Should I Defer Rent Payment Due to Coronavirus Sacramento Roseville Area? How About Mortgage Payment? What Are My Options?
Options Available
I'm sure you are aware of a myriad of concerns regarding Coronavirus Sacramento Roseville area! It's pretty crazy, isn't it? Our federal government is working hard to do what they can to help renters and homeowners. They do have some options but not as many as you might think. Even in the individual states, there is only so much the state government can do – and only so much the city or county government can do. There is no set solution for the nation, or the State of California – at least, not at this point in time. Each state can make their own choices on how to handle rent. For California, “Governor Gavin Newsom has issued an executive order making it clear that local governments can impose eviction protections for tenants who are unable to pay their rent because of the coronavirus or loss of income as a result of the outbreak.” But not all counties and/or cities have done this.
At this point, it looks like Sacramento County has restricted evictions while Placer County has not (yet?). The California Apartment Association CAA has some great Corona Virus resources to help all landlords. Click here to see a list of all the counties and cities who have put or may put eviction restrictions into place.
Here are some interesting articles that go into great detail on all of these topics:
Racing to Head Off Evictions and Foreclosures
Worried About Paying Your Rent or Mortgage in California?
Can’t pay rent because of coronavirus? Here’s how Sacramento-area eviction protections work
DON'T FORGET
However, even if you live where eviction protection is not in place landlords, you need to remember that just because you do not yet HAVE to help your tenant, compassion is definitely vital. And remember, they could conceivably take you to court later and even if the law wasn't yet in place, I wouldn't be surprised to see those lawsuits err on the side of the tenant. Not only that. How likely is it you will find a good tenant anytime soon. I know one house that's for rent near me that just dropped their rent down quite a bit, because we are all required to stay put! If you have a good tenant, it would seem wise to appreciate them and work with them if at all possible.
And tenants – don't forget, your landlord has a boatload of expenses with that rental, including mortgage, property tax, insurance and more! When you don't pay them, they might not be able to pay their bills. And you might all be in a world of bigger hurt a few months down the road when the house is in foreclosure! So be up front with them from the get-go, and do everything you can to pay that rent as soon as possible. Because the reality is, even if you live where there is an eviction restriction in place, you still HAVE TO PAY BACK ALL THE RENT and that will NOT be easy. So make sure your rental payment is at the top of your budget list of what gets paid!
And know that I'm not taking ANY sides because I'm on both sides of this boat! I have rentals and I am currently renting. 😊
Speaking of mortgages…
One Lender's Experienced Opinion
Some banks are planning to allow you to defer your mortgage payment up to 3 months. Here's a list of some. Not all, though, at least not yet. Maybe never. BUT! PLEASE! If you do NOT NEED IT do NOT DO IT! You take a big risk with this type of deferment – more than normal, probably, because this whole situation is beyond the norm and businesses are telling us information in a hurry. But what will happen when they actually sit down and write it all out, work it out with their own business needs, and the final paperwork is produced. Honestly, I'm not sure anyone knows right now. The best way we can look at it is to review what has happened in the past – like the 2008 recession/real estate market nosedive or 9/11.
Rodney Anderson is an excellent lender and resource and is definitely keeping his eye on the mortgage market situation coupled with Corona Virus Sacramento Roseville area. As those on my email list already know, he points out: [WAIT – gotta do the all-important disclaimers! These views are his personally (and the rest of the article are mine personally). NEITHER of us is prophets. We are making guestimates based on prior happenings and personal experience, along with researching various experts. PLEASE BE SURE to consult YOUR ATTORNEY, CPA, etc. for your own personal situation. (If this was a recording – I'd have them say it REALLY FAST like the TV. Well, no I wouldn't – I want YOU to be well educated, unlike most of the TV ads and shows. 😉 ) OK – back to Rodney's personal opinion…
If you are thinking about doing a forbearance on your mortgage payments. I just want to warn you that although they are saying you can call your mortgage holder and apply to defer three mortgage payments, they are not saying what impact it MAY have on your ability to get a future mortgages It is true that is will [probably] not affect your credit score but that is different than affecting FUTURE mortgage loans or refinance options.
