations handled? If my tenant is selling drugs from his unit, can I evict or does he get a free pass?
I am glad they didn't ONLY declare a moratorium on evictions, but also foreclosures. That's great. And I truly hope that banks can remember 12 years ago and NOT rush to foreclose after the end of April. I know a lot of landlords would want to work with the banks to keep their properties. I hope the banks listen.
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Evan Polaski
Cincinnati, OH · Member since 2020 · 4k+ posts · 3k+ votes
6y
@Mindy Jensen the person in me agrees with you and does not want to see the economy tank and people lose their houses. The capitalist/investor in me says LET THE FORECLOSURES COME!!!!
And as for policy, I get that putting it out there as soon as reasonable is likely best, but I wish they would delay and generally have more details available immediately following any press conference.
2 Reply
Mike D.
Investor · Marion, IA · Member since 2010 · 177 posts · 117 votes
6y
The Foreclosure suspension only applies to single family mortgages backed by the FHA. If you have a private mortgage or a local bank mortgage I guess you're still on your own.
https://www.cbsnews.com/news/t...
In a statement, HUD said the moratorium applies to Federal Housing Administration-insured single-family mortgages for 60 days, as well as Home Equity Conversion mortgages, or reverse mortgages. Secretary Ben Carson said the decision will "provide homeowners with some peace of mind during these trying times."
0 Reply
Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
6y
HUD housing is multifamily complexes that are privately owned and subsidized by the federal government.

So these Federally assisted "Projects" should remain under current ownership vs receivership (which is probably a good thing for the Taxpayers and the Owners).
There are probably a lot of other HUD things this will effect also.

1 Reply
Diane Leikas
Member since 2018 · 4 posts · 5 votes
6y
If rents won't be paid due to this government directive, can property owners delay payment of property taxes?
5 Reply
Rodney Sums
Laveen, AZ · Member since 2016 · 584 posts · 528 votes
6y
I’m curious if people will intentionally defer rent/mortgage payments even while earning income and having the ability to do it whether it is out of fear or just abusing the privilege. It’ll be interesting to learn if this will also require no derogatory credit reporting.
3 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
6y
A lot of the eviction courts are closed or closing anyway due to social distancing, school closures, etc.
2 Reply
Karen MargraveBusiness Member
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Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
6y
I'm sure we're going to have to wait to see how this all shakes out. What will happen with conventional loans, private mortgages, etc. I was listening to some business news reporters today and they were predicting unemployment could shoot to 20%, and we could have depression era challenges, unless drastic amounts of money are poured into the economy to lower income wage earners.
Alot of what happens in the housing market is going to depend on what happens with rates and regulations. Will we return to stated income loans, or ?
Here in CA today the Governor is negotiating with 900 hotels to quarantine the homeless. What happens after the quarantine is over? Do they have tenant rights? Who pays to clean up the hotels and rehab them? CRAZY TIMES!! AGAIN...
2 Reply
Mark Horn
Member since 2018 · 23 posts · 22 votes
6y
Very curious how this plays out. I am in a tough spot. New landlord in MA, 3 unit, had one remaining tenant with an ongoing eviction when I closed. I was able to get an agreement for possession signed by the judge the day after I closed. It extended 5 months with no right to appeal or stay. So as of March 30th, my tenant is supposed to be out. The execution order for possession would be mailed out that day on Monday, at which point I could evict via constable if needed. The tenant is Section 8, and been violating the voucher terms. I took the housing authority to task over this as they had been turning a blind eye. The voucher will now be cut off as of May 1st, unless they appeal. So now potentially I will be unable to finalize the eviction, while also losing the Section 8 voucher payment.

I will follow up as I find out more about the HUD decision and any local rulings in MA.
1 Reply
Rachel H.
San Antonio, TX · Member since 2009 · 3k+ posts · 1k+ votes
6y
I agree with @Mike Dymski. In a lot of municipalities eviction cases (and probably foreclosure cases) are not being heard right now due to the situation. Everyone will have to check with your own locality to see what can and can't be done with evictions and/or foreclosure cases going forward.
Many landlords I know are already preparing and have told their tenants they will forego rent for the next few weeks if need be until things get better and people can get back to work.
Hoping things get better. Hang in there everyone! :)
1 Reply
Calvin Thomas
Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
6y
Only SFH. Not investment property.
0 Reply
Mark Horn
Member since 2018 · 23 posts · 22 votes
6y
https://www.businessinsider.com/hud-halts-evictions-and-foreclosures-coronavirus-2020-3
This appears to say that it applies to HUD owned properties period. So local evictions on non HUD owned or subsidized property can continue. Unsure if this applies to voucher programs or not, but its *some* clarity.

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Account Closed
Property Management · Marietta, GA · Member since 2015 · 45 posts · 25 votes
6y
Actually the suspension is for 60 days. For HUD and Fannie Mae
If you borrow from private mortgage or bank that is not backed by fannie mae you have no relief at this time.

https://www.fanniemae.com/portal/media/corporate-news/2020/covid-homeowner-assistance-options-7000.html

Here are the link from HUD:

https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_042

1 Reply
Tim Bosland
Member since 2020 · 1 post · 0 votes
6y
Wow! that is amazing! I can't believe it! Thanks @Mindy Jensen!
0 Reply
David FloydPro Member
Rental Property Investor · Titusville, FL · Member since 2018 · 27 posts · 11 votes
6y
@Mindy JensenI had one started back in January in Florida and the judge issued the writ of possession but Sheriff called me to say that they could not post it. Luckily she moved out today.
0 Reply
Alvin Mayard
Member since 2020 · 4 posts · 0 votes
6y
Okay, New investor so I could be wrong but this sounds like it allows investors more time to place offers & possibly purchase the house before foreclosure...such a thing true?
0 Reply
Micah McCombs
Member since 2019 · 2 posts · 1 vote
6y
@David Floyd
What county in Florida if I may ask?
0 Reply
Mary M.
Rental Property Investor · Portland OR · Member since 2018 · 2k+ posts · 3k+ votes
6y
Since there has been a state of emergency declared the SBA has loans available for homeowners, biz owners, renters, etc
https://disasterloan.sba.gov/e...

0 Reply
Marlen Weber
Specialist · Plano, TX · Member since 2020 · 2k+ posts · 861 votes
6y
@Mindy Jensen Thank you for sharing this article with us, very helpful.
0 Reply
Scott Hibbert
Denver, CO · Member since 2016 · 52 posts · 42 votes
6y
I received an email from Ally Bank today since I use them for my savings account.
They wrote
"suspended fees at Ally Bank. For the next 120 days, we're waiving fees for overdraft, excessive transactions for savings and money marketing accounts"
"Deferred payments for Ally Auto financing. You can defer your payment for up to 120 days. During this time finance charged will accrue, but you won't be charged any late fees"
"Deferred Ally Home payments. if you're facing financial hardship due to an interruption in your income, we can defer your Ally Home payments for up to 120 days. During this time finance charged will accrue, but you won't be charged any late fees"
I realize this doesn't cover investors who aren't facing hardship but it's a step in the right direction if millions of people might get deferred rent. The snowball has to keep rolling to the next group to keep it all from collapsing. But who knows.
2 Reply
Brad Mizer
Member since 2019 · 1 post · 0 votes
6y
I have 44 units in Tennessee that were all acquired in the last six months so I’m new to being a landlord. Are you all saying that when my tenants are late on April 6th and I file eviction papers, even if my case is heard nothing will be done? How am I supposed to pay my banks, insurance, utilities, etc?
0 Reply

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