Can single-family home landlords in Birmingham, AL, and the rest of the USA come out of the CARES act protections unscathed?

Health crises all over the USA are the net result of the pandemic. Alongside this, we’re facing a severe collapse in some real estate sectors nationwide once temporary protections come to an end. There’s a good chance that up to forty million people may face eviction in the next few months, fueling the homeless population – already growing at an unprecedented rate. The most reliable federal, state, and local data sources confirm these numbers. While a catastrophe like this looks terrible from the tenants’ viewpoint (and it is), the swamp is just as threatening for landlords executing the evictions. This article focuses on them.

How does an eviction moratorium work?

The CARES ACT focused its attention on helping millions of folk losing their jobs in an unemployment wave that hit us from March 2020. It aimed at protecting anyone who was paying rent in:

  • Federal housing programs
  • S. Department of Agriculture (USDA) rural housing programs.
  • Any residence owned by a landlord who, in turn, relied on financing from:
  • Fannie Mae, Freddie Mac mortgages
  • HUD and other federal verticals in the real estate funding arena.

The act wasn’t all for the tenants, of course. By banning eviction, the content writers understood that landlords were facing the prospect of no cash inflow while forced to keep tenants housed. So, it went further and stopped lenders from foreclosing on landlords, even though loan forbearance resulted in mounting debt.

What’s the reality on the ground during the eviction moratorium?

The next year appears to be bleak. Landlords earned their title by initially entering real estate markets that looked stable. It was a less risky way to bolster their income and sell eventually for a capital gain. That’s why leverage has worked so well for hundreds of years in property marketplaces worldwide. Buying a home to rent out was virtually a no-brainer over the long run.

Then out of the blue, the pandemic hit us between the eyes. Homes rented out to problematic tenants that one can’t evict poisons the water quickly.  When the protections disappear, as they soon will, the chickens will come home to roost.

Look forward to this:

  1. Landlords find themselves still on the hook for missed mortgage payments, and they have to negotiate their way out of the mire.
  2. Simultaneously, many tenants will resort to abandoning residences merely to avoid their missed rental obligations. It’s not a great prospect chasing down desperate people with no money to fill the backlog.
  3. Bet your bottom dollar that landlords will face the challenge of cleaning up wholesale clutter, minor and significant disrepair left behind by previous tenants. Things like water damage, mold, broken windows, and the like will emerge in a time when cash is short.
  4. Besides having to sue tenants for back-rent, landlords probably have unemployment issues somewhere in their own families. They also need to pay their property taxes, make sure the residence is insured, and get things ship-shape for any new tenant.
  5. The facts point to landlords in a cash crunch with a capital C. Indeed, many may wish that their house was gone, with a capital G. It’s a highly stressful experience watching one of your biggest assets slide into a liability.

When the evictions open up, and mortgage forbearance ends, the start of real estate markets trying to come back from the brink will begin. The situation indicates that landlords will need substantial help from professionals to turn on the cash spigots again, or at worst, stop the leaking.

Is a traditional realtor positioned to help landlords sell houses as a good option coming out of government protections?

As they apply to landlords, we have put a good case forward that real estate markets do not offer an environment of peace and relaxation in the medium term. There’s no doubt that the pandemic is still raging, and the road back to public health is on the horizon but slow and plodding. When single-family homes are threatened as go-to assets to derive a safe income, you must believe that the landlords’ plight, in general, is a severe one. There’s going to be a rush for the exits to unload troubled houses all over Alabama, and one of the stalwart resources are likely traditional realtors. How good a job do you think they’ll do? Here’s how I see it, particularly if you need to sell a house fast out of your portfolio:

