Tenants/Landlords COVID-19 Rental/Mortgage struggles in Oregon.

Oregon’s temporary ban on commercial and residential evictions during the COVID-19 pandemic has been extended through Sept. 30.

Moratorium on residential evictions in Oregon, based on nonpayment of rent or terminations without tenant cause, and creation of a six-month repayment grace period

under the law HB4213. A landlord can give the tenant a notice saying how much rent the tenant owes and will have to pay back by March 31, 2021 landlord within 14 days, if the tenant plans to use the six-month grace period to pay back any rent owing

Is Your Rental Property-COVID-19 Becoming A Nightmare?

The FHFA has extended the foreclosure and Real Estate Owners (REO) eviction moratorium until at least December 31, 2020. The foreclosure moratorium applies to Enterprise-backed, single-family mortgages only. The REO eviction moratorium applies to properties that have been acquired by an Enterprise through foreclosure or deed-in-lieu of foreclosure transactions. The current moratoriums were set to expire on August 31, 2020. 

Locally, the Oregon Legislature has extended the statewide eviction moratorium to September 30, 2020. All renters in Oregon now have until March 31, 2021, to pay back rent that was built up during the moratorium.

A landlord will have to wait until April 1, 2021, to evict a tenant for not paying rent that came due during the eviction moratorium. If a landlord violates any part of the new law, a tenant can get a court order to force the landlord to allow the tenant to move back into their home.

Many mortgage-paying individual landlords in Oregon, are sitting in the middle of the crossfire. on one side, their tenants can’t pay rent because of the COVID-19 hardship. On the other side, they were counting on the rental income to comply with their mortgage obligations. This means, perhaps the CARES act rules for backed mortgages, individual landlords debt is building up.

For landlords whose rental house mortgages are non-federally backed up, the situation is getting even worse. They can do anything to recover control over their properties until March 31. By law, tenants must pay the build-up rent, at once or split the amount into the next six months, starting on October 1.

What if My Tenant Can’t Pay The Rent on October 1st?

On August 21st, we at Better Off Home Buyers received a message through our website’s contact information form from Mr. Robert Allen. We replied to his message with a phone call. Mr. Allen is a Portland resident who has lost his job during this pandemic.

He owns a tenant-occupied rental property with a non-federally backed mortgage. 

Due to his financial situation, he was counting on the rental house income to cover part of the mortgage and other expenses.

By June 16th, His tenant notified him that he had been furloughed without a clue when to return to work, so he was unable to make rental payments. Mr. Allen who was in the same situation since May was using his savings to cover his family’s needs and had no extra money for the rental property’s obligations.

By June 17th, Robert contacted his bank to get information about forbearance plans or any other program they may have to help homeowners in crisis. After complicated documentation by the bank. He was granted a 3 months forbearance plan for his rental property. His bank informed him, they would not charge for late fees on the forbearance plan, but interests will be added to the mortgage balance.

Mr. Robert Allen, following the State of Oregon regulations, immediately called his tenants to let them know the rental property mortgage was under a forbearance plan for the next 3 months.

Feeling that his situation and his tenants’ situation were not in a good spot and that the economy, in general, doesn’t show signs of recovery. He thought that he must do something to solve his rental house problems before his dreams of becoming a multi-properties landlord would end in a terrifying nightmare, then searching the internet, he found several local and national investors websites that he contacted, but only Better Off Home Buyers offered to him the hand he was looking for.

We were talking about the present problem many individual landlords are facing, especially those with non-federally backed mortgages. Also, during the conversation, we found out Mr. Allen had none or little information about tenant-landlords Oregon’s rules and laws.

We explained to Robert that according to Law HB4213 of Oregon.

Starting October 1, 2020, a landlord can give a notice to the tenant requiring that the tenant tell the landlord within 14 days if the tenant plans to use the six-month grace period to pay back any rent owing.” 

Tenants can notify their landlord that they plan to use the six-month grace period by text, email, letter, or verbally. 

Tenants will have from Oct. 1, 2020, March 31, 2021, to pay back rent from the moratorium period. During the repayment grace period, they will be required to pay their current rent as it comes due in addition to any back rent they may owe.

Eviction Note:

In the supposed case that by October 1st a tenant still is unable to pay rent. Landlords are allowed to do one of the following:

• Give a termination notice for nonpayment of rent, fees, utilities, or other charges 

• Charge a late fee or penalty for nonpayment.

