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Should rent & mortgage payments be canceled during the pandemic?
- Thread starter Rembrandt Brown
- Start date
BY REBECCA KLAR, The Hill
04/19/20
Rep. Ilhan Omar (D-Minn.) has introduced legislation to cancel rent and mortgage payments nationwide amid the coronavirus pandemic.
Omar’s bill would establish a relief fund for landlords and mortgage holders to cover losses from the canceled payments.
Under the proposal unveiled Friday, rent and mortgage payment cancellations would be available for Americans regardless of income. There also would be no debt accumulation for renters and homeowners as well as no negative impact on their credit ratings or rental histories.
The bill also seeks to create an optional fund to fully finance the purchase of private rental properties by nonprofits, public housing authorities, cooperatives, community land trusts, and state or local governments in an effort to increase the availability of affordable housing.
Omar’s bill proposes the moratorium on payments to last one calendar month after the end of the national emergency, which was declared in March. The bill also calls for the suspension to retroactively cover payments made in April.
Landlords or mortgage holders who take action against tenants or property owners would be subject to fines starting at $5,000 for first violations and up to $50,000 for third or subsequent violations.
“The coronavirus crisis is more than just a public health crisis—it’s an economic crisis,” Omar said in a statement.
“Congress has a responsibility to step in to stabilize both local communities and the housing market during this time of uncertainty and crisis. In 2008, we bailed out Wall Street. This time, it’s time to bail out the American people who are suffering,” she added.
The bill is co-sponsored by Democratic Reps. Alexandria Ocasio-Cortez (N.Y.), Rashida Tlaib (D-Mich.), Pramila Jayapal (Wash.), Mark Pocan (Wis.), Ayanna Pressley (Mass.), Veronica Escobar (Texas), Jesús García (Ill.) and Grace Meng (N.Y.).
whether they're cancelled or not...you can't get blood from a stone...
Of course, but you know....the rich.
Mortgage payments definitely.
Rent is a little trickier.
A lot of people who rent out properties are average working individuals who live check to check like anyone else and are probably struggling like everyone else.
I don't think it's fair to pass those costs onto them.
Rent is a little trickier.
A lot of people who rent out properties are average working individuals who live check to check like anyone else and are probably struggling like everyone else.
I don't think it's fair to pass those costs onto them.
That is the bottom line. Capitalism is evil. Capitalism says "fuck your ability to pay, here's what you owe."
Merely suspending rent & mortgage payments just sets up mass evictions. Yet that's what's being done across the country.
They aren't "like everyone else." By definition, they are higher up on the food chain than the people renting from them.
If they benefit from having their rent and mortgage canceled like everyone else, their most immediate need is met just like it will be for their renters. If this happened, they would be like everyone else in that respect. Meaning protected. Everyone wins, or at least avoids the worst as far as housing.
They get a personal stimulus check for themselves, that has nothing to do with their rental property and expenses.
I disagree.
Again this is a small business they've invested money in that would cease while they're still going to ultimately be responsible for the ongoing expenses that come with the property (water, garbage and any other applicable taxes in addition to any utilities that may be included.)
They're also going to still be responsible for any repairs that may need to be made as well during this time while receiving no income from the property and possibly their job.
And the likelihood of someone in this situation being lucky enough to receive one of those small business loans they've offered is slim I'd imagine, especially considering so many big businesses which shouldn't have been eligible have been getting approved for them.
mortgages are insured so the banks will get they paper. but I have a couple of friends and family members who own and rent several properties. My cousin has three houses, two she rents to HUD so she gets her rent. Luckily the third is rented to someone who receives VA checks and they paid this month no problem. My dads friend who doesnt have a 9-5, he owns a 12 unit apartment and a couple of houses for his income. its tricky to tell someone like that, that he should let everyone live rent free for 3-6 months and take thousands of dollars loss and forgive the debt.
Lemme think... Ummm, yea. And afterwards too. And forever
How do you tell people who are not working because of corona virus they need to pay rent?
My mortgage company sent me a email...talking about they are proud to offer a pause of mortgage for three months...but at the end of the three months a ballon payment for the previous payments are due.
I responded MIYDGTFOHWTBS
I responded MIYDGTFOHWTBS
Yeah, I received the same, but there are 3 options at the end of the forbearance period: pay the entire balance, spread it across the loan OR work out a plan. I'm hoping that last option will allow us to move the payments to the end of our mortgage.
I took them up on their offer, but we're placing our mortgage payments in our savings account - not spending it. If they give us the option to place those payments a the end of our motrtgage, we're keeping the money. If they offer something insane (like raising our rate) or ask for it all, we're transferring the money.
I'd recommend giving this approach some thought.
Not enough ppl clamoring for this to happen.... Yet... Folk gonna get there in a week or so that's why they so desperate to reopen shit to get ppl off the unemployment that many of them still haven't received
This is better than what we were offered.
All they said was at the end of the forberance period..a ballon payment would be due. And that they could possibly "work something out". I was like, forget that...we'll continue to pay.
I was working in mortgages back when Obama started those Justice refi and deferment mortgage programs. I've seen how they can easily make deferments and put payments to the back of the loans instead. They also offered refi's that almost anyone could qualify for. The Cares act bill dropped the ball on this.
