Wow, I thought that the Moratorium was going to end at the end of June, But NO, it is extended until July 31, 2021.
Why is it extended? I thought this pandemic was over and everyone is allowed to celebrate the 4 of July weekend. It was extended possibly because the States and localities need more time to distribute the $46 billion in emergency rental assistance provided by Congress in the American Rescue Plan Act of 2021 and the December 2020 COVID-19 relief package, said Diane Yentel, president and CEO of the National Low-Income Housing Coalition, an advocacy group based in Washington, D.C. The money is aimed at addressing the $50 billion in rent arrears that tenants accrued during the pandemic, according to the housing coalition’s estimates.
As CDC’s Eviction Moratorium Ends, States Prepare for Flood of Cases
More than 7 million renter households—predominantly households of color, people with disabilities, and other marginalized groups—were behind on rent last month, and nearly half are at risk of eviction in the coming months, U.S. Census Bureau data shows. For many, the only protection is the CDC’s moratorium that has been in place since September, which can provide tenants more time to seek rental assistance.
While there are billions of emergency dollars available, many renters have struggled to apply. And in many states, officials have been overwhelmed by requests and slow to give out help. Property owners and landlord associations have challenged the constitutionality of the CDC’s moratorium in state courts, while tenant and fair housing advocates want the federal agency to extend it even further.
Is This Legal?
Moreover, it is questionable whether Congress itself could suspend residential evictions and, hence, could have delegated that authority to the CDC. Although the Supreme Court has held that similar moratoriums imposed by the States are constitutional, Congress never suspended evictions nationwide before the COVID-19 pandemic. And a federal district court in Texas has held that it lacks the power to do so. Congress’s power to regulate interstate commerce extends to intrastate economic activities that “substantially affect” interstate commerce. But the Texas court held that the Eviction Moratorium does not regulate economic activity because it only restricts evictions. Since it does not suspect the requirement that the tenants continue to pay rent, the Moratorium does not have “any effect on the parties’ financial relationship.” The court also noted that the Eviction Moratorium primarily regulates real estate, which is “inherently local” and traditionally governed by state law.
The district court, however, did not enjoin the CDC from enforcing the Eviction Moratorium, so its decision does not extend beyond the parties to that case. Additionally, the CDC has appealed that ruling to the Fifth Circuit.
What is the process for extending?
You need to qualify and provide notice to the landlord. (Click Here for the Complete form.)
What can a landlord do?
As of now the landlords must suffer and keep the property in working order. Which means maintenance/repairs and payments on the mortgage if any. The landlord is prohibited from eviction and can face penalties, and imprisonment if they evict.
The renter must still agree to the following:
1. Unless I come to an agreement with my landlord, I am still responsible for rent, back rent, and any fees, penalties, or interest under my lease.
2. I must still follow the conditions of my lease.
3. Unless I come to an agreement with my landlord, if I fail to make my required payments, I could be evicted when this temporary halt of evictions ends.
4. I can still be evicted for reasons other than not paying rent or not making a housing payment.
Now, what is going to happen after July 31?
There is a possibility that the CDC could decide to extend the eviction mortuaries again. Possibly till January 1, 2022.
— How many landlords are behind on their mortgage payments? Are they in foreclosure?
— When renters are evicted where are they going? Homeless?
— Will this crash the real estate market?
My Personal Opinion. My crystal Ball Says.
In my 45 years in real estate and the mortgage business, I have never seen this before. Usually, you can make predictions based on history, but I cannot find any correlation to this disaster. This is new. There are other factors to consider when this ends in July.
Stock Market Bubble – market is in uncharted territory, overvalued.
Real Estate Bubble – I’ve seen this bubble before many times, and it does not end well.
Cryptocurrency Bubble – A lot of cash has flown into Crypto and it now in a bearish decline.
Inflation – The target rate by the Fed is 2% but we all know it’s more than 2%. The fed is not worried since they call the inflation transitory. This means it’s just for a few months and will return to normal – So do not worry be happy?
So, what is going to happen?
Here are my predictions of what going to happen in the next 6 months. These are just my thoughts based on my 68 years of experience.
1. Stock Market will crash and lose 80-90% of its value.
2. The real estate market will crash with 1,000’s of foreclosures.
3. Homelessness will be everywhere.
4. Crypto will go to zero once everyone realizes that there is no value.
5. Biden Administration will pump trillions of dollars into the economy to keep the crashes from happening. They will run the printing press to the max, but it will be too late which will cause the following.
6. Value of the dollar will drop and drop along with all world currencies which will do the following.
7. Global Currency to replace all world currencies.
Ok, hope I did not scare you too much. Will this happen? Maybe. But as an old boy scout, the motto is: always be prepared. You are always in a state of readiness in mind and body to do your duty.
Are you Prepared?
Level 4 Funding LLC
Who is this Dude? Dennis brings with him substantial experience in residential real estate. Dennis has extensive experience purchasing, renting, and selling numerous homes over the past 45 years. His first purchase was a property in California when he was 18 years old. Dennis graduated from California State University Pomona with majors in Computer Science and Business Management. He is a Licensed Mortgage Broker, Licensed Mortgage Originator, Licensed Real Estate Agent, Licensed Insurance Agent Certified Sort Sales Specialist (CSS), Certified Negotiator (CNE), and FAA Licensed Private Pilot.