• Give a termination notice without cause (unless the landlord has sold the rental to someone who plans to move in) 

• Start an eviction case based on nonpayment 

• Start an eviction case based on a termination without cause 

• File for noncompliance with a stipulated agreement in eviction court if the eviction was based on nonpayment or termination without cause 

• Report a tenant to a credit agency for nonpayment of rent or a late fee

A landlord has two options for giving a tenant an eviction notice for not paying rent:

1) If the landlord waits for eight days after the rent is due, then the landlord only needs to give the renter a three-day notice. The three-day notice must inform the tenant that he or she needs to pay the rent within three days or the landlord will begin eviction proceedings.

2) The landlord can also give notice to the tenant on the fifth day after rent is due. However, if the landlord gives the notice after only five days from the due date, the notice must give the renter six days, or 144 hours, to pay the rent due or the landlord can begin eviction proceedings against him or her.

Eviction And Foreclosure, Landlord, And Tenant Fear.

If By October 1st, Mr. Allen’s tenant can’t pay the rent, it will be the 4th month in a row that Mr. Allen doesn’t collect any money from his rental property, and the first month he wouldn’t pay his rental house mortgage. 

So, in a hypothetical scenario. Mr. Allen would fill an eviction case against his tenant. If everything goes ok and the Oregon courts are working at a normal pace, the actual eviction will take place in November. But November would be the second month Mr. Allen will be past due with his mortgage. 

Mr. Allen would get a default notice from his bank in November. If he continues with the same difficult money situation, he will be facing foreclosure by the end of the first 2021 quarter.

This is only a hypothetical scenario we discussed with our client, but that is a real situation many tenants and individual landlords are having today. It sounds like a hypothetical-reality contradiction but it is not. 

Millions of homeowners are at risk of losing their homes because of the COVID-19 consequences. 

Mr. Allen and Better Off Home Buyers Staff were analyzing some points on his particular situation:

  • Every day we heard that a vaccine or remedy for the coronavirus is in process and it would be fully developed and approved in not less than 18 months.
  • Without a COVID-19 vaccine, social distancing, and health regulations to prevent the massive virus spreading will be the rule for the next 2 years. This means that the production machinery will keep walking at a slow pace. This means no new jobs, no income.
  • FHFA and private banks and lender’s forbearance and deferred payment plans will expire way before the economy gets recovered.
  • Millions will be facing foreclosure if the government doesn’t work close to banks and homeowners to prevent an economic catastrophe.

At the end of our first conversation Mr. Allen stated:

“People will lose their homes and the banks will be bailed out.”

A Fair Solution For A Landlord-Tenant’s Unfair Situation.

Despite the money inconvenient situation created by the coronavirus hardship between landlord and tenant. Mr. Robert Allen assures his tenant is a good person, a hard worker, a very trustworthy and responsible guy.

“My tenant is another victim of this COVID-19 madness.” He said.

At Better Off Home Buyers, we have had clients with similar situations, where they believe their tenants are taking advantage of the coronavirus regulations issued by the FHFA and Oregon’s governor. In their opinion, tenants know that they are protected by emergency laws and are not wasting the opportunity to pack some money. On the other hand, homeowners and individual landlords have the same opportunity that a mouse has, enclosed with a hungry cat inside a box.

The forbearance, the deferred payment plans, and the potential loan modification are a trap set for banks, lenders, and corrupted politicians,” frustrated quoted Mr. Allen

We explained Mr. Allen our process and buying home criteria. Purchasing a tenant-occupied property is not an unknown activity for Better Off Home buyers in Portland. Through the years, we had dealt with hundreds of rental houses buying transactions.

On August 22nd, we went to Mr. Allen’s rental property to do an inspection. We met his tenants that are a nice family of four. They were cooperative with all we needed to check the house, and at the same time, we applied all the health authorities’ precautions to avoid contagious coronavirus.

The next day, we presented Mr. Allen with an offer on writing. He accepted it, and immediately our legal team started working on the proper house purchase documentation. On Sept 3, the day we are writing this post, Mr. Allen was paid with a check for the full amount of money his rental house represents.

For Better Off Home Buyers, is extremely important every person that somehow is involved in our transactions. We believe everyone must be treated with compassion and respect. Our team spoke with the rental house tenant, to not worry about looking for a place to move with his family. We offered to let him stay in the house for September, and October without paying rent. We signed a rental agreement for 3 months starting in November, so he has plenty of time to relocate his family.

The real estate market in Portland, Or. is going through unpredictable stages. A big number of homeowners could be facing ugly situations in a very short time. Selling your property may be a problem-solution if you act quickly.

Contact us by filling out the information form on this page or dial directly, (503) 212-9641.


Hi, I'm Scott Dalinger a real estate investor in Portland, Oregon. I focus on helping homeowners and rental property owners out of negative situations by offering cash for their property. I research and write about real estate on my business website.

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