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Tenants: On The Edge Of Eviction?  Paying Rent comes First!

Tenants: On The Edge Of Eviction? Paying Rent comes First!

  • Posted: Jun 10, 2020
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Every morning for weeks, This Tenant made the same phone call:  To see if that day was the day she’d be evicted from her home.

 

She faced eviction because she couldn’t pay rent on her three-bedroom apartment, she lived where many of the city’s poorest residents live.

It can sometimes take weeks before the marshals actually show up at your door, and she fully expected to be homeless any day!

“And it’s like really scary,” the 28-year-old said. “I try so hard not to cry. Like, I would be like, ‘Oh my God, if they come today, what am I gonna do?’ ”

I first met Limes outside the courtroom of the Landlord and Tenant Branch of the Superior Court, where tenants go when they’ve been sued by their landlords for not paying rent.

That day, a judge ordered a writ of restitution — directions for the marshals to begin eviction proceedings.

Limes wore a black apron and purple shirt with the logo of a local grocery store where she works part time. When the judge asked why she owed more than $3,300, Limes said she was struggling to make ends meet.

“And basically he was like, ‘So the only reason why you’re behind on rent is because you can’t pay rent?’ And I was like, ‘Yeah, that’s the only thing,’ and he was just looking at me like, he said, ‘We’ll send out a writ,’ ” Limes recalls. “And I was just like, ‘Wow, like, is there any way I can get some help?’ ”

Limes is among the hundreds of thousands of Americans who face eviction because they simply can’t afford their rent. One in four low-income families pays more than 70 percent of its income on rent, leaving little money for other bills and almost no room for an unexpected expense.

According to the Harvard Research Center’s State of the Nation’s Housing report in 2018, rising rents and stagnating wages nationwide have contributed to a record number of cost-burdened renters — a situation that is worsened by the shortage of affordable housing for low-income tenants.

 

 

For many Tenants, Living On A Tight Margin is hard

Limes lives with her 4-year-old son and 8-year-old daughter. Her ailing father had been living with her, too, until he died recently.

“I also have my niece. She’s 18 and she’s been going from house to house,” Limes says. “So I told her just come stay with me until she get on her feet.”

Their apartment feels like someplace people are just passing through, with empty walls and plastic bins stuffed with clothes on the floor.

Limes is pretty typical of those who end up in rent court: She’s a single mother, juggling things on her own. She says the father of one of her children is in prison and the other is a deadbeat dad. She lost a full-time job last October; her new job is only 20 hours a week. At $10.50 an hour, that’s not nearly enough to cover her $1,275 monthly rent.

“They’re living on a very tight margin,” says Judge Judith Bartnoff, who presides over the D.C. court that includes the Landlord and Tenant Branch. “And if something happens, if somebody gets sick, if somebody gets hurt, if somebody loses their job, then it throws the whole system off.”

She thinks many of the thousands of tenants who come before the court each year can afford their rent at some point — but just barely.

 

Tenants help pages: learn your rights in any eviction

 

Eviction Means Losing More Than Just A Home

The hallway outside the landlord tenant courtroom is routinely packed with renters who are trying to work out deals with their landlords’ attorneys. Some offer payment plans so a tenant can catch up, but many renters just agree to move out. Or, like Limes, they resign themselves to eviction, which can make things worse.

“It really drives people deeper into a state of hardship,” says Matthew Desmond, a Harvard sociologist who spent more than a year following low-income renters and landlords in Milwaukee that he details in his new book, Evicted.

Desmond says evictions are not just a result of poverty but a cause. It makes lives more unstable. People don’t just lose their homes in evictions, he says.

 

 

“But you often lose your neighborhood and your school. Children often have to switch schools and miss long stretches,” he says.

Families often end up in areas with more crime and poorer-quality housing, Desmond adds.

Limes says she is worried about that. She wants to move, but even studio apartments are $800 a month, which she can’t afford.

“It’s like I’m stuck here. I don’t know where else to go. I don’t want to go to the shelter. I’m trying to get help. But I can’t find help anywhere,” she says.

She did get some temporary aid from the city a few years ago, but permanent housing assistance is almost impossible to find. Limes applied eight years ago for housing vouchers to help cover her rent.

“And nothing. I’m still what, 1,000 something,” she says.

 

The way we see it:  For many developers the game of adding affordable housing is for Taxes and some considerations to build in areas of cities all over America.

If the Gov’t wanted they could set aside, buy and build areas for affordable living but in time the would become slums like other housing existing all over the country. New York, DC, Seattle, and other areas where good intentions gave way to the bad elements. There are Families that need help, Good hard working single moms that were abandoned by their Baby Daddies, I will not blame it on anything other then Education!  I was taught about money, Working hard at a job, when the time was right putting in my leave or Quitting and finding another paying more and moving up.  Many dont know this? or Schools never taught this? either way, they get locked into looking for help and assistance and back we are at Housing.. Make housing , Set rents lower and lock in these rates for 5 years at a time, in those 5 years teach these people about money, a requirement for living in these homes, apts. and at the end move them to the next with a little higher rents to be paid and by now they should have a savings acct, hopefully 2 working adults contributing to the Family Dynamic……………

 

No Homeless Shelter … For Now

Five weeks after my first visit with Limes, furniture was piled on the curb outside her apartment complex. There were mattresses, CDs, a flat-screen TV. Two other families had been evicted that day. But Limes was still waiting, worried that she and her kids would end up back in the city’s homeless shelter where they were in 2012.

“It was hard, and it’s like it was disgusting. And I don’t want to put my kids in that situation again,” she says.

A week later, Limes got a reprieve — but only a temporary one: She received her earned income tax credit check from the IRS and was able to pay off what she owed.

She still has to worry about next month’s rent.

 

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HOW LONG DOES IT TAKE TO EVICT A TENANT IN NORTH CAROLINA?

HOW LONG DOES IT TAKE TO EVICT A TENANT IN NORTH CAROLINA?

  • Posted: May 07, 2020
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HOW LONG DOES IT TAKE TO EVICT A TENANT IN NORTH CAROLINA?

Pursuant to North Carolina law with the eviction process, a landlord may, following successful judicial proceeding, forcibly evict a tenant seven days after the filing of a writ of possession. North Carolina provides four instances in which a landlord may institute eviction proceedings against a tenant: non-payment of rent, a holdover tenant situation, material breach of the lease agreement by the tenant, or drug trafficking and other criminal activity by the tenant. If one of these specified grounds exist, the landlord must then service the tenant with a notice of the eviction. The notice may give the tenant a time period to cure the violation depending on the ground for eviction. For example, in a non-payment of rent circumstance, the landlord must serve the tenant with a notice of eviction and the tenant has ten days to pay the rent. If the tenant does not comply within ten days, then the landlord may institute eviction proceedings. Landlords: Need help with an Eviction? Need us to help you File

After a notice has been served, and any period for cure has lapsed, a landlord may institute a proceeding for eviction by filing a complaint for eviction of the tenant. Once the complaint has been filed and served along with a summons on the tenant, a hearing for eviction will take place. Both parties will have the opportunity to be heard and present their claims and/or any defenses. If the judge determines that the landlord is entitled to eviction, an order will be entered for the eviction. Each party has 10 days to appeal the order following the judge’s decision. After the 10-day period for appeal has lapsed, the landlord may file for a writ of possession. And after seven days after the writ of possession is filed, the landlord may forcibly take the property by changing the locks, accompanied by the county sheriff.

The actual time period for eviction varies depending on the grounds and notice period required for the specific eviction, and the court calendar in the specific judicial district for the scheduling of a hearing.

You can learn the Eviction Process and Laws in North Carolina

 

We also help Tenant understand the Eviction rights  and help with filing or notices to Tenants.

Contact NationalEvictions.com 

561-756-3540

 

 

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State-Specific Resources for Landlords, help to and handle the situation of Rent relating to COVID-19

State-Specific Resources for Landlords, help to and handle the situation of Rent relating to COVID-19

  • Posted: May 07, 2020
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How should Landlords as rental housing providers respond to and handle the situation of Rent relating to COVID-19

On March 16, 2020, The White House signed an Executive Order allowing local jurisdictions to enact eviction protections for renters that experience substantial financial hardships as a result of a tenant’s medical expenses, childcare, loss of wages, layoffs or reduction of hours relating to COVID-19 (Coronavirus). Following the order, cities have issued executive orders or have passed ordinances barring certain residential evictions.

