PSA: Threatened with Eviction during COVID-19? Pro Bono help in DFW

2,640 Views | 20 Replies | Last: 5 yr ago by aggiebymarriage88
reed13
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2:05p, 4/6/20
AG
Hey y'all,

I know that this is a very challenging time for all of us and some have been hit especially hard with layoffs and furloughs. With all of the layoffs and furloughs that have happened, I know many are struggling to make ends meet and to make their rent payments. If you have been threatened with eviction or received an eviction notice during this crisis, make sure you know your rights during this time.

This morning, the Supreme Court of Texas extended its statewide moratorium on eviction proceedings (except in cases of violent tenants and tenants who are a threat to others' safety) until April 30th. Furthermore, if you live in Dallas County, there is a county-wide moratorium on eviction proceedings until May 18th. Similarly, Tarrant County has indefinitely halted evictions until further notice. If your landlord has ignored these orders are served you with an eviction notice, please know that attorneys are standing by to help.

In Dallas, Mark Melton, who is an attorney with Holland & Knight, has organized a coalition of attorneys willing to assist you pro bono if you have received an eviction notice and are worried about keeping a roof over you and your family's heads during this trying time. As an attorney, I emailed Mark and his group this morning to volunteer my time and expertise and I encourage other DFW attorneys on TexAgs to do so well as we try to "do unto others" during this uncertain time.

If you have received an eviction notice from your landlord, please email the address below for a free eviction consultation.

DallasEvictions2020@gmail.com

Visit the Dallas 2020 Evictions' website as well for additional landlord/tenant resources: www.dallasevictions2020.com

Please forward this information to anyone you know who has been threatened with eviction in DFW during the Coronavirus crisis.

Thanks and Gig' Em.
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2:25p, 4/6/20
AG
So many questions about tenant / landlord arrangement:

1. Are mortgages postponed along with rent?
2. Do tenants have to pay the money, eventually?
3. If tenants are gainfully employed do they still get to skip payment?
4. I thought super-charged unemployment benefits and stimulus gave people money for rent?
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JR Ewingford
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2:30p, 4/6/20
Ya. So my tenants can live in there and not pay but I still have to pay the mortgage? What a cluster fk.
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reed13
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In reply to Premium • 2:37p, 4/6/20
AG
Premium said:
So many questions about tenant / landlord arrangement:

1. Are mortgages postponed along with rent?
2. Do tenants have to pay the money, eventually?
3. If tenants are gainfully employed do they still get to skip payment?
4. I thought super-charged unemployment benefits and stimulus gave people money for rent?
1. Under the CARES Act, federally-backed mortgages (Fannie, Freddie, FHA, VA, etc.) can be deferred for up to 180 days. Contact your Lender to arrange this.

2. Rent is not "cancelled," rather eviction proceedings are postponed until April 30th (and that may be extended further) statewide and until at least May 18th in Dallas. If you can pay rent, then please do so, because the eviction moratoriums do not technically preclude landlords from seeking evictions after the expiration of the respective moratoriums.

3. No one "gets" to skip payments, but folks can't be evicted right now if they do miss a payment. I believe the thinking in these orders is that many people need help right now and homelessness would worsen COVID-19 issues, so we are not going to allow eviction proceedings at the moment.

4. I am sure that is the thinking with the CARES Act. However, as you probably know, people have not yet received their stimulus checks and April rent has already come due for most tenants, so it hasn't helped anybody with that yet and landlords still could have unlawfully posted eviction notices.

I know many folks, especially bartenders and folks in the food service industry, who are typically model tenants, but who have been furloughed and can't work right now because of the coronavirus. Lots of folks need a little help right now and that's what this is. I am not here to judge someone who can't make their rent right now, just offer counsel and let folks know what their rights are.
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Orlando Ayala Cant Read
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In reply to Premium • 2:37p, 4/6/20
AG
Premium said:
So many questions about tenant / landlord arrangement:

1. Are mortgages postponed along with rent?
2. Do tenants have to pay the money, eventually?
3. If tenants are gainfully employed do they still get to skip payment?
4. I thought super-charged unemployment benefits and stimulus gave people money for rent?


I do believe if they were going to put a moratorium on evictions, the fair thing to do is put a moratorium on mortgages as well. That said, that would be a really hard thing to pull off logistically I think but I also think its possible if intelligent qualified people got together and put such a thing together. Our current lawmakers don't really qualify as intelligent or qualified in a lot of ways. But I digress.

