BREAKING: HUD to suspend all Evictions & Foreclosures thru April

Mortgage Payment Suspension
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BREAKING: HUD to suspend all Evictions & Foreclosures thru April

Mindy JensenPro Member
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
6y
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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  • JR Rios
    Member since 2019 · 5 posts · 0 votes
    6y

    Seems like it’s only for single family homes and owners being evicted for not paying morgage after foreclosure. Does not seem to apply to tenants. Also does not apply to multi unit apts. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    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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  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Mike Dymski:

    A lot of the eviction courts are closed or closing anyway due to social distancing, school closures, etc.

    Mike on the foreclosure side of this.. if your in foreclosure now means you stopped paying payments 8 to 24  months ago.

    so cant blame this event on that..  I have a commercial loan that goes to sale in June.. ( we are the bene) so will be interesting to see how that plays out..  

    I think there is some irrational thoughts on BP that you can go from missing a payment to foreclosure in a nano second.. that simply does not happen.. its a long and slow process in MOST jurisdictions.. some states its quite fast  MO  GA  TX MS  can all be done in 90 days.. 

    I just have to think the mortgage industry though simply does not want a repeat of 08 to 2011 and will be far more proactive if they see a huge spike in non pay or late pays. 

    I have a partner in one of our long term land holds that works for an analytical company that stress tests larger mortgage investors pool of loans you know the guys buying 1 b a month of loans.. they always want to know where the stress is .. will check in with him and post what he has to say.. 

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  • Antonio CuccinielloPro Member
    Investor · Austin, TX · Member since 2016 · 531 posts · 310 votes
    6y

    Does this not apply to small multifamily owners? I own a Triplex, my tenants likely won't be able to pay rent, how am I going to pay the mortgage?

    732-402-6988
    0Reply
  • Mark Horn
    Member since 2018 · 23 posts · 22 votes
    6y

    @Antonio Cucciniello As posted above, I believe we may have access to a Small Business Disaster Loan if it comes to it.  

    1Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y
    Originally posted by @Mindy Jensen:

    @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? 

    To answer your question, this new directive to HUD wouldn't affect you at all. It's only suspending evictions at properties that are owned by HUD.

    In my area, HUD-owned properties are usually Housing Authority "projects" (low income apartment complexes).

    So while many cities are implementing similar moratoriums on evictions, this announcement from Trump will likely have little/no effect on us landlords.

    Here’s another story on it with some more detailed info: Business Insider: HUD is suspending evictions and foreclosures for people living on its properties amid the coronavirus pandemic

    2Reply
  • Mark Horn
    Member since 2018 · 23 posts · 22 votes
    6y

    @Kyle J. Have you seen anything that confirms this would not also apply to anyone receiving a HUD subsidy? I.e. Section 8 voucher?

    0Reply
  • David FloydPro Member
    Rental Property Investor · Titusville, FL · Member since 2018 · 28 posts · 11 votes
    6y
    Originally posted by @Micah McCombs:

    @David Floyd

    What county in Florida if I may ask? Brevard

    0Reply
  • Kyle J.
    Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    6y
    Originally posted by @Mark Horn:

    @Kyle J. Have you seen anything that confirms this would not also apply to anyone receiving a HUD subsidy? I.e. Section 8 voucher?

    Hey Mark, if you read that article I linked to, it says it only applies to HUD-owned properties and not to other renters. (I'm just referring to the suspension on evictions and not to the suspension on foreclosures which also applies to FHA-insured mortgages.)

    Anyway, "Section 8" (Housing Choice Voucher) tenants usually live in private (non HUD-owned) homes, so this directive from Trump simply wouldn't apply. Section 8 is just a program of HUD, but HUD doesn't own the homes that the tenants live in. HUD is basically just the payer of the rent (or a portion of the rent) to the landlord.

    But it's kind of a moot point because if HUD is still making their payments (and at this point there's no indication they won't be), then hopefully you won't have a need to evict. However, if there's some other reason to evict (i.e. tenant doesn't pay their portion of the rent, serious breach of the lease, etc), then this new directive still wouldn't apply, but one of the many eviction moratoriums being enacted in cities across the country might.

    0Reply
  • Mindy JensenPro Member
    OP
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    6y

    Thanks for the update, @Kyle J.

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  • Randall Weatherall
    Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
    6y

    White House thought process: push it through, figure it out later.

    0Reply
  • John MorganPro Member
    Rental Property Investor · Grand Prairie, TX · Member since 2018 · 2k+ posts · 2k+ votes
    6y

    I had an eviction hearing four days ago and won in ft worth, TX. I’m now told all evictions are halted as of today. No writ of possession will be issued. I’m basically screwed for two or more months until they figure this out.

    These tenants have been awful and turned my house I spent 50k rehabbing last year into a drug house with a bunch of unauthorized people living in it. The cops show up once a week for domestic violence and what not. The city inspector has warned me multiple times for trash violations. They must have 15 people living in there with all the trash that piles up. The neighbors say they smell marijuana coming from the inside all the time. These people hit the jack pot by getting a couple more months rent free with no eviction thing. Meanwhile us landlords are screwed and will have to eat it. I filed for eviction in feb and it took 3 weeks to get a court case in fr worth. Corona virus didn’t cause these people to stop paying rent.

    4Reply
  • Eddie T.
    Rental Property Investor · NY · Member since 2013 · 844 posts · 350 votes
    6y

    @John Morgan DO not stop until you are able to speak to your local politician to try and get the time lines changed in your county they need to move faster 

    0Reply
  • Lois S.
    Investor · Brentwood, CA · Member since 2013 · 195 posts · 52 votes
    6y

    There's an advocacy page for members of National Apartment Association to send letters to our Congressional reps to urge Congress to enact 4 proposals to help renters and housing providers:

    Check it out.
    Here's the linkhttps://www.naahq.org/advocacy/action-center/advocacy-365


    0Reply
  • NA NA
    Member since 2020 · 11 posts · 6 votes
    6y

    All this government assistance sounds great but I don't think any of it applies to the investor who has obtained conventional loans from Fannie/Freddie, right? 

    0Reply
  • Account Closed
    Member since 2020 · 1 post · 0 votes
    6y

    HUD moratorium aside, many cities have imposed their own eviction moratoriums. I have a crappy subletter who hasn't paid in three months, & he is now using the moratorium as an excuse. It's infuriating.

    0Reply
  • Shenika Fegins
    Member since 2018 · 2 posts · 0 votes
    6y

    I’m in the same boat as Mr. Morgan.  I have been in eviction court since Jan.  Filed the writ, Constable called saying they are not doing any writs until 16 Apr.  I live in San Antonio,TX.  Such is life!

    0Reply
  • George Glass
    Member since 2018 · 2 posts · 0 votes
    6y

    Basically you as a home /property owner, would request a forbearance from your creditor (the mortgage company). They would “defer” your payment in increments of 1-3 months. You would NOT incur penalties (late fees or negative credit reporting). You would STILL be responsible for the missing payments. They stack up. 
    At the end of the term you either make a repayment plan (higher monthly payments or they can add it to the loan term years) to catch up. If you have the cash it’s not worth the hassle though. 

    0Reply
  • Susan O.
    Fresno, CA · Member since 2015 · 552 posts · 181 votes
    6y

    The new laws will impact the housing and rental industry for decades 

    https://www.naahq.org/news-publications/lasting-impacts-covid-19-residents-and-operators
    National Apartment Association 

    0Reply
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