Eviction Moratorium

Eviction Moratorium Not Extended By Congress Before Going On Break

Gustan Cho Associates are mortgage brokers licensed in 48 states

This Article Is About The Eviction Moratorium Not Extended By Congress Before Going On Break

 August 2021 could be a crazy month for the mortgage industry. If you have been paying attention to the news, you know that the eviction moratorium expired for coronavirus relief for thousands of Americans across the nation. Congress extended the Eviction Moratorium at end of June 2021 stating that it would be the last extension and they stuck to their word.

The Biden administration has failed to extend the eviction moratorium. This has tens of thousands of Americans at risk of losing their housing during a scary resurgence of the Delta variant. The COVID-19 coronavirus pandemic seems to be every pivotal moment. Unemployment numbers are still high at a time when job openings are equally as high. Many blame the federal unemployment benefits for the job openings. These next few months will be a make or break for the pandemic. In this article, we will detail the eviction memorandum and what it may now mean for you and your family.

Eviction Moratorium Order Due To Coronavirus Pandemic

YouTube player

Back on September 1, 2020, the CDC or Centers for Disease Control and Prevention issued an agency order named the “Temporary Halt in Residential Evictions” to prevent the further spread of COVID-19. This order went into effect just a few days later and was extended through December 27, 2020. Since then, this halt in evictions has been extended numerous times. The CDC‘s latest order expired on July 31, 2021. Many thought this would get extended again, even though the CDC was very adamant on June 24, 2021 press release when they said this will be the final extension on the eviction ban. We find ourselves on the first business day since the ban has been lifted.

Eviction Moratorium Explained

The old eviction moratorium order protected tenants in the following scenarios:

  • Have used their best efforts to obtain government assistance for housing
  • Are unable to pay their rent due to a substantial loss of income from the pandemic
  • Are making their best efforts to make full or partial rent payments and;
  • Would become homeless or have moved into assisted living centers if they were evicted

In order to qualify for these protections, the tenants must verify they expect to earn less than $99,000 for individuals or $198,000 if filing jointly in 2020. Or if you are not required to report any income to the IRS in 2020 or have received a stimulus check pursuant to the cares act.

Failure to meet the above requirements and still receive these benefits could result in a penalty of perjury and may be subject to criminal penalties including fines and even jail times. While this order was in place, states can still prevent evictions and offer other tenant protections. This means if a tenant may not meet federal requirements, they still may meet State and local requirements. It is important to reach out to your local municipality for more information.

What Eviction Moratorium Means To Property Owners Of Rental Properties

It is important to understand the government-backed mortgage buyers Fannie Mae and Freddie Mac are not allowing landlords to evict tenants in multifamily properties until September 30, 2021. This will give those individuals and families a few more months to prepare.

Currently, there are only a few states with their own eviction holds. Currently, those states are California, District of Columbia, Hawaii, Illinois, Maryland, Minnesota, New Jersey, New York, Washington. Most of the states have only extended the protections a few weeks or a month. Meaning evictions are still on the horizon for all of the United States and those individuals and families need to be ready to leave their current homes.

Consequences And Result Of Ending Eviction Moratorium

YouTube player

Many Americans argue ending the memorandum is going to cause temporary pain, but it is all part of a long-term solution to get the economy back on track. Many Americans had issues with the program from the beginning. Mainly because the CDC did not require any documentation to ensure that the renter’s financial hardship was Covid related. Many landlords felt taken advantage of during this time. Now that the memorandum has expired, landlords may proceed with evictions. Landlords who violate any court orders are subject to a fine of up to $100,000, one year in jail, or both. This is a very serious time and safety is key, so we hope the local governments will step up to keep their citizens safe.

Millions Of Americans At Risk 

It is estimated that more than 3.6 million Americans are at risk of eviction now that the memorandum has ended. Many in just a matter of days. This is an extremely scary time for many families. Many landlords did not receive payments during the memorandum as the nearly $47 billion in federal housing aid sent directly to states has been very slow to make it into the hands of renters and landlords. The Biden administration has called on local governments to take as many steps as possible to immediately disperse funds, so evictions do not loom.

He also went on to say every state and local government should get those funds out to ensure we prevent every eviction we can.

President Biden sent a strong signal letting the eviction ban expire rather than challenging the supreme court ruling. Many Democrats responded by calling for their colleagues to extend the deadline and referring to this as a “moral imperative”. Protecting renters and also protecting landlords who are owed compensation.

Many Argue Wrong Timing On Lifting Eviction Moratorium Due To Surge Of Coronavirus Cases

Many lawmakers are upset about the simple fact that evictions are going to start in the middle of a surging pandemic as the rise of the Delta variant continues to spread. They called this a matter of public health. Unfortunately, the gap in politics between federal assistance and states distributing the money has been a cluster. Many landlords have not received any payments from their state and local municipalities., who simply held onto the money longer than they should. This shows a true divide in our government system.

Renting Apartment For Those With Eviction Record

Renting Apartment For Those With Eviction Record

These evictions could come at a heavy cost. Usually, when you fill out a rental application, there is a section asking if you have ever been evicted. With many Americans on the verge of eviction, obtaining a new rental may be difficult. Many of these landlords are tightening their renting requirements. This could make it difficult to rent an apartment or housing unit in the future. We hope that many landlords will look past evictions during the COVID-19 coronavirus outbreak.

If you are having trouble renting, this could be a great time to buy a home. Interest rates are at historic lows and inventory in the housing market is starting to make a comeback. While the housing industry is booming, this could be a perfect time to take advantage. If you want to know your mortgage qualifications, simply reach out to Gustan Cho Associates. This could be the end of relying on a landlord. Lending requirements are tough but not impossible to qualify for a home. For more information, you can call Mike Gracz directly on (800) 900-8569.

The eviction memorandum brings back more talks about affordable housing, the near future is going to be a rocky road. Many members of Congress recognize that homeownership in many areas of the country is out of reach for the average American. All we can do is hope for the best and help those in need. If you or somebody you know may need assistance obtaining a mortgage, please reach out to Gustan Cho Associates. Call Mike Gracz on (800) 900-8569 or send an email to gcho@gustancho.com. We are available to answer your mortgage-related questions.

Similar Posts

Leave a Reply

Your email address will not be published. Required fields are marked *