The Team at CCM Finance Explains the Nuances of Eviction Moratoriums and Mortgage Payment Def

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The team at CCM Finance explains eviction moratoriums and mortgage payment deferments as well as how they might affect real estate investors.

MINNEAPOLIS - eTradeWire -- The coronavirus pandemic – along with business closures and restrictions – continues across the country. Many renters are either unemployed or only working a fraction of their normal hours, which has put a great deal of strain on their budgets. As such, eviction moratoriums are in place across the nation, and landlords are struggling to collect rent. CCM Financ, a leading provider of real estate investment financing, explains the impact the moratoriums and deferrals might have on investors.

The order, imposed by the Centers for Disease Control and Prevention, prevents evictions until December 31, 2020. In order to qualify, tenants must first obtain a declaration they can print from the CDC website, sign it, and provide it to their landlords. They must also meet five simple qualifications:

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- Tenants must do all they can to secure government rental assistance before declaring themselves unable to pay.
- Individuals must earn less than $99,000 and married couples must earn less than $198,000.
- They must prove they have lost a substantial amount of their household income due to inevitable layoff or extraordinary medical expenses.
- Tenants must make payments as their circumstances allow, even if these are only partial payments.
- They must prove that they would be homeless, would pay more for rent, or would be at risk of illness from being close to others if they were evicted.

Though much of this is subjective and seems to favor tenants, the way the moratorium is being carried out depends on the location. The moratorium is designed to prevent property owners from even initiating an eviction process, but some states are allowing the cases to proceed up to the point when the tenant would be removed. In some states, the CDC's moratorium is viewed as unconstitutional and judges are still requiring tenants to pay rent or move out.

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Property owners also have some protection, but once again, this depends on the location and the financier. Some banks are providing property owners with mortgage payment deferrals, which simply allow the property owner to "skip" payments and add them to the end of the term without any additional interest penalties. The qualifications for this vary, but in most cases, the landlord must be able to prove his or her financial hardship, as well. Many have taken the declarations from their tenants directly to the financiers in order to obtain such deferrals.

To learn more about real estate financing in general, or to obtain financing for a new investment project, visit CCM Finance's website at

CCM Finance

Source: CCM Finance
Filed Under: Real Estate

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