4 ms·

Ignoring whether or not he will, what might be the mechanics of something like this? Is there any precedent of this in history? What’s a good way in which this

by pen2l 7y ago

Ignoring whether or not he will, what might be the mechanics of something like this? Is there any precedent of this in history? What’s a good way in which this might take place?

_delirium 7y ago
A lot of states have de-facto made it optional to pay your rent (and in some cases mortgages), by banning evictions, banning foreclosures, etc. Mine has also banned any late fees during the state of emergency, so there is really no penalty to just not paying the rent. You still accumulate it of course, and at some point after the emergency ends, everyone is supposed to pay up the back months of rents and mortgages they owe, or face reopened eviction/foreclosure processes. That's where it gets dicey, to see who is left holding which bags. Non-zero chance of at least some cascade: if a bunch of your tenants never pay 3 months of back rent (b/c they have no jobs), and you were already a very leveraged landlord without much of a cash cushion, you're not going to be making your 3 months of back mortgage payments either, etc. Less leveraged landlords will just eat some losses. If the economy recovers quickly, maybe some of this will be papered over by repayment plans (you can pay your 3 months of back rent/mortgage over the next 12 months or something, and nobody has to admit any official losses). How big all of these categories are will make a pretty big difference to whether it cascades into foreclosure waves, banks with junk loan problems, etc.
hunter2_ 7y ago
Roll the clock back a year. This May's rent is due 01May2020, but not the first 01May2020, the second one. I jest, but the logic is based entirely off the way we do daylight savings time: change the clock. In the fall, a TV program might start at the first 1am or the second 1am on the day DST ends. Same exact thing. Pacific Standard Time, Pacific Daylight Time, Pacific CoVID Time. @todo Figure out how to switch back.

by pen2l 7y ago

Ignoring whether or not he will, what might be the mechanics of something like this? Is there any precedent of this in history? What’s a good way in which this might take place?

_delirium 7y ago

A lot of states have de-facto made it optional to pay your rent (and in some cases mortgages), by banning evictions, banning foreclosures, etc. Mine has also banned any late fees during the state of emergency, so there is really no penalty to just not paying the rent. You still accumulate it of course, and at some point after the emergency ends, everyone is supposed to pay up the back months of rents and mortgages they owe, or face reopened eviction/foreclosure processes. That's where it gets dicey, to see who is left holding which bags. Non-zero chance of at least some cascade: if a bunch of your tenants never pay 3 months of back rent (b/c they have no jobs), and you were already a very leveraged landlord without much of a cash cushion, you're not going to be making your 3 months of back mortgage payments either, etc. Less leveraged landlords will just eat some losses. If the economy recovers quickly, maybe some of this will be papered over by repayment plans (you can pay your 3 months of back rent/mortgage over the next 12 months or something, and nobody has to admit any official losses). How big all of these categories are will make a pretty big difference to whether it cascades into foreclosure waves, banks with junk loan problems, etc.

hunter2_ 7y ago

Roll the clock back a year. This May's rent is due 01May2020, but not the first 01May2020, the second one. I jest, but the logic is based entirely off the way we do daylight savings time: change the clock. In the fall, a TV program might start at the first 1am or the second 1am on the day DST ends. Same exact thing. Pacific Standard Time, Pacific Daylight Time, Pacific CoVID Time. @todo Figure out how to switch back.