What happens if you can’t pay rent due to pandemic

Jobless claims surge to 3.3M as coronavirus spreads


For millions of tenants who have lost their jobs because of the coronavirus pandemic, Wednesday, April 1, is D-Day: The monthly rent check is due.

That could pose a nationwide dilemma because 3.3 million Americans filed initial claims for unemployment insurance the week ending March 21 and a similar number may have sought benefits last week. That means virus-related layoffs or reduced hours may have topped 6 million just in the past two weeks.  

Fortunately, the vast majority of tenants – who make up about 36% of all households — will be getting a reprieve through federal, state or local moratoriums on evictions. Many landlords will similarly get a break on mortgage payments, though others could still be on the hook even if their tenants are delinquent.

Here’s a rundown:

Will I be evicted if I don’t pay rent?

Probably not. The $2.2 trillion stimulus includes a moratorium on all evictions from buildings financed with a federally-backed mortgage, such as those funded by Fannie Mae, Freddie Mac and the Department of Housing and Urban Development. After excluding private mortgages and buildings whose mortgages are paid off, the moratorium covers about 40% of all single-family homes and half of multifamily buildings, says Shamus Roller, executive director of the National Housing Law Project.


Source link

By Javier Manning

Javier has been in the field of content writing for almost 8 Years as he hails from the Biotechnology background. The edifying articles portray her craving towards language. His keen hobby of reading technological innovations related books or articles has sown the seed of being a well-versed editor with the current scenario of numerous industry verticals. He is one of the valuable assets to this publication. The Industry News Press has awarded him with a senior editors post based on his skillful performance to date.