patrick.net

https://patrick.net/post/1333877/2020-07-15-real-estate-to-soar
Wait, how do theses two things jive?

The troubling thing is at the moment at the end of the forbearance, which could be up to something like 12 months, is all the previous payments are due. I'm sure they will change the law where they will just tack the payments on the end of the mortgage because who is going to go from forbearance to paying 10's of thousands of back payments. They will do whatever they can to keep foreclosures low. If they don't change anything, ooof.... won't be good for housing.

Soaring argument to me is that rents have exploded in recent years, people want space now so they will trade up, fed print trillions where else are you going to protect wealth, Gov will never let foreclosures soar again aka 2008, they will pass laws to prevent that. Maybe vaccine too, although I dont think we will ever have one.

California suburb values will be temporarily propped up by demand from the urban refugees. Then???

The reason mortgages are in forbearance because banks voluntarily offered it. My friend took it on his primary and 3 rentals. He then took the money and threw it in the stock market during the drop in the recent months. It was a 6-month forbearance, but the bank may extend it to 12. The forbearance amount will tack on the back end and extend the maturity date 6 or 12 months out. It’s like getting a cash out in installments without any fees.

I didn’t accept the forbearance offer in fear there might backlash on the back end when I go to get a new mortgage or refinance, but the bank assured me that wouldn’t be the case. However, I am not taking any chances.

E-man says

the bank assured me that wouldn’t be the case. However, I am not taking any chances.

You don't trust the bank?

Onvacation says

E-man says

the bank assured me that wouldn’t be the case. However, I am not taking any chances.

You don't trust the bank?

It’s not so much with the current lender, but more about looking forward into the future when I go to refinance or obtain a new loan from another lender, there’s a high chance the forbearance remark will show up on my credit report. I don’t think it would reflect well so there’s no reason to risk it.

E-man says

My friend took it on his primary and 3 rentals. He then took the money and threw it in the stock market during the drop in the recent months. It was a 6-month forbearance, but the bank may extend it to 12.

I don't get it: if he needed the money why not simply draw from the HELOC?

by: Raquel Martin

Posted: Jul 16, 2020 / 04:32 PM CDT / Updated: Jul 16, 2020 / 04:41 PM CDT

WASHINGTON (NEXSTAR) — With protections designed to halt some evictions and foreclosures set to expire in coming weeks, experts on Thursday urged Congress to take bolder action to prevent a likely housing crisis.

Millions of homeowners and renters have been struggling to make their monthly payments as coronavirus mitigation efforts have shut down businesses and put people out of work. A recent survey found 1 in 3 Americans may not make their housing payment this month.

“If we don’t move quickly then we’re going to be in for a huge, huge problem,” Donnell Williams of the National Association of Real Estate Brokers said during a virtual congressional subcommittee hearing Thursday. “It’s a critical time. It’s time for action.”

“The worst is yet to come,” Marcia Griffin of Home Free USA agreed.

They urged lawmakers to pass more aggressive protections to keep Americans, particularly members of minority groups, in their homes and ensure all borrowers have affordable ways to replay ballooning debts.

“How do we get to bailing out the airline industry before we look out for the homeowner?” Williams demanded.

Democrats want to extend the national ban on evictions and foreclosures from the current three months — set to expire next month — to one year and give homeowners more time to file for forbearance.

Rep. Joyce Beatty, D-Ohio, also said lenders must do more to ensure eligible borrowers know what their options are.

“I’ve gotten calls, dozens of calls, and they’re confused about what the law says,” she said.

Republicans pushed back.

“Different homeowners face different difficulties and a one-size-fits-all (solution) may not be better,” Rep. Andy Barr, R-Ky., said.

He argued Congress should focus more on jobs rather than housing mandates that he said could be damaging.

“Nothing can replace getting people back to work and getting kids back in school so people can take care of their mortgage obligations,” he said.

The current protections help 1 in 3 homeowners.

The proposed extension of those protections are part of a $3 billion coronavirus aid package that Democrats put forth and Republicans have consistently rejected. The GOP has not proposed an alternative package. Democrats say time is running out.

https://www.wsj.com/articles/eviction-looms-for-millions-of-americans-who-cant-afford-rent-11594891802

WASHINGTON—Millions of Americans who have missed rent payments due to the coronavirus pandemic could be at risk of being evicted in the coming months unless government measures to protect them are extended, economists and housing experts say.

Nearly 12 million adults live in households that missed their last rent payment, and 23 million have little or no confidence in their ability to make the next one, according to weekly Census Bureau data.

About a third of the country’s renters are protected by an eviction moratorium that covers properties with federally insured mortgages. That expires July 25. Many renters are jobless and depend on supplemental weekly unemployment benefits of $600 that are due to end on July 31.

A number of cities and states have broader protections that will remain in place longer. Boston has banned evictions from public housing through the end of the year. Pennsylvania recently extended its moratorium against evictions for nonpayment of rent until Aug. 31.

TrumpingTits says

What HELOC? Is it stated that his friend had one set up before the pandemic?

He has multiple properties but no HELOC set up at any of them? This is weird.

TrumpingTits says

FuckCCP89 says

He has multiple properties but no HELOC set up at any of them? This is weird.

Why? We don't know what his particular financial needs/situation are in order to assume he would want/need HELOCs.

Doesn't the H stand for home as well? You can get commercial lines of credit against rental/commercial property, but HELOC's I thought we for primary residences only? Never leverage your primary home outside of the mortgage itself. If you want to do home improvements or invest in something else, save money. Shit can go sideways real quick as we're seeing now. You don't want your home tied up in anything.