1: Most reputable banks are offering either a complete mortgage deferral or are doing interest only payments on your loan. The only problem though with interest only is that if you have a fat loan that started not too long ago a huge part of your payment is the interest anyway so its not doing you much good.

2: My understanding is yes, the rent is still charged to the ledger and they are on the hook to pay it at some point. Its not rent forgiveness.

3: See #2. Since it owed, a tenant would be dumb to just defer for no reason if they can still pay it. They would just be piling up back rent.

4: Its supposed to , but each household is different.
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fightingfarmer09
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2:41p, 4/6/20
So with a mortgage they just add the payments to the end.

So if you don't have to pay you $1000/mo rent do you have a $1000/mo lien or charge put against you that you have to pay back?

Dumb idea, screws legitimate businesses that could make their own arrangements with customers/tenants.

Every renter with half a mind would claim deferment and hold out on the strong likelihood the Fed pass something forgiving it with taxpayer bailout.
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jd1990
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2:41p, 4/6/20
I've reached out to my mortgage banks and they will let me "defer" mortgage payments. I still have to pay just moved them back. I'm working with my renters and so far working out okay. But you are right bottom line is they can get rent free housing. Landlords will have to pay but can move payments back without impacts to credit or get hit with late charges.
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eric76
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In reply to Premium • 2:41p, 4/6/20
AG
Premium said:
So many questions about tenant / landlord arrangement:

1. Are mortgages postponed along with rent?
2. Do tenants have to pay the money, eventually?
3. If tenants are gainfully employed do they still get to skip payment?
4. I thought super-charged unemployment benefits and stimulus gave people money for rent?
Some people who are otherwise well meaning may, if they are unable to pay rent for a month or two, find it much easier to move and start from scratch elsewhere than to make up on the rent that they skipped.
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reed13
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In reply to JR Ewingford • 2:41p, 4/6/20
AG
Is it a federally-backed mortgage? If so, see above. There is relief for landlords in the CARES Act too.

If you are fortunate enough to be able to make your payments without a problem, then that's a blessing. If you are struggling, there is relief for federally-backed mortgages in the CARES Act and you should contact your lender.
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In reply to jd1990 • 2:43p, 4/6/20
AG
jd1990 said:
I've reached out to my mortgage banks and they will let me "defer" mortgage payments. I still have to pay just moved them back. I'm working with my renters and so far working out okay. But you are right bottom line is they can get rent free housing. Landlords will have to pay but can move payments back without impacts to credit or get hit with late charges.


So like owing the deferred payment later this year or in 29 years, at the end of your current loan?
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reed13
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In reply to Premium • 2:46p, 4/6/20
AG
Premium said:
jd1990 said:
I've reached out to my mortgage banks and they will let me "defer" mortgage payments. I still have to pay just moved them back. I'm working with my renters and so far working out okay. But you are right bottom line is they can get rent free housing. Landlords will have to pay but can move payments back without impacts to credit or get hit with late charges.


So like owing the deferred payment later this year or in 29 years, at the end of your current loan?
The guidance in the CARES Act wasn't very specific, but my guess is that it would not change the maturity date (although I could be wrong).
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JDCAG (NOT Colin)
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2:54p, 4/6/20
AG
The folks I've talked to that have asked their lenders about this were told they could push payments back 90 days, but at the end of that 90 day period, they had to get up to date...so if you skip 3 $1,000 month payments, then in 4 months you'll resume your payments at $1,000 + owe the $3,000 you deferred....

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McCoveysCove
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2:54p, 4/6/20
i think it would be pretty cold blooded to evict someone now who was having hard times. I would just defer the payments for 3 months and hope like crazty they can make payments then. Becayuse i have to make my payments
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OKG2000
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2:55p, 4/6/20
AG
Spoke with my lender about the deferment / forbearance - they are offering a 3 month option with a balloon payment at the end of the 3 months. They are however, reporting to credit agencies for the change in the terms, which negatively impacts credit score...obviously not as bad as missed payments, but still a cost.

Ive given one tenant an offer to defer payment in one case or take a ~10% reduction for the next 2 months. The other one hasnt paid yet or communicated back...

Anyone have different experiences? or suggestions?
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reed13
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In reply to OKG2000 • 3:02p, 4/6/20
AG
OKG2000 said:
Spoke with my lender about the deferment / forbearance - they are offering a 3 month option with a balloon payment at the end of the 3 months. They are however, reporting to credit agencies for the change in the terms, which negatively impacts credit score...obviously not as bad as missed payments, but still a cost.

