September 11th, 2020 12:32 AM by Eric Willner
Radio Show Notes 9/8/20 Tuesday: Tools, Tips, & Techniques About The Current Status of Evictions and Forbearances on The Real Estate Show
By Eric Willner, Host of The Real Estate Show, America’s longest running daily radio show about real estate.
In the Tuesday edition of The Real Estate Show, Eric Willner shares the tools, tips and techniques he and other experts are using in their successful real estate activities. It’s a down to earth, real, and often “boots on the ground” approach to real estate.
In todays’ show we covered the following highlights:
- The Current Status of Evictions
- The Current Status of Evictions and Forbearances
Let’s start with the eviction status first. Most evictions in the U.S. are now banned. Here is what you need to know.
In an unprecedented move last week, the Centers for Disease Control and Prevention made it illegal for landlords across the U.S. to evict tenants who can’t afford to pay their rent.
The ban could prevent up to 40 million Americans from losing their homes amid the coronavirus pandemic.
Because the action is so new and has little precedent, questions abound.
Are you eligible? What if you live in a state that already had an eviction moratorium in place? What will happen when the protection lifts?
What does the ban do?
It bans evictions due to nonpayment of rent in most residential properties between Sept. 4 and Dec. 31.
You’ll need to attest on a declaration form that you expect to earn less than $99,000 a year in 2020 (for couples, less than $198,000), that you have received a stimulus check or that you weren’t required to pay income taxes in 2019.
You’ll also need to confirm that you tried to get any available government housing assistance, that you’re unable to make rent due to “substantial loss of household income,” a layoff or extraordinary out-of-pocket medical expenses, that being evicted would require you to double up with others or become homeless and that you promise to make partial payments to the best of your ability.
It doesn’t appear that documentation will be required.
What do I have to do?
If renters meet the above requirements, they’ll have to sign a declaration form and give it to their landlord. You should try to give the form to your landlord in person. Make sure to keep a copy for yourself.
“If a tenant cannot pay the rent, they should provide the declaration to their property owner as soon as possible,” said Emily Benfer, an eviction expert and visiting professor of law at Wake Forest University.
What if my landlord ignores it?
If your landlord ignores the ban after you’ve given them the declaration, immediately seek legal help.
Sometimes the paperwork you receive with your hearing date will have the contact information for legal services in your area. If not, you should be able to find your agency online, said Alexis Erkert, a lawyer at Southeast Louisiana Legal Services.
“The court may also be able to give people contact information,” Erkert said.
You can find low-cost or free legal help regarding an eviction in your state at Lawhelp.org.
What if I’m in the process of being evicted?
The CDC bans “any action to effectuate an eviction for non-payment of rent,” Benfer said.
Therefore, if you’re in the process of being evicted for that reason, you should now be able to stay in your home through the end of the year.
What if my state already has an eviction moratorium in place?
Around 10 states have eviction protections that are even more comprehensive than the CDC’s, Benfer said.
The nationwide action doesn’t change your local laws, Benfer said. Those are still in place.
For example, while the CDC’s moratorium doesn’t prevent landlords from charging late fees, that practice is prohibited in New York. The CDC’s policy doesn’t stop property owners from reporting your nonpayment to the credit scoring companies, but a statewide rule in Connecticut does.
You can find out what local policies apply to you on the Eviction Lab’s website.
Should I still pay my rent?
An eviction ban will protect most tenants until 2021.
Focqus, LLC | iStock | Getty Images
Yes. The CDC’s order doesn’t relieve you of your obligation to pay rent.
You want to try your hardest to keep up with your bills during the Covid-19 pandemic to avoid racking up debt and being evicted come January.
At Justshelter.org, you can search for community resources for people struggling to pay their rent.
Some states and cities have funds allocated to help people stay in their homes. Arizona earmarked $5 million for that purpose. Residents in Delaware can apply for up to $1,500 in rental assistance. Similar relief measures were made available to those in Montana, Ohio, Iowa and New York.
Look for and apply for any available assistance in your area.
Meanwhile, many landlords are showing a willingness to work with tenants who ask for payment plans, experts say.
What will happen when the ban expires?
At that time, you’ll likely be asked by your landlord to pay any past-due rent. If you don’t do so, you could face eviction.
- - -
Loans in forbearance drop 1 million from peak (MPA Magazine)
Active mortgage forbearances have fallen by about 1 million from their peak in May, a drop of 21%, according to the latest data from Black Knight.
After holding steady for the previous couple of weeks, the total number of mortgages in active forbearance saw stronger-than expected improvement, dropping by about 147,000 last week, Black Knight found. The decline was driven primarily by portfolio-held loans, which fell by 75,000 last week, and GSE mortgages, which saw a drop of 49,000 active forbearance plans. FHA/VA loans in forbearance declined by 23,000.
“According to Black Knight’s McDash Flash Forbearance Tracker, as of September 1, 3.8m mortgages remain in active COVID-19 related forbearance plans, representing 7.1% of all active mortgages, down from 7.4%,” Black Knight said in an email to MPA. “Together, they represent $804 billion in unpaid principal. Of these, 75% have had their terms extended.”
Currently, 5.1% of all GSE-backed loans and 11.5% of all FHA/VA loans are in forbearance plans, Black Knight said. Another 7.5% of loans in private-label securities or bank portfolios are also in forbearance.
To learn more, listen to this week’s daily edition of the Real Estate Show and Learn why
Also find out why real estate will be one of the best places, and least risky places to put your money going forward. But you better know how.
Finally, do not panic, stay informed, and use your best judgment. The situation is rapidly changing, so focus on putting policies and procedures in place to keep your perspective.
Listen to the show live or the archived version in its entirety for all the tips, facts and ideas discussed today.
Want more? If you are serious about real estate and paying off debt, then find out more on today and every day’s episodes and learn more about Real Estate Investing and learn HOW TO by listening to The Real Estate Show with Eric Willner. The Show is Live every weekday morning at 8 o’clock (EST) on Florida’s Money Talk Radio station WSBR: AM 1470, FM 95.3, FM 96.9, and FM 103.9. You can also hear us on the free apps: iHeart Radio and TuneIn. Recorded Rebroadcasts are available 24/7 on Facebook.
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Eric Willner is the Host and Founder of The Real Estate Show, an informative show about how to buy, own, and improve real estate the right way, on autopilot. - The Automatic Landlord way. (AutomaticLandlord.com) You can reach Eric Willner at Eric@Ericwillner.com or 888-595-7779.
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