One Year Rent Deferment

[ponyo]

https://www.canyon-news.com/santa-monica-extends-eviction-moratorium-to-june-30/108342

Basically as long as the tenant says they can't pay because of covid-19 hardship, property owners can't kick them out for a year for nonpayment. This is absolutely crazy. So can the property owner also not pay the bank for one year? That's only fair.

Your previous title, "Over 1 year free rent now in Santa Monica, CA" is false and misleading. I have edited it for accuracy.

Perknose
Forum Director

 

[Brainonska511]

Those properties are an investment, not a guaranteed return.

And if I remember correctly, some of the relief bills allowed for delaying mortgage payments, so those landlords could look at that

 

[brycejones]

https://www.canyon-news.com/santa-monica-extends-eviction-moratorium-to-june-30/108342

Basically as long as the tenant says they can't pay because of covid-19 hardship, property owners can't kick them out for a year for nonpayment. This is absolutely crazy. So can the property owner also not pay the bank for one year? That's only fair.

Mass homelessness is clearly the answer!

 

[darkswordsman17]

OP, I'm damn sure that yes the landlords can also seek relief due to this situation so I don't know what the hell you're bitching about.

I also love the "this is crazy" remark like you can't fathom that a global pandemic might create some less than desirable situations.

 

[pauldun170]

OP, I'm damn sure that yes the landlords can also seek relief due to this situation so I don't know what the hell you're bitching about.

I also love the "this is crazy" remark like you can't fathom that a global pandemic might create some less than desirable situations.

Whats crazy is it took me 60 seconds to find this

COVID-19 Resources Archives

What you need to know Rental Assistance Payment ProgramCOVID-19 Tenant Relief ActLocal COVID-19 Tenant ProtectionsState & Federal COVID-19 Tenant ProtectionsReopening CaliforniaVideo Resources for Rental Housing Providers Rental Assistance Payment Program Visit CAA’s compliance page at...

caanet.org

If your loan is owned or guaranteed by a federal agency, such as Fannie Mae, Freddie Mac, the Federal Housing Administration, the U.S. Department of Veterans Affairs, or the U.S. Department of Agriculture, and you have a financial hardship because of COVID-19, you may be able to get a forbearance of mortgage payments for up to 180 days plus an extension for another 180 days under the federal CARES Act. Properties with 5+ units receiving this relief must comply with federal eviction protection requirements (discussed here) in addition to any more protective state and local requirements.

Renters can DEFER payments for one year (they still owe the rent)
Landlords can get forbearance of up to 360 days (180+180=360)

While it would be nice to be able to supply actual statistics on renter requesting deferment I think its a waste of my time to do so.

 

[Homerboy]

The title of the thread is 100% wrong. It's not "free rent". Re-read the article you posted.

 

[Meghan54]

The title of the thread is 100% wrong. It's not "free rent". Re-read the article you posted.

Meh....details, details, details.

 

[Fanatical Meat]

Two things that have been covered.

1st Forbearance is not debt forgiveness it is basically allowing a late payment

2nd No business is guaranteed to succeed. Many people for whatever reasons don’t look at someone renting something as a business.

Finally I do agree it will be hard for landlords because even if they get forbearance on their Mortgage which I am going to guess will be difficult on an income property, they still have expenses and repairs and basic maintenance that MUST be performed.
Again sucks for the landlord however overall they have a fairly easy path, just sell the damn property.

 

[ponyo]

Anyone who uses this covid-19 hardship loophole is not going to pay. That's a given. If someone stopped paying rent Feb of this year, they wouldn't have to pay rent until around August of next year. Basically one and half year of rent free living. You're not going to collect 12 months or 18 month rent all at once.

 

[Fanatical Meat]

Anyone who uses this covid-19 hardship loophole is not going to pay. That's a given. If someone stopped paying rent Feb of this year, they wouldn't have to pay rent until around August of next year. Basically one and half year of rent free living. You're not going to collect 12 months or 18 month rent all at once.

I agree, if you can’t pay any rent now what makes anyone believe they can pay 6-12-18 months rent all at once or over a reasonable timeframe months from now.
However as I said earlier owning a rental property is a business and owning a business carries risk.

 

[JEDIYoda]

Mass homelessness is clearly the answer!

YES!! Then you have empty property that still is not collecting any income......

 

[brycejones]

Anyone who uses this covid-19 hardship loophole is not going to pay. That's a given. If someone stopped paying rent Feb of this year, they wouldn't have to pay rent until around August of next year. Basically one and half year of rent free living. You're not going to collect 12 months or 18 month rent all at once.