  • Realtors want pristine houses with the interior and exterior looking great. They want to compete with all the other MLS listings. This generally means they’ll pressure you to declutter, repair, renovate, stage – whatever it takes to project amazingly well. Conversely, as-is houses with flood damage, fire damage, disrepair that shows on the walls, flooring, and fixtures are a realtor turnoff. Unless you want to sell at bumper discounts on fair value, you won’t get traditional support in your corner.
  • Realtors can only sell by moving traffic through your passages and rooms. It’s not an inviting prospect with social distancing top-of-mind with most families.
  • Have you looked at how long it takes to photograph everything, get it up on the MLS, advertise, and so on? Count on a six-week selling cycle, and that’s only if you’re the best-looking home on the market. Problem houses can take months – time you may not have as a luxury.
  • Another considerable obstacle appears when the realtor notes there are liens on the house and mortgage payments are in arrears. When they see that, they see their commissions (i.e., 6% in most cases in total) disappearing because closing a deal is less than a probability. Moreover, realtors don’t have the time or motivation to help with the process of creditor discussion.
  • Throw in bad tenants, and your realtor prospects will politely pass in accepting you as a client. Getting a rental property sold with tenancy issues coming out of the woodwork will frighten most agents on sight.

Can a home cash buyer like Home Buyers Birmingham do a better job for stressed-out landlords than traditional realtors?

Yes, they are ahead of their time and geared up perfectly to get you up and running. Their methods are entirely different but substantially effective.  Essentially, everything Home Buyers Birmingham can do post-pandemic fits into accelerating your release from real estate problems. You’ll see the light at the end of the tunnel, and this time it won’t be an oncoming train.

  1. Home Buyers Birmingham are real estate professionals, able to divorce themselves from the blemishes that emotionally deter buyers looking to make the house their new home. They look past shoddy curb appeal, old-fashioned decor, and mismatched paint colors. Minor disrepair won’t work in a disproportionate way against the offer value.
  2. Home Buyers Birmingham’s home inspections begin the process and reflect in the offer’s bottom line, which cannot change for any reason. Also, there’s no lender involved along with their appraisers to say the price is too high.
  3. The price you see is the cash you get, and you can close the deal within a week after contacting Home Buyers Birmingham. It saves you paying traditional realtors a significant cut of money received and erases weeks of aggravation from the process.
  4. When dealing with experts like Home Buyers Birmingham, don’t hold back on telling them about troublesome tenants, liens against the title, and mortgage installments still owing. They have the skills to smooth the way to a mutually acceptable closing and often get the liens whittled down to cents in the dollar. If tenants are involved in the home with or without a lease, lay everything out and watch it get resolved.
  5. When you sign off with Home Buyers Birmingham, there are no commissions, fees, or extra charges. Even the most problematic home rental situations come out smelling like roses, often with some free cash in your pocket retrieved from what sometimes looks like a tangled mess. It’s not unheard of for Home Buyers Birmingham to rearrange leases with tenants to right the ship and get unpaid rentals for you at the same time.

Conclusion

Landlords of single-family houses like Home Buyers Birmingham have no complications and lengthy convoluted processes to think about. Working with them as you leave the pandemic protections will get you:

  • An agile, fast-deciding team that buys homes for cash, delivering a fair offer even when there are stressful tenant issues.
  • No holdup fixing the house to show because aesthetics aren’t that crucial to home cash buyers.
  • Constructive and methodical help removing irksome creditors.
  • Savings on commissions and fees.
  • A buyer’s offer inside twenty-four hours, and cash in the bank inside a week.
  • Release from creditor and tenant issues forever.
  • Getting a bottom-line picture upfront. It plays into receiving an offer not held up by home inspections after the event.

So if you are a small-scale landlord in Birmingham, AL, in the middle of the pandemic, pondering distasteful options, get in touch with Home Buyers Birmingham. Buying a house for cash fast and seamlessly fits their style perfectly.

Home Buyers Birmingham
1821 11th Avenue South Suite #55331
Birmingham, Alabama 35205

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Can single-family home landlords in Birmingham, AL, and the rest of the USA come out of the CARES act protections unscathed?
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