 


State-Specific COVID-19 Resources

 

 


Here are a few ways to approach this delicate and challenging issue

1. Communicate With Renters:

First, communicate with your renter. Empathize with them and let he or she know how you feel about these unprecedented circumstances. Explain that all of us are in the same situation and because you want to ensure you can continue to provide them with a safe, well-maintained home, that would be impossible without receiving the rent you depend on to maintain the building and to support your own family.

2. Empathize:

Now, the remainder of the steps here are more concrete, but I want to make sure we address this. Tenants are people, and they are going through a remarkably scary time, as well. Perhaps it’s even worse than you’re going through, because you’re probably more financially educated than many of your tenants. So before anything else, listen to your tenant. Talk with them. Empathize with them. We’re all in this together, so let’s remember to be human and keep people before profit in our discussions.

3. Explain That Rent Is Still Due:

For as long as there have been tenants and landlords and bills to be paid, there is a super interesting piece of human behavior at play: People will pay the bills that give them the greatest consequence of not paying. In other words, most people financially struggling can pay most of their bills—but not always all of them.

This is why late fees are so vital in normal landlording. When the choice between paying rent and buying a flat-screen TV are presented to a tenant, the late fee and threat of eviction tips the scale toward using that money to pay rent.

But we’re not really dealing with flat-screen TVs today, are we? Regardless, the principle still applies. It’s likely your tenant is going to have to make some serious decisions on which bills are being paid. This is why after talking with the tenant and sympathizing with them, I believe it’s still important to let them know that the rent is still due.

As I’m sure you’ve heard, evictions are being suspended in most areas of the U.S. right now. The ability to issue a late fee might also be banned soon. Your tenant very well might assume that this means the need to pay rent is being suspended, and it’s your job to inform them otherwise.

Even if you can’t evict right now, it doesn’t mean they still don’t owe the rent, and it doesn’t mean you won’t evict when the courts open back up. You don’t need to be a jerk about it, but letting them know that you have a mortgage and other bills to pay is going to be important.

4. Give Your Tenant Options:

Once you’ve explained that the rent is still due, now it’s time to help the tenant navigate this difficult time. We plan to do this by giving them their options, as they may be unaware of the different ways they could come up with the rent.

First, we plan to keep an eye on programs that the government is designing to help tenants. This is a rapidly changing time, so we’ll keep current on assistance programs. Right now, there is a very real possibility that the government is going to issue cash payments to every adult American, which could help. But even if they don’t, there may likely be local, state, or federal programs that could.

Also, we are going to offer other suggestions, as well. For example, could they borrow the money from a relative? Or could the rent be paid via credit card?

In fact, to help where we can, we plan to offer to pay the fee associated with using a credit card. Now would be a good time to get set up with a rent collection system that has the ability to get paid via credit card.

5. Rent Deferral Plan:

Now, Its like some loans, banks can take one or two payments and move this to the back of the loans. Well these are not loans so…..

If I brought this up at the beginning for tenants, most everyone would jump at it. Remember, humans will naturally pay the most pressing bill, so I need them to know that rent is incredibly high on their priority list.

So, step five is our “worst-case” measure that will only be mentioned to tenants when they can’t or don’t pay their rent—not when they call and say they won’t be able to. We will still let the tenant know that rent is due on the 1st, give them the options I just mentioned, and even still issue a late-notice to the tenant if they miss rent.

If they really have exhausted their options and just can’t pay the rent?

 

Rent Deferral Plan

Having this documented plan in place shows the tenant that this is not us winging it—but we have a system in place to handle this crisis for everyone.

*First, there is a really important question we will ask each tenant: “How much CAN you pay toward your rent?”

Chances are, even if they can’t pay all their rent, they can probably pay some of their rent. Maybe their rent is $1,000 per month, and they can only pay $300. We’ll accept that $300 and move onto the deferral plan.

 

Rent Deferral Plan, allows the tenant to opt into a payment plan for their rent over the following 10 months. The deferral plan is an addendum to their lease that gives them the ability to take their rent and pay it in equal portions over the next 10 months (beginning the second month after enacting). It basically gives them an extra month before the increased payment begins.

For example, let’s say we’ve gone through all this, but the tenant simply cannot make the April 1st rent. They owe $1,000 in rent and because we asked what they can put toward it, they are able to pay $300. The remaining $700 becomes $70 per month and gets added to their rent beginning June 1st.