Ive given one tenant an offer to defer payment in one case or take a ~10% reduction for the next 2 months. The other one hasnt paid yet or communicated back...

Anyone have different experiences? or suggestions?
My understanding was that even with the deferral option, lenders are required to report to credit agencies that the mortgage is "current," so it shouldn't affect your credit score; that's odd that your lender is doing it a bit differently (I think the lack of very clear CARES Act guidance has been difficult for some lenders to adjust to). Communicating and working with your tenants is probably the way to go: -be proactive, as it sounds like you are. Make sure to get any modifications and agreements on rent with your tenants in writing.
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DG-Ag
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In reply to OKG2000 • 3:04p, 4/6/20
AG
OKG2000 said:
Spoke with my lender about the deferment / forbearance - they are offering a 3 month option with a balloon payment at the end of the 3 months. They are however, reporting to credit agencies for the change in the terms, which negatively impacts credit score...obviously not as bad as missed payments, but still a cost.

Ive given one tenant an offer to defer payment in one case or take a ~10% reduction for the next 2 months. The other one hasnt paid yet or communicated back...

Anyone have different experiences? or suggestions?
My lender is offering 90-day forebearance. No late fees or credit reporting during that time period. I'm awaiting clarification as to what happens at end of the 90-day period - are the three skipped payments "added on at the end" or do I have to pay up the 3 missed payments. An email I received from them said this:

"Once the Forbearance period is over, you will be evaluated for any and all investor approved Loss Mitigation solutions including repayment plans and loan modification. Solutions for the missed payments are investor specific and continually changing in this volatile climate so we cannot give you specifics at this time."

I will update you guys when I get clarification.
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ABATTBQ11
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In reply to jd1990 • 3:20p, 4/6/20
AG
jd1990 said:
I've reached out to my mortgage banks and they will let me "defer" mortgage payments. I still have to pay just moved them back. I'm working with my renters and so far working out okay. But you are right bottom line is they can get rent free housing. Landlords will have to pay but can move payments back without impacts to credit or get hit with late charges.


It's not rent free. They still owe you the money. You just can't evict them. It's the same as a landlord moving back their payments.
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aggiebymarriage88
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In reply to DG-Ag • 4:02p, 4/6/20
Do you know which investor backs your loan?
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fig96
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In reply to fightingfarmer09 • 4:35p, 4/6/20
AG
fightingfarmer09 said:
Dumb idea, screws legitimate businesses that could make their own arrangements with customers/tenants.
If you're a smart legitimate business you've probably already been working on making arrangements with customers/tenants. This would seem to be targeted at people with landlords who aren't grasping the reality of the current situation.

But you'll always have people who try to take advantage (on both sides), just how people are unfortunately.
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DG-Ag
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In reply to aggiebymarriage88 • 11:02a, 4/7/20
AG
aggiebymarriage88 said:
Do you know which investor backs your loan?
Fannie Mae.

And this is what they told me when I asked about resuming payments at end of forbearance period:

"At the end of the Mortgage Forbearance period, all payments not made are required to be paid back. Below are three options borrowers have to pay back funds, and are subject to investor requirements and may differ from Investor to Investor:

  • Lump Sum Payment: The simplest option for borrowers is to make any deferred mortgage payments in one lump sum at the end of their forbearance. We understand this may be difficult if the borrower has experience loss of income or employment.
  • Repayment Plan: Some borrowers may qualify for a repayment plan, which allows borrowers to pay an extra amount each month until the amount owed for the forbearance is met.
  • Loan Modification: On a case-by-case basis, Colonial may allow a borrower to modify their loan, which will likely restructure the interest rate and term of the loan to make forbearance repayment possible."

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BMach
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In reply to OKG2000 • 11:29a, 4/7/20
AG
All but one of my tenants paid April. We offered to allow no late fees of paid by this Friday, which they agreed. I have heard of others setting up payment plans. Basically splitting April's and possibly May's rent over the remaining months rent. For example, if rent is $1200 a month and they have 12 months remaining on their lease, they will pay $1300 a month for the remaining 12 months.
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aggiebymarriage88
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In reply to DG-Ag • 10:36p, 4/7/20
Fannie Mae probably has the best suite of post forbearance options of any investor. What path you choose will depend entirely on where you're at in the next 3+ months but you should be able to find something that gets you back on track with minimal impact.
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