Life as we knew it has changed forever. As we look back at today at some point in the future, we will remember COVID-19. The global pandemic made its mark in history. While we try to cope and live with this new reality, everything is in flux and changing by the minute. It is very possible by the time this article goes to publication; the information contained herein will be irrelevant. One fact will remain. The economic impact of this virus has been far and wide. All industries have been impacted and trying to figure out how to best move forward. There is no surprise the mortgage industry, that hadn’t seen lower foreclosure rates in a long time, is bracing itself for a spike in delinquencies and foreclosures.
Governor Newsom declared a state of emergency. Shelter in Place orders were put into place and all had to abide by social distancing. Businesses shut their doors and either sent employees home or laid them off. Some businesses asked employees to work from home. It will be no surprise when some of the businesses never open again. As more and more people face uncertainty, the economic impact will cause delinquencies. To get ahead of the curve and prevent evictions, Governor Newsom issued an executive order giving local governments the authority to impose eviction protections for tenants who will unable to pay their rent due to the coronavirus or a loss of income due to stay at home orders.
Renters are encouraged to contact their landlords as soon as possible. Open communication will be the key in moving forward. At the same time, landlords are encouraged to work with renters on creating a payment plan that is acceptable to both. Landlords will also have to contact their mortgage servicers if they are unable to make their mortgage payment due to loss of income from the rentals. We are all in this together. If we all cooperate and work together, we can get through this together.
(Correction: Gov. Newsom signed an executive order indicating statewide eviction moratorium hours after this article was written.)