So, starting June 1st (not May 1st, and I’ll explain why in a second), they will pay $1,070 per month in rent until next March. Why not start the payment next month? Simply because I have a strong suspicion that this is not going to end that quickly and a one-month deferral may not be enough time to get back on their feet. This is why we’re going to wait an extra month before adding the extra amount. Furthermore, it is our company policy that during this time, a tenant will be allowed to use this twice. Of course, we won’t tell them this immediately, because we want to work through steps one through four first on the next month, as well. Rent has to remain a priority.

 

If after two months they are still unable to pay, the tenant may just need to be removed. This is completely uncharted territory we find ourselves in today, so I’m not going to lie to you and tell you I know exactly what we’ll do then. But the government can’t forever stop evictions and stop making people pay rent while continuing to force mortgage payments and foreclosures—or nearly every single landlord in the country will eventually go bankrupt.

If this social distancing, job loss, and potential economic meltdown continues, we’ll make new rules as it happens. My guess is that the government will offer more and more programs to attempt to help, because remember—you and I are not in this alone. Everyone is trying to figure this out. And we will. Humans have an incredible ability to figure stuff out when the night is darkest. We will get through this. We will survive. We will emerge stronger.

I hope this sheds some light on what I’ll be doing in my personal rental portfolio to handle potential rent issues in the near future. Maybe you’ll be doing something different—and that’s great. I encourage you to share your thoughts below and let us know what your plan is. And perhaps together, we can help the world move forward financially.

We are offering landlords an Agreement Form and Lease addendum package to help with this Rent Deferral Plan

Download the Forms for Covid-19 Agreements with Tenant Today!


Private and/or Non-Profit COVID-19 Resources

 


 

NationalEvictions.com is here for Landlords, Property Owners and Property Management Professionals.  We can prepare notices to be sent to Tenants, Have them Served to your Tenants,  If and when the Notices expire have all the court forms ready to file with the courts for Landlords. 

Find out more about your rights and our services on our website: https://NationalEvictions.com

 

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Concerned Landlords who have been notified by their renters that rent will not be paid due to the coronavirus. They are asking what should we do?

Concerned Landlords who have been notified by their renters that rent will not be paid due to the coronavirus. They are asking what should we do?

  • Posted: Mar 26, 2020
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Landlords who have been notified by their renters that rent will not be paid due to the coronavirus. What should they do?

They are asking us, how should we as rental housing providers respond to and handle these situations?

On March 16, 2020, The White House signed an Executive Order allowing local jurisdictions to enact eviction protections for renters that experience substantial financial hardships as a result of a tenant’s medical expenses, childcare, loss of wages, layoffs or reduction of hours relating to COVID-19 (Coronavirus). Following the order, cities have issued executive orders or have passed ordinances barring certain residential evictions.

 

So, what should you do if a renter tells you that he or she do not want to pay their rent?

Here are a few ways to approach this delicate and challenging issue:

 

1. Communicate With Renters:

First, communicate with your renter. Empathize with them and let he or she know how you feel about these unprecedented circumstances. Explain that all of us are in the same situation and because you want to ensure you can continue to provide them with a safe, well-maintained home, that would be impossible without receiving the rent you depend on to maintain the building and to support your own family.

2. Offer Deferment Of Rent:   read more below onour five-point plan for dealing with late or missing rent.

Next, when necessary, consider offering a full or partial deferment of rent. But let your renter know any reduced or deferred rent is not forgiven rent, and that they will have to repay you.

3. Ask them to Provide Written Documentation:

Any renter that asks you to reduce or defer rent must provide you with written documentation that they have suffered adverse financial consequences due to the COVID-19 virus resulting in a “substantial” reduction or loss of income for any of the following reasons:

Sickness with COVID-19 or caring for a household or family member who is sick with COVID-19.

Lay-off, loss of hours, or other income reduction resulting from business closure or other economic or employer impacts of COVID-19.

Compliance with a recommendation from a government health authority to stay home, self-quarantine, or avoid congregating with others during the state of emergency.
Extraordinary out-of-pocket medical expenses.

Childcare needs arising from school closures related to COVID-19.

 

If you have been impacted by one of the situations above, your renter must provide you with written notice of his or her inability to pay the rent as soon as the circumstances set forth above arise. In addition, in order to temporarily avoid eviction proceedings, your renter is obligated provide specific, verifiable supporting financial, employment and/or medical documentation of loss of income and reflecting that his or her loss of income is directly attributable to COVID-19.  After the expiration of the local emergency, the tenant must repay within the period of time set by local ordinance or government order. Be sure any rent reduction or agreement made with your renter is documented in writing through a lease amendment.

