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Explain how that would work. ok.. So, I can see mortgages being frozen.. executive order (Though that'd be something of a reach) that says no mortgages are due for.. 3 months or whatever. Taxes suspended for those three months? Because Joe Q Landlord still has to pay his taxes on the location that he's not getting any income from. He still has to send repairmen out for maintenance on it, with no money coming in. How does that work?
So, what about the power bills? Internet? Linemen forced to stay home? Can't go out to repair downed lines?
No money coming in to the power companies. So, even if they have employees that are forced to work.. Are they forced to work without pay?
Are you closing grocery stores? Pharmacies? Office supply stores? Home Depot and Lowes? Doctors offices?
Exactly what gets shut down.. What payments are frozen?
Most of the ideas of 'freezes' on rent and the like are horrid ideas.. Because unless the rent is forgiven, all it means is that someone has a massive bill they can't afford at the end of the free period and the landlord is still left holding the bag for providing a place to live to someone for three months free of charge.
I preferred what they did in France where unemployment was basically 80% of your normal pay. It wasn't 100% so you had some incentive to get back to work when you could but it was enough for most people to get by for a while without massive negative financial consequences. The downside is the increase in government debt. Still, I think it would have been preferable to what we did which also increased the debt by a ton. I'm worried that there doesn't seem to be a lot of transparency about which businesses got money and how much.
Most of the ideas of 'freezes' on rent and the like are horrid ideas.. Because unless the rent is forgiven, all it means is that someone has a massive bill they can't afford at the end of the free period and the landlord is still left holding the bag for providing a place to live to someone for three months free of charge.
Not to mention that we landlords still have to pay the mortgage, taxes, insurance, and HOAs on our properties every month. No one was talking about giving us a pass on these expenses, so without having the rent money coming in we are put at risk of defaulting on our loans.
Not to mention that we landlords still have to pay the mortgage, taxes, insurance, and HOAs on our properties every month. No one was talking about giving us a pass on these expenses, so without having the rent money coming in we are put at risk of defaulting on our loans.
Most federally backed mortgages were eligible to defer mortgage payments for several months. I still think addressing the income side was a better approach than pausing payments which would have had a ripple effect like you are describing.
Most federally backed mortgages were eligible to defer mortgage payments for several months. I still think addressing the income side was a better approach than pausing payments which would have had a ripple effect like you are describing.
Many banks were offering it, but I do not believe they were required to. But if I stop paying the mortgage, I stop paying into the escrow account which means I would be short when taxes/insurance came due. I have properties in neighborhoods that require me to pay HOA fees, and those were certainly not going to pause.
This does not even touch on the fact the repair costs are always on-going and in many cases cannot wait (i.e. leaks, broken HVAC, etc.).
Maybe a federal relief program for rent payers would be better, where people who could not pay rent apply to have the government pay their rent for them until they get back on their feet. Sort of an expanded HUD program.
Many banks were offering it, but I do not believe they were required to. But if I stop paying the mortgage, I stop paying into the escrow account which means I would be short when taxes/insurance came due. I have properties in neighborhoods that require me to pay HOA fees, and those were certainly not going to pause.
This does not even touch on the fact the repair costs are always on-going and in many cases cannot wait (i.e. leaks, broken HVAC, etc.).
Maybe a federal relief program for rent payers would be better, where people who could not pay rent apply to have the government pay their rent for them until they get back on their feet. Sort of an expanded HUD program.
I think it's just easier to address the income side through expanded unemployment benefits. Just top off unemployment to cover a set amount up to 90% of normal pay. I still think it was a mistake to not have a max benefit of some percentage of normal pay but I do understand the argument that doing that might have slowed down benefits.
On a personal note, my wife applied for and was approved for unemployment. She was in a situation where her hours were cut ~25%. The system didn't seem setup well for that kind of situation - the forms asked a lot of questions that only made sense if you had completely lost your job. I still don't think she has received any money even though she filled stuff out the same way as coworkers who did receive money. She has tried to call multiple times and inevitably gets disconnected after sitting on hold for hours. This event has really underscored that a lot of state unemployment systems were held together with dust and old bubblegum. We were fortunate that it hasn't impacted my income yet and I hope we continue to be fortunate in that regard.
Apple Festival in Hendersonville cancelled. Brevard July 4th Festival cancelled. If we don't start wearing masks and practice social distancing, students are going to be doing school from home again this fall and winter. Football season is still questionable too.
I think it's just easier to address the income side through expanded unemployment benefits. Just top off unemployment to cover a set amount up to 90% of normal pay. I still think it was a mistake to not have a max benefit of some percentage of normal pay but I do understand the argument that doing that might have slowed down benefits.
Honestly.. I'm OK even if it's to 100% pay. But not over that.
Now, that is a touch problematic when you're dealing with a server. Though.. I can tell you one thing.. Many servers don't report their true tips.. So, you base it off last year's declared tips plus pay.. And if they've been under-reporting their tips.. They're gonna wind up paying for that.
Apple Festival in Hendersonville cancelled. Brevard July 4th Festival cancelled. If we don't start wearing masks and practice social distancing, students are going to be doing school from home again this fall and winter. Football season is still questionable too.
No chance high school sports don't happen. You think Black Lives Matter protests got crazy?
No chance high school sports don't happen. You think Black Lives Matter protests got crazy?
I'm nervous. My nephew is a rising senior and at some point, I need to get down to see one of his performances (He's in the band).. I had asked them when the schedule came out for next year to let me know the best date to come down.. But.. That was all pre-holy crap times.
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