Evictions across the US could start happening soon, possibly causing a national housing crisis. an estimated 30–40 million people in America could be at risk of eviction in the next several months. Many property owners, who lack the credit or financial ability to cover rental payment arrears, will struggle to pay their mortgages, property taxes, and maintain properties.
The U.S. Census Bureau Household Pulse data shows a graphic indicating an estimated 101 million Americans in renter households, from this amount an estimated 60 million tenants would have limited or no eviction risk, and 40 million tenants at eviction risk by the end of 2020.
Starting Aug. 24, millions of renters in the USA who were protected from eviction by the CARES Act will no longer be shielded. According to an analysis by Statista, in Oregon, about 35% of tenants will face eviction.
Seriously delinquent borrowers — those late on their payments for 90 days or more but not yet in foreclosure — continued a pace of significant growth in July. Properties in serious delinquency rose to 2.25 million from 1.87 million in June and 444,000 year-over-year. While overall delinquencies keep decreasing as the economy reopens, many borrowers still face financial hardship and will miss payments.
In Portland, there are tenant-occupied property owners living check-by-check. Their rental house investment income covers up to 85% of their rental house expenses only. They now are having a lack of rental income, which means they could be delinquent in their second home mortgage payments.
What To Do if Your Tenants Can’t Pay Rent?
If you have a mortgage obligation on your rental property, and your tenants are suffering the COVID-19 hardship. I hope your mortgage is backed up by any federal housing agencies. So, you can take advance of any of the deferral payment plans.
Otherwise, you should be looking for assistance in getting the best approach to deal with your tenant’s situation, as well as the status of your mortgage loan.
In Oregon, House Bills 4204 and 4213 went into effect on June 30, 2020, during the Oregon Legislature’s First Special Session of 2020. Allowing homeowners to deferral mortgage payments until September 31, 2020.
If you can cover your rental house expenses during the epidemic, you are in a better position than hundreds of individual landlords in Portland.
Many landlords in Portland and across the USA are riding a wave of uncertainty. We have been in communication with some of them here in Oregon and California.
Their concerns are; first, Income: Many are running out their savings. Others have lost their job or business, so their income flow has been substantially reduced.
Second: Tenants: Tenant’s lack of income, or no income at all.
During the pandemic, tenants can defer paying their rent between April 1-September 30, 2020, the Oregon Covid-19 eviction moratorium law says. Landlords cannot evict tenants for nonpayment during this time. Tenants will have a six-month grace period (until March 31, 2021) to pay back the deferred rent.
What worries individual landlords is if beginning October their tenants could not, or won’t pay back the deferred rent amounts. Which would make them start an eviction process that would last a few months, adding more wood to the fire!
If your tenants can’t pay rent on time or eventually they would be unable to do the deferred rent payments, you have no other choice than assume all your rental house obligations yourself. Period.
Thinking about the actual and future individual landlord’s situation. Better Off Home Buyers had launched a comprehensive “buying rental homes program.” We are assisting dozens of desperate homeowners, preventing them from losing a lot of money, getting involved in unwanted legal processes, paying a high attorney and legal fees, and horrible headaches.
While a lease is a legal agreement between tenants and a landlord, the lease does not dissipate with the sale of a property. Just like easements and other covenants that are considered to “run with the land” the leases are tied to the property itself and not simply to the owner. This means that the lease stays “attached” to the house.
Better Off Home Buyers will buy your tenant-occupied property. Our team has the knowledge to walk you through the sale/buy process. You will be explained step by step of it.
Under the novel COVID-19 circumstances, if your tenants can’t meet their renter’s obligations. If you think the situation is getting worse and you are losing control of it, give us a call. We can help you.
Questions and Answers.
Q: Would You Buy My Rental House AS-IS?
Q: What About If my Tenants have Destroyed The Property?
A: Unfortunately rental house damage caused by bad tenants occurs often. Better Off Home Buyers have the means to evaluate the properties we have interest in and come out with a fair offer. Even if a home foundation or structure presents severe damage, still we can present a win-win offer.
Q: I Was on Default Before The COVID-19.
A: To protect Oregonians, Oregon and Federal laws have established temporary limitations on lenders being able to enforce default remedies on obligations secured by mortgages, trust deeds, land sale contracts, or other instruments.
There are no restrictions or impediments to buy and sell properties during the epidemic time. Better Off Home Buyers will purchase your rental house doesn’t matter if you are current or behind on mortgage payments.
Q: My Tenant’s Rental Agreement Ends in February 2021.
A: If your actual tenant’s rental agreement is current or not, we can buy your rental house and inherit your renters, in any case, we will proceed according to the law.
Q: My Tenant Survived The Coronavirus Infection. Can you Buy my Rental Home?
A: We are glad your tenant has survived this mortal disease, and thank you for disclosing this information, many people won’t do it. According to the CDC information, the virus is person-to-person transmitted, and it is highly recommended to provide deep exposed areas cleaning. Better Off Home Buyers will buy your rental house.
Q: During This Pandemic, When Would my Rental House Closing Sale Be?
A: It all is relative to specific circumstances. A home sale is no different. Our home buying process starts when a homeowner contacts us for the first time, after that contact, we set an appointment to see his house either physically or remotely. Usually, closing a home purchase lasts around 7 days. Sometimes as short as 2 days. But it depends on many factors, actually, specifically for a default tenant-occupied property, the closing could be more than 7 days but no more than 30. Again, It all depends on the circumstances.
Buy The Way!
While we are writing this post. We have closed a tenant-occupied home purchase of a property located in Portland. The property was a Lady investment home, who like many individual landlords are experiencing a hard time due to the coronavirus.
This Lady (We have not her permission to use her name yet) found us in early August while she was navigating the internet. At her rental house, while we were doing the home inspection, we could observe the poor care her tenants had for the house. She told us she was out of budget to pay for repairs or lawn maintenance, her tenants had stopped rent payments in April, and she knew about the Oregon Eviction Moratorium law
She told us that her tenants were disappointed because they noticed she was selling the property.
“They told me that they won’t pay a penny for rent during the time they were living in my house,” she said.
On Friday, August 7th she notified us of accepting our offer. Immediately our legal team started all the requirements to buy her rental house. On August 20th we handed her out a check for her rental house purchasing amount.
Close to 40 million Americans could be facing eviction in the months to come. It could trigger the worst housing problem we ever see in our country. Many individual Landlords are confronting their personal COVID-19 economic effects and their tenants struggle as well.
The federal and state governments and the health authorities are doing their best to stop the coronavirus infection spreading, and to maintain the national production machinery in the best working conditions.
The global economy has been greatly affected by the pandemic, but we have to do our best to keep going and make the best in every life situation.
Dealing with tenants and rental property expenses is not easy during this time. Better Off Home Buyers can help you if you need to sell your rental house.
We can buy your tenant-occupied property. Contact us filling out the information form in this page or dialing directly (503) 212-9641