 

Remember, the law does not eliminate your renter’s obligation to pay the unpaid rent. After the expiration of the local emergency, your renter is obligated to repay any deferred or forgiven rent, and you as an owner may seek payment of the unpaid rent. if they dont? You may need our services for an eviction or an legal agreement?

 

Of course, if you’re not a landlord, you’re probably wondering, “What’s the big deal? Just do the nice thing and don’t make anyone pay rent.” But as Property Owners, Managers and Landlords we know that’s not necessarily possible, right?

 

I mean—unless the government changes something,  we aren’t just going to be able to stop paying our mortgage payments, our taxes, the insurance, and everything it takes to keep our properties running. And despite what the general population thinks, most landlords are not rich, greedy, multinational corporations with billions sitting in the bank.

Most landlords are people just like you and me—people who, whether by accident or on purpose, ended up with a few rental properties and are trying to manage them while also working a job or running a business.

Most won’t be able to pay the bills on their properties long-term without receiving rent from our tenants.

How can we look at this situation and make decisions that are best for all. Well, I can’t answer for you necessarily, as we all have unique situations. But I can at least share with you my exact strategy that we have come up with.

 

Here’s our five-point plan for dealing with late or missing rent.

 

Step 1: Have a Plan:

Ok, this is kind of a summary point, but it needs to be made. Whether in the Wild West or dealing with a tenant, shooting from the hip is generally a pretty terrible plan. Making decisions on the fly usually results in bad decisions being made, so step one is commit to having a plan written down for how you will deal with this issue.  Because for most property owners, this is not a question of IF but WHEN. Maybe this can become a plan that you follow, but even if you do something entirely different from what I’m about to say… just be sure you are prepared. This way, you won’t be shooting from the hip when that dreaded phone call comes in from the tenant who just lost their job.

Step 2: Empathize:

Now, the remainder of the steps here are more concrete, but I want to make sure we address this. Tenants are people, and they are going through a remarkably scary time, as well. Perhaps it’s even worse than you’re going through, because you’re probably more financially educated than many of your tenants.

So before anything else, listen to your tenant. Talk with them. Empathize with them. We’re all in this together, so let’s remember to be human and keep people before profit in our discussions.

Now that said, we still need rent. We can’t survive financially without it. So, that brings me to step three.

Step 3: Explain That Rent Is Still Due:

For as long as there have been tenants and landlords and bills to be paid, there is a super interesting piece of human behavior at play: People will pay the bills that give them the greatest consequence of not paying. In other words, most people financially struggling can pay most of their bills—but not always all of them.

This is why late fees are so vital in normal landlording. When the choice between paying rent and buying a flat-screen TV are presented to a tenant, the late fee and threat of eviction tips the scale toward using that money to pay rent.

But we’re not really dealing with flat-screen TVs today, are we? Regardless, the principle still applies. It’s likely your tenant is going to have to make some serious decisions on which bills are being paid. This is why after talking with the tenant and sympathizing with them, I believe it’s still important to let them know that the rent is still due.

As I’m sure you’ve heard, evictions are being suspended in most areas of the U.S. right now. The ability to issue a late fee might also be banned soon. Your tenant very well might assume that this means the need to pay rent is being suspended, and it’s your job to inform them otherwise.

Even if you can’t evict right now, it doesn’t mean they still don’t owe the rent, and it doesn’t mean you won’t evict when the courts open back up. You don’t need to be a jerk about it, but letting them know that you have a mortgage and other bills to pay is going to be important.

 

Step 4: Give Your Tenant Options:

Once you’ve explained that the rent is still due, now it’s time to help the tenant navigate this difficult time. We plan to do this by giving them their options, as they may be unaware of the different ways they could come up with the rent.

First, we plan to keep an eye on programs that the government is designing to help tenants. This is a rapidly changing time, so we’ll keep current on assistance programs. Right now, there is a very real possibility that the government is going to issue cash payments to every adult American, which could help. But even if they don’t, there may likely be local, state, or federal programs that could.

Also, we are going to offer other suggestions, as well. For example, could they borrow the money from a relative? Or could the rent be paid via credit card?

In fact, to help where we can, we plan to offer to pay the fee associated with using a credit card. Now would be a good time to get set up with a rent collection system that has the ability to get paid via credit card.

