San Diego Landlords Get Screwed
*Update San Diego just extended the eviction/foreclosure ban until the end of September.
I wrote about this situation some time ago, and I had a very easy solution at that time that would be equitable to all parties involved both landlords and tenants. Unfortunately our liberal California politicians, obviously felt it was much easier and cheaper just to take other people’s property. Now, this does not mean that they still cannot implement my original plan. Rather than get into all the details here if you’re interested check out this link to my prior article about the situation: https://www.brokerforyou.com/brokerforyou/california-eviction-and-foreclosure-bans/
Once again I will state I sympathize with all those who are suffering financially because of the coronavirus pandemic. But, this should be directly addressed by the state of California through equitable means to all those involved.
I’d also like to say that many argue that landlords are getting relief from mortgage lenders during this period of time. Well, if you research the subject this is only a half truth. Yes, mortgages backed by Fannie Mae or Freddie Mac are very easy to negotiate some forbearance on late fees and payments. But, other mortgages not backed by the government are not obligated to make any changes to their mortgage agreements. Really, it doesn’t matter whether your mortgage is backed by the government or not because, personally, I have yet to hear that any mortgage lender is forgiving payments! Sure, they’re waving late fees and accepting partial payments and even allowing balance is not paid during this time to be added on to the principle of the mortgage.
So, when all is said and done and maybe the moratorium on rents is lifted at the end of the year or the middle of 2021, if the landlords have not yet lost their property, they will still owe much more on their mortgages than they did before these bans and they may have to try to track down tenants who finally leave but have accumulated easily over $10,000+ in past-due rents.
Do you have any idea how expensive it is to hire a lawyer to try and track down a tenant who owes back rent? Plus, even if successful in tracking down a tenant and if they are not working what are the landlords to do to collect their past rents?,
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