Federal Judge Overturns National Eviction Ban

Filed under: Market Comentary

A saw a headline on CNBC: Federal Judge Overturns National Eviction Ban. The article is quick to mention that it may not have the immediate effect of all landlords being able to evict people right away. But it certainly appears to be a step in the direction of loosening things up to help landlords.

What’s Happening in Our Industry?

Many of the topics I’ve talked about lately are based on the same scenario: the “heartless” topics of people who can’t afford to pay rent or buy a home because they are out of work.

The crazy thing: in an economy like we have, it’s worked for decades. When the Feds get involved and there are unnatural stimulus and supports coming through, then it throws everything out of whack. There is no question that there will be a longer-term impact because of what is going on. At some point, people are going to have to start paying their rent. I don’t know if that means that people will start consolidating households, but things will start changing

The more the Feds continue to tinker around, such as telling people they don’t have to pay their rent, it is just pushing the problem further down the road. And the problem gets bigger with time. Everyone will pay the piper at some point.

The Economy is Looking Good

I acknowledge that it’s a difficult situation. The economy is finally loosening up – by most metrics it’s actually looking great right now. There are tons of job openings. Yes, we still have to deal with the ongoing pandemic, but many people view it as good news that a vaccination is available to help us keep going.

Right now, I think the eviction ban is scheduled to lift at the end of next month anyway. But there are many assumptions that it will probably be extended again. There are lots of current lawsuits on this topic, so it will be interesting to see how it plays out. This topic will be one to watch; these poor landlords are getting hit hard because of the situation.

What are your thoughts on the topic? Share your comments – I’d love to hear from you!

Franklin Loan Center | NMLS 237653
Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act, 4131316
For questions or concerns please email info@franklinlc.com