 

Step 5: Emergency Rent Deferral Plan:

Now, this is where I hope my tenants don’t watch this video—because I don’t want the tenant really knowing this is an option. If I brought this up at the beginning for tenants, most everyone would jump at it. Remember, humans will naturally pay the most pressing bill, so I need them to know that rent is incredibly high on their priority list.

So, step five is our “worst-case” measure that will only be mentioned to tenants when they don’t pay their rent—not when they call and say they won’t be able to. We will still let the tenant know that rent is due on the 1st, give them the options I just mentioned, and even still issue a late-notice to the tenant if they miss rent.

But what if they really have exhausted their options and just can’t pay the rent?

This is where we will introduce the tenant to our

 

Have a Rent Deferral Plan
_________________________________________________

And because you followed step one above, we have a specific plan in place to deal with this inevitable situation. Having this documented plan in place shows the tenant that this is not us winging it—but we have a system in place to handle it.

First, there is a really important question we will ask each tenant: “How much CAN you pay toward your rent?”

Chances are, even if they can’t pay all their rent, they can probably pay some of their rent. Maybe their rent is $1,000 per month, and they can only pay $300. We’ll accept that $300 and move onto the deferral plan.

 

Simply put, the ERDP allows the tenant to opt into a payment plan for their rent over the following 10 months. The deferral plan is an addendum to their lease that gives them the ability to take their rent and pay it in equal portions over the next 10 months (beginning the second month after enacting). It basically gives them an extra month before the increased payment begins.

For example, let’s say we’ve gone through all this, but the tenant simply cannot make the April 1st rent. They owe $1,000 in rent and because we asked what they can put toward it, they are able to pay $300. The remaining $700 becomes $70 per month and gets added to their rent beginning June 1st.

So, starting June 1st (not May 1st, and I’ll explain why in a second), they will pay $1,070 per month in rent until next March.

Why not start the payment next month? Simply because I have a strong suspicion that this is not going to end that quickly and a one-month deferral may not be enough time to get back on their feet. This is why we’re going to wait an extra month before adding the extra amount.

Furthermore, it is our company policy that during this time, a tenant will be allowed to use this twice. Of course, we won’t tell them this immediately, because we want to work through steps one through four first on the next month, as well. Rent has to remain a priority.

If after two months they are still unable to pay, the tenant may just need to be removed. This is completely uncharted territory we find ourselves in today, so I’m not going to lie to you and tell you I know exactly what we’ll do then. But the government can’t forever stop evictions and stop making people pay rent while continuing to force mortgage payments and foreclosures—or nearly every single landlord in the country will eventually go bankrupt.

 

If this social distancing, job loss, and potential economic meltdown continues, we’ll make new rules as it happens. My guess is that the government will offer more and more programs to attempt to help, because remember—you and I are not in this alone. Everyone is trying to figure this out.

And we will. Humans have an incredible ability to figure stuff out when the night is darkest. We will get through this. We will survive. We will emerge stronger.

I hope this sheds some light on what I’ll be doing in my personal rental portfolio to handle potential rent issues in the near future. Maybe you’ll be doing something different—and that’s great. I encourage you to share your thoughts below and let us know what your plan is. And perhaps together, we can help the world move forward financially.

 

NationalEvictions.com is here for you, We can prepare notices to be sent to Tenants, Have them Served to your Tenants,  If and when the Notices expire have all the court forms ready to file with the courts for all Landlords

Find out more about your rights on our website: https://NationalEvictions.com

 

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Millions of U.S. households are expected to face financial burdens in the wake of the coronavirus pandemic.

Millions of U.S. households are expected to face financial burdens in the wake of the coronavirus pandemic.

  • Posted: Mar 26, 2020
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Millions of U.S. households are expected to face financial burdens in the wake of the coronavirus pandemic.

If you are facing reduced hours or job loss and are worried about making your rent or mortgage payment this month, stay calm — President Trump said Wednesday that the Department of Housing and Urban Development will suspend “all foreclosures and evictions” through the end of April.

That said, you will still want to discuss your options with your mortgage lender or landlord if you have experienced a disruption in your income. Here are some steps to take now.

 

 

If you are a homeowner

Contact your lender

Financial planners and consumer advocates are encouraging homeowners to reach out to their loan servicer directly to discuss payment options as soon as they can.

