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Corona spread prevention limit?

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On 4/4/2020 at 12:28 PM, FondrenRoad said:

The moratoriums are just talk too. Rent was due on April 1.  So far, it will also be due on May 1 too.  I think early May is about as long as people will be able to do this.  Both spring fever and the need to make money will be overwhelming. 

We need to establish and implement a plan to pick up where we left off when this is over. No rent owed, no mortgage owed, no property tax owed, and no utilities owed for the duration of this. Mortgages can instead be extended 2 months.  Utilities and state/local tax revenues can take it on the chin. But it will allow small businesses to reopen without being overburdened with back rent which will allow their now laid off employees to get back to work when this is over. 

Assuming those small businesses aren't landlords of apartment complexes or homes who depend on that rent for their own income to use to pay their bills.  There is a whole domino effect of this that starts with tenants not being able to pay rent and ends with banks taking it in the nuts because the realtors they have lent money to can't make payments on those loans.  Don't get me wrong, I'm not arguing for making people pay rent during this.  I'm pointing out that even what seems like a reasonable and decent idea during this can have bad side effects.  Also local and state governments are not the federal government.  They can't run a budget deficit into the billions and trillions like Washington does.  How are state and local governments going to give financial assistance to anyone if they can't collect property taxes?  Again, reasonable and decent idea on the surface but bad side effects lurking underneath the surface.

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34 minutes ago, EMAWesome said:

Assuming those small businesses aren't landlords of apartment complexes or homes who depend on that rent for their own income to use to pay their bills.  There is a whole domino effect of this that starts with tenants not being able to pay rent and ends with banks taking it in the nuts because the realtors they have lent money to can't make payments on those loans.  Don't get me wrong, I'm not arguing for making people pay rent during this.  I'm pointing out that even what seems like a reasonable and decent idea during this can have bad side effects.  Also local and state governments are not the federal government.  They can't run a budget deficit into the billions and trillions like Washington does.  How are state and local governments going to give financial assistance to anyone if they can't collect property taxes?  Again, reasonable and decent idea on the surface but bad side effects lurking underneath the surface.

True, Washington is going to have to bail out state and local gov't's.  Nothing is going to be perfect.  The alternative is simply much worse.  If tenants take all the heat, that shit will roll uphill faster than any other possible workaround.  If a landlords are evicting tenants, there will be exactly 0 tenants ready to move in.  The landlord will default on his mortgage, the bank will eat the loss, and the bank, landlord, and tenant will all declare bankruptcy.  Maximum losses for everyone.

My suggestion should be more palatable for everyone.  The mortgage agreement can be adjusted.  Let's say this is a 2 month shutdown.  If your final mortgage payment was due on June 1, 2030.  The bank waives your 2 payments as well as interest accrued during the shutdown, and in return you agree to extend your mortgage until August 1, 2030.  The same can be done for any installment loan.  The state agrees to waive property tax during the two month shutdown to any landlord that waives rent for its tenants.  Utilities will also need to waive bills.  Yes, everyone loses income, but not catastrophically so. 

If everyone tries to eke out that last bit of greed, then everyone loses.  There are absolutely going to be losses, but they only need be catastrophic if we let them.  The landlord needs to understand he has a good tenant already.  The bank needs to understand it has a good mortgage customer.  They need to work together to minimize their losses.  If everyone acts based only on individual self interest, there will be no other tenants waiting in the wings. There will be no other mortgage customers.

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