[quote=temeculaguy]If the courts allow counties to set their own timeline when to resume evictions, San Francisco and Santa Monica might wait 6 more months. Landlords not collecting rent and unable to evict will become distressed especially if they have a mortgage on that property. It may present a buying opportunity more so in some counties than others, from an investor point of view. Whichever county or city waits the longest to resume evictions will be less favorable to investors and REITs if the next county over is evicting non payers. It might be the next fire to run into, who knows, those Santa Monica rentals might have a window where they are at a discount, not a crash. Or it may be a disaster and they might like the new “affordable housing” but I think it will be a short window.[/quote]
That’s a good point. I’m just curious though how much of this mortgage forbearance will take place and how much of the property tax no penalty will materialize.
For example, let’s say someone stops paying rent. Fine. Landlord stops making mortgage payments and asks for a forbearance. Also stops paying property tax, which in some.
counties is now allowed without a penalty. Isn’t this sort of just like passing the buck along back to the state government and banks?
I guess it sucks for those landlords that count on the cashflow exclusively for income and have no other source of income.
BTW, I don’t think this problem is just CA. It’s going to be a problem for multiple states… I see it a bigger problem for states and locales that that depend on a specific industry that was wiped out by covid, particularly a lopsided local economy completely dependent on indoor leisure activity….if not now, later.