“Borrowers should first reach out to their mortgage holder and inquire about resources they have to delay payments,” John Graff, a Los Angeles-based real estate broker, tells CNBC Make It. “Many lenders have implemented special waivers due to COVID-19, you should check with them first.”

Lenders have certain obligations under your mortgage contracts, says Ira Rheingold, executive director of the National Association of Consumer Advocates. If they aren’t willing to work with you, he suggests reporting them to your state attorney general’s office and the Consumer Financial Protection Bureau.

“You’ve got a long-term relationship with them and they have certain obligations under the law,” says Rheingold. “Contacting them before you are behind is a good thing to do.”

 

Reach out to your bank or credit union

Your bank may also offer hardship programs you can tap into. Don’t wait until your mortgage payment is due to find out about this, call today.

“You have to call and ask about it and most likely apply,”  “Don’t wait until your mortgage payment is due to find out about this, call today. Remember that you don’t have to take advantage of these programs, but it’s worth it to know what’s out there.”

If that doesn’t work,  we suggest contacting your bank to discuss your personal loan options to continue making payments. “Low rates coupled with mass benevolence from corporate America means you may be able to borrow some cash to help tide you over,”

Many banks are already putting together coronavirus response pages. Here are a few major ones:

 

Put your loan in forbearance

A less-than-ideal alternative for homeowners is forbearance, a hardship option that allows you to postpone payments.

“The key here is to inquire about options available for a delay in payments under so-called hardship circumstances,” says Mark Hamrick, senior economic analyst at Bankrate.com.

Although this can provide immediate relief, interest will still accrue on your loans. Since you won’t be paying down your principal balance, that means you will likely owe more in the long run because you will owe more in interest than you would if you made regular payments.

If you have to go this route, ask your lender what terms they can offer you. They will be different for each person depending on their financial history and loan provider.

 

If you are a renter

Give your landlord notice

Renters are advised to contact their landlords as soon as they can to talk through delayed or partial payment options.

“Most landlords would be willing to work with a good tenant who is experiencing hardship due to current events,” says Graff.

Work out a payment plan

It’s best to give your landlord at least a partial payment if you can, says Long. Make a payment plan with them with repayment dates, and get everything in writing. She suggests using the following script and inputting your own financial details:

Hi landlord, as you probably know, I’m off work right now. Will you accept $500 this month rather than the typical $1,000?

If you believe you won’t be able to make a payment at all, bring it up to your landlord as soon as possible and, again, ask if you can put a plan into place to pay once you have income again. Long says to ask if you can skip a month and spread the payment out over the next six months (or whatever is realistic for you) once you are back to work.

“Remember that your landlord needs income too, so approach this with empathy for what you’re asking,” she says. Make clear that “you’re just paying late rather than asking for free money.”

You can also call 211 for your local United Way to see if they are offering rent help, Long suggests.

Look for outside assistance

If your landlord refuses to work out a payment plan, Graff suggests turning to your bank for a short-term loan.

“Many banks are offering to help their customers during this difficult time and you should absolutely take advantage of the assistance if you need it,” he says.

 

 

Housing is your top priority

Housing and food should be your top priorities, says Long. After that, take time to figure out what’s going on with your other bills. Both renters and homeowners can check in with creditors and utility companies to see if they are offering financial hardship assistance.

“If your utility company is willing to waive late fees and give you a payment plan with super low interest for your bill, but your internet provider won’t be flexible, you may opt to pay your internet bill before utilities,” she says. “The goal is to minimize the long-term impact of paying late or less than in full.”

 

Eviction bans

Before Trump announced that the federal government would take action, many cities and some states said that they would implement 30-day or indefinite eviction bans so that renters cannot be kicked out of their homes during the crisis.

“In Los Angeles, for instance, renters experiencing hardship due to COVID-19 qualify for the eviction moratorium and will have up to six months to repay any unpaid rent,” says Graff. “You should check local and state government websites to see if there are options like this available in your area.”

Other cities and states doing this include Baltimore, Boston, Kansas, Miami, New York state, Portland, Sacramento, San Francisco, San Jose and Seattle.

The Federal Housing Finance Agency has asked mortgage servicers to offer borrowers options to reduce or suspend payments for up to six months, says Jill Fopiano, CEO of Boston-based O’Brien Wealth Partners. She also advises homeowners to consult the CFPB’s Find a Counselor tool, which provides a list of counseling agencies.

 

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