How is it a loophole?

 

[JEDIYoda]

How is it a loophole?

why is this a loophole?

 

[dainthomas]

https://www.canyon-news.com/santa-monica-extends-eviction-moratorium-to-june-30/108342

Basically as long as the tenant says they can't pay because of covid-19 hardship, property owners can't kick them out for a year for nonpayment. This is absolutely crazy. So can the property owner also not pay the bank for one year? That's only fair.

Investments don't always pay out. If they need that money to pay the mortgage, sounds like they need to sell. A year is the maximum rent can be deferred, but a vast majority aren't going to wait a full 12 months and then pay it all at once. Maybe their lender will understand and defer for the same period.

 

[alcoholbob]

Mass homelessness is clearly the answer!

Since the hotels are getting bailed ou to do nothing but let their buildings stay vacant, why not move all the people who can't pay rent in there? Seems more reasonable then passing the buck to homeowners.

 

[JEDIYoda]

Since the hotels are getting bailed ou to do nothing but let their buildings stay vacant, why not move all the people who can't pay rent in there? Seems more reasonable then passing the buck to homeowners.

How so??

 

[brycejones]

Since the hotels are getting bailed ou to do nothing but let their buildings stay vacant, why not move all the people who can't pay rent in there? Seems more reasonable then passing the buck to homeowners.

Great plan we can confine people in close quarters during a pandemic. Where in most cases they are unable to prepare their own food.

 

[JEDIYoda]

Great plan we can confine people in close quarters during a pandemic. Where in most cases they are unable to prepare their own food.

Now the Motels are tasked with paying more for electric and water and the people still need to eat! Most motel rooms last time I checked do not have food preparation areas....

 

[DisarmedDespot]

Anyone who uses this covid-19 hardship loophole is not going to pay. That's a given. If someone stopped paying rent Feb of this year, they wouldn't have to pay rent until around August of next year. Basically one and half year of rent free living. You're not going to collect 12 months or 18 month rent all at once.

There's this magical thing called a 'lease.' A lease is a 'legal document.' Renters sign it and agree to pay X amount for Y living space. If the rent is deferred, they still owe X, just not on the same schedule. If they don't pay, there's this magical place called a 'court' that landlords can use to force them to pay. If they can't pay at once, they can make a payment plan. If they can't pay or refuse to pay, their wages are garnished.

Really, though. Renters need to provide proof that they can't pay due to covid, and forging those documents would be fraud. This is a sucky time to be a landlord, but it's just as sucky to be someone who can't work because their employer is shut down.

 

[Jhhnn]

Investments don't always pay out. If they need that money to pay the mortgage, sounds like they need to sell. A year is the maximum rent can be deferred, but a vast majority aren't going to wait a full 12 months and then pay it all at once. Maybe their lender will understand and defer for the same period.

The people who can't pay will be forced into bankruptcy down the road which will cascade into mortgage & fixed income instruments becoming toxic securities. The FRB is buying up all the market will give them so that the banks & hedge funds have the liquidity to unwind precarious positions. We were approaching the end of an overblown business cycle, anyway. They were playing Hell keeping the credit bubble inflated before the pandemic.

It's a low tax small gubmint financiers' paradise. Risk isn't risk when you're sure to be bailed out & the little people get left holding the bag.

 

[Jhhnn]

Since the hotels are getting bailed ou to do nothing but let their buildings stay vacant, why not move all the people who can't pay rent in there? Seems more reasonable then passing the buck to homeowners.

Hoovervilles! What we need are Hoovervilles! Liquidate all those deadbeat motherfuckers like Andrew Mellon offered 90 years ago!

 

[Fanatical Meat]

Since the hotels are getting bailed ou to do nothing but let their buildings stay vacant, why not move all the people who can't pay rent in there? Seems more reasonable then passing the buck to homeowners.

Rental would still be empty with zero income. Solves nothing but feels.
Also mass migrating people to hotel type rentals would impact the market lowering rents for landlords whom have paying tenants.

 

[Fanatical Meat]

BTW I bet all the landlords whom made it impossible for a person on a public assisted housing budget are regretting that decision. Highly doubt the State has stopped paying rent.

 

[Greenman]

This seems like something that will be challenged in court. It also seems like it's going to make finding a rental impossible if you don't have an 800 credit score and a fair pile of money in the bank.

 

[Fanatical Meat]

This seems like something that will be challenged in court. It also seems like it's going to make finding a rental impossible if you don't have an 800 credit score and a fair pile of money in the bank.

Yeah there's this too....