New Legislation Likely To Make Eviction & Foreclosure Bans The New Normal
As many have been fearing, eviction bans and foreclosure moratoriums could become the new normal. What does that mean for real estate investors?
Despite the real data suggesting that mortgage loan borrowers and renters are performing great, with few defaults, bans and moratoriums have continually been extended. Even despite being ruled unconstitutional.
Current layers of rulings seem to effectively make these bans run into at least 2022.
The Federal Disaster Housing Stability Act of 2021
This one new bill that is being pushed toward becoming legislation could drag out eviction bans and foreclosure moratoriums, and make them much more commonplace.
The bill aims to automatically trigger these bans any time there is a federal disaster declared. FEMA says a disaster can be declared for almost any reason, including storms, floods, fire, high water, etc.
Other talk around this topic raises concerns over what could be called a disaster in this context in the future. Could it be poor tenants getting a flat tire and having to pay for a car repair? What about high rents, the eviction itself, homelessness, or climate change?
How long would those bans run for after an event? It is easy to see how they could run consecutively forever.
Ironically, around 90% of the taxes collected to finance relief funds for renters and landlords have not been paid out. They seem likely to continue to be diverted into other political pet projects instead.
What Permanent Eviction & Foreclosure Bans Mean For Investors
While on one hand it seems unfathomable that this has happened to this extent already, investors need to embrace this possibility. At least that it will frequently be the new status quo. You simply won’t be able to count on evicting or foreclosing.
The first and most obvious step for most investors and real estate businesses is to switch to the wholesaling model. Be in and out and paid. No problem.
Find end investor customers who will be high volume buyers. Flippers continue to do well in this hyper inflation environment. Though there are landlords with a track record through covid lockdowns and recent bans. Keep an eye out for those switching to short term rentals, and other creative options to stay ahead of this, and to keep up their volume long term.
Top Funding News
|
|
|
|
|
| Linked In | You Tube | Google+ |
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
- Frank Olaitan, Real Estate Investor, MD
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
- T. A. Davis, Investor, NJ
"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA
