Corona Foreclosure, Eviction, Repossession

This blog is addressed to those of you with wealth and property (lenders). The action described will protect your assets and future income stream, while treating your debtors well. Corona foreclosure, eviction and repossession are suicidal acts for mortgage holders, landlords and lenders. Like suicide, they are not a good solution to the problem. The best description of a suicide is that “it is a permanent solution to a temporary problem.” By taking any one of these actions the lender is risking getting rid of a good paying debtor, experiencing vacancy, the lowering of property value and property damage. Is there a less painful solution to the property owner, during this pandemic? Hell yes. Read on.

At this point in time there are 25-30 million wage earners on unemployment due to Covid19. These are a large chunk of the folks that you receive rent or mortgage payments from and soon they will be unable to make those payments. Automobile loans fit into the same scenario. This is through no fault of the borrower. If you take any of the above actions you will start a down spiral in the economy and make that number of families homeless and without transportation. There is a better way for you and for the temporarily unemployed to solve this problem.

The answer is an intelligently administered freeze of payments. No back payments due. No late fees. No accumulation of interest. This would be for the period of unemployment caused by the virus. If you are looking at a 30 year mortgage and the period of unemployment is one year, the loan would be paid off in 31 years. No ruining of credit. No homeless population increase. The lender (you) would need to have their mortgage payments paused as well.

The retired population, living on government income or a private retirement plan, or those not retired, but with a large investment income should not be involved in this plan, as at this point in time their income has not been effected. No one who cannot justify a need for this plan should benefit from it.

In 2008 the economy crashed due to unwise action by the banks and investment companies. The public bailed them out. It is time for you one per-centers to return the favor. Our government can not long afford to make mortgage, rent payments or car payments for the population. In good times government operates at a deficit. So where do the billions required come from? We borrow or print money. Neither will work well in this covid19 crisis. Borrowing with a crippled economy will be at a high interest rate. Printing money without production backing will result in mega-inflation. The answer is in a well executed, temporary pause of payments to property. The program must be executed by the Federal Government. Get your lobbyists working on it. Save your property values.

Cheers, Old Buz

8/5/2020