Millions of Americans skipping payments as wave of defaults and evictions looms • Hacker News Board

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#51

Post by lacker » Wed, Jun 03, 2020, 10:35 PM UTC

bshipp wrote: post #17

This is just the start. Landlords would be smart to work with tenants to share some of the loss and renegotiate temporary adjustments to keep at least some revenue coming in because the heady days of high demand for rental units is likely behind us for a while. It'll be worse in downtown areas. I've heard from multiple firms that are looking at downsizing their expensive office space and continuing to allow employees…

In some places, like Oakland and Tahoe, rent seems to be going up. But in San Francisco it is going down. Probably all as a result of people fleeing San Francisco to nearby places with a cheaper rent per square foot.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#52

Post by bagacrap » Wed, Jun 03, 2020, 10:35 PM UTC

cycrutchfield wrote: post #19

avancemos wrote: post #13

Lockdowns are effective as tourniquets, but indefinite or long term use was never logical. There should have been more forward-thinking and pragmatic options pushed earlier. We will now see the natural repercussions of lockdown-centered policies.

Nobody was ever advocating for indefinite or long-term lockdown policies. That's a strawman.

I guess it depends on how you define long term. I do have friends who think the lockdown should last in its current form (ie extended holiday with extra $600/week for the unemployed) until there's a vaccine.

Flattening the curve was the refrain but we seem to have forgotten that.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#53

Post by atemerev » Wed, Jun 03, 2020, 10:35 PM UTC

walterbell wrote: post #7

If there is no spike in infections within two weeks, from areas which had large public protests in the past week, can millions of Americans be helped by restarting the economy?

The delay in observable cases is about 4-6 weeks, due to a number of cumulative effects.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#54

Post by viklove » Wed, Jun 03, 2020, 10:35 PM UTC

MattGaiser wrote: post #37

cft wrote: post #11

Earlier quoted context omitted.

I wonder who downvotes this and why.

QE has been going on for years since 2008. Still waiting on that inflation. https://www.usinflationcalculator.com/inflation/historical-i... QE contains an easy break on inflation. If it starts surging, the market can just have the assets the fed holds added back to it.

You're looking in the wrong place. QE doesn't go to families, so it doesn't increase the cost of milk, apples, or eggs. It went to the wealthiest banks and corporations, and wouldya look at that -- asset prices are inflated, "startups" have absurd valuations, and the wealth gap is larger than ever before.

The inflation is there, clear as day. You're just not looking in the right place and you think you're so smart because of it.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#55

Post by wtvanhest » Wed, Jun 03, 2020, 10:36 PM UTC

leereeves wrote: post #38

cft wrote: post #26

Earlier quoted context omitted.

In California for example, due to state-wide rent control, it's very dangerous for a landlord to lower rents. I would rather offer 6 months free rent than lock into permanent nonadjustable lower rent situation.

If a lot of landlords start exploiting that loophole, I wouldn't be surprised if the law were revised to be based on the average rent over a year, or something similar.

That really would be the best legislation. A simple calc of the rent of the first 12 months of the lease becomes the base rent.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#56

Post by beervirus » Wed, Jun 03, 2020, 10:36 PM UTC

I have a commercial tenant who was forced to shut down their business during the lockdown. I just waived rent until they were allowed to reopen. You can't get blood from a turnip, and I really don't want to force them into default and try to find another tenant in this environment anyway.

Almost everybody is taking a haircut this year.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#57

Post by GhostVII » Wed, Jun 03, 2020, 10:36 PM UTC

leereeves wrote: post #38

cft wrote: post #26

Earlier quoted context omitted.

In California for example, due to state-wide rent control, it's very dangerous for a landlord to lower rents. I would rather offer 6 months free rent than lock into permanent nonadjustable lower rent situation.

If a lot of landlords start exploiting that loophole, I wouldn't be surprised if the law were revised to be based on the average rent over a year, or something similar.

I think the only effect of that would be to prevent landlords from giving free months of rent - better to lose a tenant than permanently have lower rents which may not be sustainable.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#58

Post by rhexs » Wed, Jun 03, 2020, 10:36 PM UTC

Guest42 wrote: post #12

rhexs wrote: post #8

Guy has what looks like a luxury truck and is apparently having trouble deciding between food and his car payment. Sell the car, get a cheap used beater, reduce expenses, keep looking for a job. Not sure what NPR wants me to take from this example.

Hiring is very slow at the moment and the beater would likely require a lot of maintenance and have a high price tag although I agree that it’s smart to drive cars that are more economical.

Sure, it’s a rough situation. He lived beyond his means and sank due to the black swan. Now, if the story was about repossessing the truck he needed to drive to a food pantry, I’d have a bit more sympathy.

The loan company should be barred from repossessing for generating subprime auto loans or whatever these are called, but this was still directly caused by lack of financial awareness.

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#59

Post by dv_dt » Wed, Jun 03, 2020, 10:36 PM UTC

bshipp wrote: post #17

This is just the start. Landlords would be smart to work with tenants to share some of the loss and renegotiate temporary adjustments to keep at least some revenue coming in because the heady days of high demand for rental units is likely behind us for a while. It'll be worse in downtown areas. I've heard from multiple firms that are looking at downsizing their expensive office space and continuing to allow employees…

Unfortunately, as part of the unfolding of the post 2008 recession, a lot of rentals shifted from individual or smaller landlords to larger corporate landlords whom take a much more impersonal approach to making it through the depression. To some degree, to the extent they can take out holdover loans and let rentals sit empty, they will do just that - irregardless of the social utility of compromise.

https://www.theatlantic.com/technology/archive/2019/02/singl...

Re: Millions of Americans skipping payments as wave of defaults and evictions looms

#60

Post by pengaru » Wed, Jun 03, 2020, 10:36 PM UTC

api wrote: post #23

I know people who are skipping payments just to be in solidarity with people who can't pay. They see it as an act of protest not only of inequality generally but of the fact that no matter what happens the financial industry will get a limitless bailout at the expense of everything else. Not paying is a way of getting a piece of that bailout. I agree with the latter point. We've seen in the past 10 years or so that t…

> I know people who are skipping payments just to be in solidarity with people who can't pay.

So they're donating what would have been spent on rent to an appropriate cause? Surely they're not keeping the money if it's just that. /s