I agree with you man. Folks quick as fucking hell to lump in landlords with the 1 percent. In reality, most them just 1 percent dreaming. They trying to play monopoly and ain't that far above their tenants. Shit. Most of them got those properties on credit and are far from owning them outright. The very few who own outright MIGHT be in positions to cut breaks, but they have other expenses like you mentioned.
But in the other thread, someone said landlords can't get on with the small business loans, so they are businesses owners who are getting horsefucked while huge corporations get the SBA grants/loans.
On the other side, they ain't getting good forbearance deals UNLESS they have government-backed loans. Otherwise, they have to pay the lump sum when it's over. So guess what? That lump sum has to be passed to renters. That means evictions.
This isn't on landlords. It's on politicians and bankers. They only fixed it for government-backed loans, but don't guarantee tenant safety AFTER this is over.
If a tenant finds out that their landlord has a government-backed loan and that they used forbearance, the game changes. Why? Because that landlord AUTOMATICALLY qualifies for a new loan that puts the forbearance amount on the backend AFTER the mortgage is paid off. Zero interest. If that landlord demands a lump sum payment from their tenant, that landlord is a scumbag.
This. They "can" do it, but some simply don't "want" to do so. I'm in agreement w/ you if they only presented you with an offer to essentially let your mortgage payments pile up. Nothing about that is helpful.
We hope to keep ours, but we'll take the same approach as you if they come back w/ unreasonable terms at the end of the forbearance period.
thats why I said it was tricky, I dont have all his details but i assume he has a loan he is repaying for the apartment building. So if the bank is giving him a break he should pass along to tenants.
While I respect your opinion, I have to disagree.
Capitalism is a thing/ system. It isn't inherently evil or bad. It is the people within the system that produce adverse outcomes. Ironically, people do not fully understand what capitalism, socialism, and communism really are. Neither is completely bad. All have a place in society. And all are best-case scenarios for various situations.
To the OP's question, canceling mortgage and rent isn't as simple as "let's just stop paying." When do we start back? Do we start back paying when the stay at home order is lifted? When the unemployment rate returns to its previous number? Additionally, the trickle-down effect would be tremendous. As someone else mentioned, there are many non-millionaires who rent out to people. I know teachers, retirees, immigrants, etc. who rent out rooms to make ends meet. I know regular folk who rent out to students and depend on that income to survive. Should those landlords be forced to support other people? If they lose that income they can't eat. Usually, water and utilities are included in the rent. So, now the landlord has to pay for the renter's other living expenses. Additionally, I assure you in business it is all about margins. If banks lose income from mortgages, they will make up that loss by firing people. Banks are inherently greedy and will do whatever they can to make money. However, as someone said, you can't get water from a dry well.
@55th View @BlkStrength I read about the offer some of the banks are sending out. Some of those forbearances will still accrue interest. Which means more money for the banks. My wife and I have been paying twice the mortgage in an effort to pay off our 30-year mortgage less than 10 years. If things were to get tight, we will pay the regular monthly rate.
Who is your mortgage company? I am with Wells Fargo and did a suspension, but also doing what you are doing...Putting my normal payments in a savings account also.
Our mortgage was sold off to a smaller bank shortly after our home purchase. They're decent, but we're not spending a dime of the mortgage payments. If they present anything unreasonable at the end, we're transferring it all and picking up where we left off.
Someone who genuinely doesn't have income is a different situation.
However even with this the issue, in most cases, is the fact that so many states and the government have fucked up when it comes to dealing with the influx of unemployment benefit claims and with the stimulus payments.
If these were in place the majority of unemployed could pay their rent for a few months (in most cases.)
But there are also a lot of people who are simply planning on not paying their bills during this period even though they've loss no income.
I'm currently working as a social worker with disabled individuals who primarily receive either SSI, SSDI, public assistance/food stamps (SNAP), monthly utility vouchers, etc. none of which has been cut.
In fact here in New York State they've increased the SNAP benefits for a few months giving individuals the maximum amount they're eligible for and not counting other income/factors.
In addition to this many of my clients receive some form of rental assistance which covers a significant amount of their monthly rent.
On top of this most will at some point be receiving the $1200 stimulus payment plus $500 per kid (and I have a few cases who have between 6 to 8 eligible children.)
And yet more than a few of my cases have relayed that they aren't planning to and don't feel they have to pay their bills which I'm constantly advising them against.
I say all of this to say that it would be unfair to fuck over some of these landlords by permitting tenants who can still afford to pay rent to not pay it while also not compensating the landlords for this lost income.
How do you tell people they have to come out of their pocket to maintain their rental property without people paying their rent?
Does that sound fair to you?
As the guy in the video laid it out,, it is a simple problem to fix. The greatest hindrance comes from our leaders who are owned by their wealthy donors on the front and back end of their political careers. They figure they have everything to lose siding with the people, so they don't ... "short term pain for long term gain" or so they hope.
If the politicians are being controlled by the wealthy donors, then that is because the people refuse to keep the politicians accountable.
Yes, mortgage payments are paused yet those greedy fucks are still collecting rent.
If the politicians isn't doing what the people want, then depending on the rules/laws in ones state/local government. You won't have to wait fir election time because they can be recalled. Yet that may be too much work for too many people and that is the reason politicians aren't accountable to the people but accountable to the donors. The donors hold the politicans accountable.
No. I'm not getting stimulus check. UI, nothing. My bank said I can furlough my mortgage for 6 months, but on the 7th they want all 7. Simply greedy and the bank would love to take my house. It's worth double what I owe.
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