Being a landlord is a demanding job. It is necessary to deal with dozens of small and large details every day to be successful.
The measurements taken by the CDC, the federal and the state governments to protect the population from the COVID-19 hardship have produced a severe economic impact that has been slapping individuals, businesses, and the Americans’ peace of mind.
Housing laws in Oregon protect tenants who can’t pay rent from being evicted but have in total isolation landlords. Small landlords across the United States have low or nothing of protection from the authorities, and therefore they will have significant losses.
On August third, 2021, the CDC signed, “A temporary halt in residential evictions in communities with substantial or high levels of community transmission of COVID-19 to prevent the further spread of COVID-19.”
The new extension deadline is October 3, 2021, and targets counties with high levels of coronavirus disease transmissions. According to the covid-data-tracking map, about 90% of Oregon’s territory is at high risk. The new extension will probably be the last nail in the coffin of many landlord’s investments.
As a consequence of the COVID-19 virus prevention rules, Mom-pop and small landlords have been mere bystanders with no power to regain control of their rental properties. Some landlords that have contacted our offices, express their frustration saying that in their opinion, “the law allows and encourages tenants not to pay rent”.
The nationwide help for tenants and landlords announced by the federal government has many nooks and crannies, creating a delete in the distribution of funds. In Oregon, about 20% of the money has been received for the landlords that have requested help.
Landlords Screwed Up By Their Tenants.
The moratorium on residential evictions for non-payment has been issued to protect renters during the pandemic struggles. Executive orders and CDC regulations prevent tenants from being evicted during the pandemic. Although the intentions are to prevent the spread of the coronavirus, many tenants seized it for profit. Some landlords have informed us that their tenants falsely claim they were unemployed or on furlough.
In the Expert’s opinion, “When the moratorium on evictions comes to its end. Tenants who were unable to pay rent will simply move out without paying back a penny.”
The frame time to resume rent payments and the missed months has been updated many times. Making way bigger, the critical economic situation of homeowners and small landlords. It makes experts predict that people will not pay their rent, even if they make enough money for it. Struggling landlords will be their lender’s prey unless they encourage themselves to take measures to improve their situation.
Recently, an independent landlord contacted us saying he owned a single-family rental house in Portland. A month after the coronavirus broke out, his tenant called him to notify him that he was affected by the pandemic. He had lost his job, and it was impossible to pay rent. Our client was renting his property for $ 1850 monthly.
This landlord called us right after the Oregon government announced the eviction moratorium had been extended to June 30 of 2021. He was concerned because his tenant claimed has experienced the same economical situation, and all indicate the tenant will continue struggling to meet rent payments in the months to come.
Using this landlord problem as an example, we calculated the total of money our customer may lose up to June 2021, as follows:
13 months rent X $1850 $24,050
Eviction process $800
Property taxes $2,500
Home repairs (assuming light damages) $9,500
Waiting time for a new tenant (2 months) $3,700
Total loss $40,550
Our client inherited the property ten years ago. Having into account the nightmare he has living because of his tenant’s inability to pay rent, he manifested his intentions of selling his rental property to us. The property has been occupied for three years. Before the pandemic, the tenant paid the rent a few days late, only on a couple of occasions. But due to the current situation, the landlord stated that he was convinced his tenant was taking advantage of how generous Oregon and federal laws are with tenants.
A couple of days after this landlord contacted us, we were visiting his rental property. We were allowed by the tenant to conduct an inside and outside inspection of the house. Right after the inspection, we present the landlord with a writing non-obligation offer. Just three days went by, and we were contacted again by the landlord, this time to communicate his satisfaction with our proposal and to say he was ready to move up to the next step.
The home buying process lasted just seven days. The landlord received the cash for his rental property, the tenant got the opportunity to keep a place to live for a few more months, and Better Off Home Buyers got the satisfaction of having helped people in need.
Homeowners financially affected by the coronavirus hardship with mortgages covered by the CARES Act are subject to an initial mortgage tolerance of 180 days. They can request another 180 days of clemency extensions if it is needed.
The homeowners without federally backed home loans and financially impacted by COVID-19 should contact their lenders for assistance. Many of them find out that only a handful of lenders are willing to work with homeowners. According to customer testimonials, most banks have turned down applicants for mortgage forbearance without a reasonable explanation putting homeowners at risk of foreclosure.
Some lenders grant a 90 days forbearance plan to conventional loan homeowners, but at the end of the forbearance period, the homeowners are disqualified for an extension. Again, without explanation. The options for these non-federal-backed desperate homeowners and small landlords are either a foreclosure path or selling their properties as quickly as they can.
We receive emails and phone calls from single-family homeowners and small landlords every day. The pandemic’s tremendous impact on the economy has devastated them. So, they see it as an option, selling their properties.
At the time we are publishing this post, dozens of hundreds of small landlords across Oregon have not collected a single penny from their rental properties for more than 15 months. For those who have a federally-backed home loan, a 360 days mortgage forbearance plan won’t save them from disaster. The worst situations are facing those who have a conventional home loan, they are at the lender’s mercy. For this reason, many homeowners and landlords have decided to sell their houses before it is too late.
With a Mortgage Forbearance Plan.
Requesting a mortgage forbearance plan for a rental property loan differs from a residential one. A rental house is an investment. Since getting a forbearance plan for your home loan, you just need to say you are struggling because of the pandemic. Otherwise, to obtain mortgage forbearance on the rental house, you must submit an application supported by documents. Banks will take their time to approve the request or reject it.
In general, private lenders just approve three months of forbearance, and extensions are rare. If a landlord with a mortgage loan has difficulties making mortgage payments, there are big chances he defaults and eventually faces foreclosure.
In today’s sanitary and economic conditions, owning a tenant-occupied property is one of the hardest things to do. Many people have lost their jobs, businesses, and the ability to earn money. In Portland and other cities across Oregon, the demonstrations and thousands of protesters have destroyed the beauty and peace of some of the most beautiful cities in America.
If conditions remain the same, small landlords could not keep their rental properties. Foreclosures and abandoned houses will abound in Oregon’s real estate market.
Is a fact that some landlords are looking for a better solution to avoid future headaches. Many have contacted us to inquire about our home buying process. We gladly have helped some of them during 2020, as 2021 as well. We will keep working hard in the years to come to provide an excellent service to our clients.
Landlord Without a Mortgage Forbearance Plan
Conventional mortgage loans are those non-federally-backed loans. Typically, these loans require special treatment from lenders to be qualified as a beneficiary of a mortgage forbearance plan. During the pandemic, we have received information where In many cases, lenders have rejected conventional loan holder applicants without explanation.
Mr. Frankie Small came to our offices in Lake Oswego to get information about our home buying program. He owned a well-located rental property in Bethany. His tenant, a restaurant manager of one of the most visited restaurants in downtown Portland lost his job. After the first Oregon lockdown order, the restaurant reopened to sell to take out only. With a few employees, Mr. Small’s tenant was able to sustain the restaurant business at flote. The place was just hanging there until a Saturday night, when violent demonstrators broke the restaurant doors, looted, and burned down the building.
By the end of November 2020. Better Off Home Buyers purchased Mr. Small’s rental home. As usual, the home buying process was quick and clear. Additionally, we include the needs of Mr. Small’s tenants into the home-buying deal. It is important that everyone involved in a home purchase-sale transaction be a hundred percent satisfied for our company. When we purchased the property, we negotiated with the tenant to stay living in the property for a couple of months without paying rent. Additionally, we provided the necessary for him to move out with his family.
The Solution. Better Off Home Buyers
2020 is a year to forget or to recall forever. COVID-19 has been the start of many changes that will remain in our lives for many decades to come. To eradicate the virus, we had compromised the economy, our families, and the traditional way of living in our country.
We Americans are well known as hard-working people. Any immigrant that steps on our soil falls in love with our traditions, and soon becomes one of us. A free human being pursuing happiness and the American Dream.
But all dreams have a price to be paid. Sometimes circumstances act out of people’s control, but that is part of life. The key to success is not to give up. For instance, if one fails, just he needs to get up, shake it up, and hit the road again. The goal is just a few steps ahead!
Nationwide, we are struggling with the pandemic. Many lives are gone forever, and many more will be gone until the vaccine can defeat this mortal virus. But in the meantime, we must keep going, we must take precautions and follow the recommendations of the authorities to prevent the virus from spreading.
Unemployment has reached record levels, people have lost their jobs and are struggling to meet their basic needs. But fortunately, those numbers are decreasing. Little by little, we are getting used to the new reality. However, for many people, the damage is done.
When the situation gets most difficult is when the head has to be colder.
Every problem has its solution. In the area we work, we are in daily contact with a lot of people that are going through difficult moments. Nobody was expecting a pandemic and its associated negative aspects. There is no doubt 2020 was a different year. For hundreds of thousands, the personal economy is a problem growing bigger and bigger, even in 2021.
There is a general sense that the CARES Act does not protect all homeowners and small landlords equally. Those with non-federal-backed mortgages have to go under more complex requirements to be mortgage forbearance approved. Many of them just get a rejection for an answer. Thus, small landlords and homeowners who are having a hard time keeping their properties have not another way out but selling their houses.
According to their testimonials, the majority of them couldn’t sell their homes throughout the regular real estate market. They find out that to sell a property on the real estate market, it has to be issues-free, otherwise, no real estate agent would compromise to sell it. Many people have decided to sell their residential or rental houses because the crisis pushes them to do so. Lack of income is the factor affecting more people in Oregon and the United States.
We always have the same answer to their questions, “Better Off Home Buyers buy your home AS-IS.”
When the third quarter of 2021 is about to end, and the ban on evictions has expired, some homeowners are behind payments, others have a mortgage forbearance plan that can’t accomplish, pre-foreclosure, or a foreclosure process.
Many small landlords with only one rental property haven’t collected rent payments for several months. We are a professional home buying company with years of experience purchasing properties in Portland and across the nation.
Contacting us is easy, just fill out the information form on this page or dial directly our phone number. We will contact you back in less than 24 hours. Then, we will schedule an appointment to visit your property. Visiting your house wouldn’t take more than 30 minutes. Then, we will present with you a win-win offer.
Our selling-purchase process takes about 7 days, sometimes less, but every transaction is different. Our home purchase process is fast, transparent, and easy to understand.
For more information, please contact us. We are happy to help you.