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Boy oh boy do I have news for YOU!
This week the CDC (Center for Disease Control) issued a nationwide ban on evictions that is estimated to last until December 31st, 2020. When I first heard about this I thought it was some sort of hoax because last time I checked, housing was not part of CDC’s focus.
To go directly to the order to read it yourself go to: http://cashflowguys.com/cdc
The CDC Eviction Ban order applies to ALL Landlords, regardless of what mortgages they have in place (previous orders applied to FHA Loans only). The only exceptions available apply to hotels, motels and short term vacation rentals.
You should know that in order for the ban to apply to your tenant, the new order requires that tenants supply a specific written declaration to the landlord for the new policy to apply. Look at Attachment A on the CDC website link for details on that.
According to the CDC, the intent of this new order is to help stop the spread of Covid-19 by discouraging people from moving during these times and to lower the likelihood of homelessness which they feel will increase the spread of the virus.
What’s interesting about their reasoning is that many prisons decided to release prisoners into the streets for the same reason (to reduce the spread).
If you use the link above it will provide direct access to the order which you can (and should) read. The information in this order is important to know even if you don’t own rental property.
As a future buyer, you can rest assured that this order will result in many landlords throwing in the towel on landlording and therefore want to sell their property. I would imagine that most landlords can’t survive 6 months with no rent payments.
When new regulations impact owners of property, investor buyers can often put together great deals as sellers look to flee the market.
A savvy real estate investors pays attention to the shifting market conditions and new regulations that would provide a negative impact on investment properties. Situations such as these create motivated sellers, which means great odds in acquiring properties with attractive purchase terms.
The upcoming housing market and economic crashes will provide never seen before opportunities to buyers who are ready to buy and are willing to solve problems for anxious sellers.