Our hope is that they will not hold these times against our buyers, BUT in the past Mortgage Banks have always counted any sort of payment relief against buyers. These are different times today and I just want everyone to BE CAUTIOUS. If you are looking at a big long term savings by doing a possible refinance, then you have to be careful doing one of these. Most likely they are going to defer the payments to the end of your loan. But if it stops you from getting a lower rate down the road then it might not be worth it. AGAIN I am not sure that it will affect your ability to refinance. I am just going off what I have seen in the past and want people to consider everything before making decisions based off the current crazy times.
**If you are in need of the relief like so many people are then by all means call and get the help you NEED. That is why it is there. It does not affect me or my company at all. I always want the best for all my friends and clients. Stay safe and Healthy and please CALL or email me if you want to discuss any of this.
PLEASE NOTE I can't help defer your mortgage payments. You HAVE to call your current mortgage holder to apply BUT I AM HERE FOR ANYTHING ELSE YOU NEED. Rodney Anderson – Big Valley Mortgage – 916-223-2058
Not only all of that! Even if you get the deferment, YOU WILL STILL HAVE TO PAY PROPERTY TAX AND INSURANCE – and as we all know, that ain't cheap! Not only that! You might have as little as the 90 days OF THE DEFERMENT before the mortage is due. Or you might have two years. Or you might have til the end of the loan. Don't take anyone's word for it. READ EVERYTHING THEY GIVE YOU CAREFULLY and don't sign anything til you do! I'd even recommend having your attorney, CPA, etc. check it all over as well to be sure you don't miss something important. Because if you do miss something, it could mean foreclosure.
Great Sum-Up
As I was writing this article about Coronavirus Sacramento Roseville area, I checked Facebook for info I had marked to share with you and I spotted this post I shared on my real estate page that makes a great sum-up for everyone – IT IS WELL WORTH READING.
Remember, if you are still working or in another way are able to pay your bills, DO PAY YOUR BILLS! It's NOT WORTH IT to use the money on something else, even if important, and then end up in foreclosure due to unexpected events keeping you from getting caught up later! And the reason I'm being a bit emphatic about all this? A trusted resource told me she is getting phone calls from people she knows CAN pay their bills exploring the idea of taking the deferment and “putting it off to the end of the loan.” But what they don't realize it, it's probably NOT going to be put off to the end of the loan. There's a good chance it will only be two years or maybe less. YIKES!
My Opinion
Yes, I know, I've been scattering my opinion everywhere here. 😁 But just in case you skimmed as quick as I often do and missed it, I HIGHLY recommend NOT taking any deferments if you possibly can avoid it. Pay all your bills, keep everything in order. We don't know what things will be like when this all shakes out. But that should help you any which way. And the good news is that experts are still quite hopeful that as the economy rebounds, housing is set to help lead the way out. I'm hoping and praying that is true though only time will tell. But in the meantime, staying current is a good investment in many ways! HOWEVER, if you absolutely can't make the payments, BY ALL MEANS, apply for the deferment. THAT'S what it's there for. 😊
Kaye
P.S. Three quick things:
- Missing family? My family discovered the Marco Polo App (the app's pix is on the left.) You can do group video texts just like you do regular texts so you can video each other but not wake each other up if on different time zones (check your notifications) and right now, it is free. It's been a lot of fun chatting with my kids and grandkids. This virus led to a delayed visit with one set of sweeties and the app has been a big encouragement boost!
- Would you like to be on my email list? Just click here.
- If you have real estate needs and they can wait, that's the best option for you! And I highly recommend it. But I realize some of you might have real estate questions or even real estate needs that can't be put off. And if so, we're here to help you as best we can! Feel free to call or write me and let's discuss it. 916-768-0127 or KayeSwainRE@gmail.com 😊
