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

#361

Post by mullingitover » Thu, Jun 04, 2020, 1:15 AM UTC

ed25519FUUU wrote: post #14

mullingitover wrote: post #4

Earlier quoted context omitted.

Savings rates are through the roof right now, I would worry more about a deflation spiral.

You may be biased as a WFH/silicon valley type (continuing to produce income despite shelter at home). The median checking account balance was $3,400 in 2019, and that was before COVID19 struck. There's a lot of people who were already barely hanging on, and now covid and demonstrations have pulled the rug out from under them. We're only 2 months in. Things will get worse before they get better. 1. https://www.valuep…

I'm talking specifically about PSAVERT[1]. This is nothing to do with my personal experience or identity.

PSAVERT went from a very steady baseline in the ~6-7% range for the last five years to 33% in eight weeks between February and April.

[1] https://fred.stlouisfed.org/series/PSAVERT

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

#362

Post by stx » Thu, Jun 04, 2020, 1:16 AM UTC

jeffbee wrote: post #229

dv_dt wrote: post #59

Earlier quoted context omitted.

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.thea…

Corporate landlords are rational and reasonable negotiators who will readily respond to market signals. Small landlords are a crapshoot; you might get one who just prefers an empty unit over lower rents. You can easily see this from craigslist data right now. Large buildings are lowering rent faster than small buildings and single-family houses.

This is true. I have known people who were more happy to have a house empty for months on end waiting for a tenants at a higher price rather then taking a tenant now for a lower price (~$200 price difference). They made the decision emotionally based on, "my house is worth so much" instead of looking at what would be in their best interest. Also some of the higher paying tenants I have seen not take good care of property.

I just accepted a lower price with a tenant because it helps them and was way better then them leaving and trying to find a tenant now.

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

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Post by bbarn » Thu, Jun 04, 2020, 1:16 AM UTC

caseysoftware wrote: post #145

tinza123 wrote: post #62

As a passive real estate investor I'm seeing bidding on new sales has actually been more competitive than ever in my area (Atlanta GA). A lot of houses are selling above asking prices with 8-10 offers on the table. I am not sure if people genuinely think it is a good time to buy, or is it mostly FOMO.

I've been watching 20+ properties around Austin, some out of genuine interest, others for a baseline. Zero of them moved in March and April despite asking price coming down every couple weeks. Now in the last couple weeks, 8 of them have had offers. I can't tell if they just dropped back into a "reasonable" range or some segment of the market has turned but it's fascinating.

Home sales always peak when weather is nicer. As do leases for rentals. Leases that were ending a year from today are still ending, and some people are in a great place to buy a home, and inventory is incredibly low right now.

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

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Post by sokoloff » Thu, Jun 04, 2020, 1:17 AM UTC

uoaei wrote: post #341

virmundi wrote: post #262

Earlier quoted context omitted.

Depends on the insurer too. Riots might not be covered. Neither was pandemic. Sucks to be a small business right now. Anyone got first hand experience with SBA loans?

If riots aren't covered in cities and neighborhoods with historical precedent of civil unrest, I don't think that's anyone's fault but the policy provider's.

Why the provider and not the purchaser who chose that insurance? It’s spelled out in the contract what you’re buying (and paying for).

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

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Post by bbarn » Thu, Jun 04, 2020, 1:18 AM UTC

entangledqubit wrote: post #89

tinza123 wrote: post #62

As a passive real estate investor I'm seeing bidding on new sales has actually been more competitive than ever in my area (Atlanta GA). A lot of houses are selling above asking prices with 8-10 offers on the table. I am not sure if people genuinely think it is a good time to buy, or is it mostly FOMO.

How do things look without using the questionable guidance of "asking price"? "Asking price" (and the notion of above asking) often seems like real estate agent reality distortion to me. Mortgage rates are super low, so some may see this as getting an asset they can leverage in an improved environment later.

It's also very location specific. Some areas listing too high will hurt you in the long run, so sometimes people definitely do what you're saying - price it low to get lots of offers hoping to get a bidding war. Other areas are much less tolerant of games like that - it's quite regional.

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

#366

Post by bsanr2 » Thu, Jun 04, 2020, 1:19 AM UTC

dmarlow wrote: post #345

michaelmrose wrote: post #275

Earlier quoted context omitted.

Anyone who thinks anything comes easy because you're poor hasn't been poor except in the poor college student "working" their way through the college daddy is paying for type of poor. Your experience points to the human race sucking not poor people.

I don't disagree. I hope I didn't come across any other way.

You "It's not what you did, it's that you lied"ed a tenant who lied to avoid being kicked out, in order to justify kicking them out?

Yeah, it sounds like moralizing to avoid coming across as ignorant of class issues. However, ironically, it gives you away, because people who think that's excusable are generally ignorant of class issues.

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

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Post by [deleted] » Thu, Jun 04, 2020, 1:21 AM UTC

sfj wrote: post #310

inetknght wrote: post #234

Earlier quoted context omitted.

The largest insurance claim I've had was for a little over $5k for a vehicle repair after collision while avoiding a pedestrian in the street. I'm not sure if you think that's "large" but it was very painless to do IMO.

I wasn't able to collect on insurance for “damage not due to a collision” on my motorcycle when it blew over in strong wind, because the insurance agent said, “There was a collision. When your motorcycle fell over it collided with the ground.”

[deleted]

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

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Post by imposterr » Thu, Jun 04, 2020, 1:23 AM UTC

stx wrote: post #359

ianlevesque wrote: post #183

Earlier quoted context omitted.

These stories that come out of the woodwork every time tenants are mentioned are why I’ll never be a landlord.

I have one way worse. My Dad rented a couple houses for extra income when I was a kid. One tenant was evicted for reasons I cant remember. To get revenge they spread bird seed or grass seed all over the living room carpet and then turned the sink on and stopped the drain. When my dad came into the house later the seeds has sprouted and were growing out of the wet carpet.

That's actually really creative. Horrible, but creative nonetheless.

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

#369

Post by 01100011 » Thu, Jun 04, 2020, 1:24 AM 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…

Google 'white flight' for historical precedent. It remains to be seen if it will happen again, but it is certainly possible. I know I'm ready to leave the Bay Area for someplace boring.

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

#370

Post by ganoushoreilly » Thu, Jun 04, 2020, 1:26 AM UTC

alistairSH wrote: post #330

inetknght wrote: post #234

Earlier quoted context omitted.

The largest insurance claim I've had was for a little over $5k for a vehicle repair after collision while avoiding a pedestrian in the street. I'm not sure if you think that's "large" but it was very painless to do IMO.

Nope, not large. A friend had an Aston Martin that caught on fire. About a $120k car. It took months of investigations to close that claim. Insurance pointed finger at AM, AM wanted their own investigator, fire inspector involved, etc. And that’s not even large relative to a house or business.

I had a similar problem with an Audi except it was between the original person that hit me, the repair center thst did more damage and allowed the car to be flooded, and Audi. 9 months to sort out most of the car issues on a 95k car.