All Forum Posts by: Jennifer Harper

With this being an unprecedented event, everyone's opinion is an educated guess at best.  

The biggest factors that are and will effect the housing market over the next few months to a year are unemployment, lender liquidity and state moratoriums on evictions/foreclosures.  What makes predictions so difficult is how these factors will be handled by the industries, the government and the people.  So there are too many if, ands and buts for anyone to know for sure.  Whoever's prediction ends up rights will have less to do with the level of intelligence and more to do with the fact that even a broken clock is right twice a day :)  But, here's my predictions anyway.  

Real Estate sales will definitely slow down for the next ~10 months while employers evaluate how to get businesses back to capacity, slowly hire back employees and customers/clients slowly start to trust the economy enough to start spending again.  During this time government/investors/lenders will have to re-define underwriting guidelines and the rate/risk relationship to allow for Buyer's to be willing & able to purchase.  Depending on what happens there will effect the amount of demand.  Because were in such a hot market pre-Covid19 I don't foresee a huge decline in prices, but rather less demand/competition which may result in longer days on market and slight decrease (or at the very least less increase) in prices.  Now this is assuming Lenders will still have reasonable products available for Buyers - see comments above).  

Given the uncertainty there will likely be alot of adjustments in policies, rates, underwriting guidelines, consumer confidence, etc. and people, governments and industries struggle to find what works best to solve problems and to solve the problems that the solution to their problems unexpectedly created, there may be more volatility in the real estate industry than usual.  

With all that said, I believe by 2022 things should be back to "normal"  so long as some new unforeseen, unrepresented event doesn't occur.

@Bob Prisco I just called HUD with the same question. The Rep that answered didn't even know HUD did that today. I asked her the same exact question because my client/family member that purchased a fourplex will have that issue. It's hard enough collecting rent from them when eviction is an option. He only has funds to pay a mortgage 1 time then screwed unless Mortgage companies are mandated to postpone/forgive mortgage payments. Even then the owner/investors take a hit because you will still be out the money for the month(s) you didn't/can't collect rent. Yes it's true they cannot foreclose but what is to stop them from reporting late payments, charging the late fees/penalties, etc. This is a rule that has not been thought all the way through. It should not fall on the shoulders of property owners to fund the poor it should be all of society (government funds). I think all Investors should be making that call to HUD to bring to their attention.

If there is a moratorium on evictions then it better be accompanied by a moratorium on lenders to restrict late payment reporting and penalties on mortgage payments.  Not all Landlords are wealthy.

*** Update**.  The friend rent check appeared in the mailbox today (without the late fee)  He (owner) is thinking of just avoiding vacancy/eviction hassles and see if friend will sign a new lease in their name.  Is that smart?  Since it came in the friend's name as return address we believe this is the first time this person is paying rent.

Either the tenant on the Rental Agreement (or the friend?) has been paying rent for many months after the purchase (about 8 months).  March rent not paid and texted [ tenant on Rental Agreement] asking about it and they texted back they don't live there.  There friend lives there now and should've paid.  Asked for friend's name - they texted a name back.  Asked for friends phone # radio silence since then.  

Asking for a friend...

The Tenant on the Rental Agreement Informed they moved out their friend is there. Either way no-one paid rent that was due 9 days ago. Is the friend who lives there a squatter?  Or do we need to evict as if a tenant?  What is the best course of action.  The tenant was inherited when the building was purchased.  Do not have ID, SS# or anything like that.  Just a simple 1 page rental agreement where no security deposit was taken, just a small cleaning fee.

Thanks for the information.  Agent Safety is Important.   Hope the Agent is found is good health.