CRISIS Eviction Moratorium Ruled Unconstitutional

[Doomer Doug]

Oh, boy this is going to take the entire system down and dump multiple millions onto the streets. It won't happen immediately, but the gears are finally in motion for mass evictions to happen nationwide. The judge ruled states could ban evictions, but not the federales, nationwide. Trump appointed him also which means a lot of obamabot judges are likely to reverse him as it heads up the food chain.
The link is here

Eviction Moratorium Ruled Unconstitutional, Largest Tsunami Of Evictions In U.S. History Incoming…

Ever since last summer, a federal moratorium on evictions has prevented landlords from evicting millions of tenants that are behind on their rent payments. This moratorium has caused extreme financial distress for many landlords, but

theeconomiccollapseblog.com

Eviction Moratorium Ruled Unconstitutional, Largest Tsunami Of Evictions In U.S. History Incoming…
February 26, 2021 by Michael Snyder

Ever since last summer, a federal moratorium on evictions has prevented landlords from evicting millions of tenants that are behind on their rent payments. This moratorium has caused extreme financial distress for many landlords, but it has also kept us from witnessing millions upon millions of Americans being thrown out into the cold streets. Of course this moratorium on evictions was never actually legal, and it was just a matter of time before it was challenged in front of a federal judge that still had respect for the U.S. Constitution. On Thursday, a federal judge in the Eastern District of Texas named John Campbell Barker ruled that the federal moratorium is completely unconstitutional…

J. Campbell Barker, a Trump-nominated judge in the Eastern District of Texas, issued the 21-page ruling Thursday in response to a lawsuit from a group of landlords and property managers.
“The federal government cannot say that it has ever before invoked its power over interstate commerce to impose a residential eviction moratorium,” Barker wrote, noting that it did not do so during the Spanish Flu pandemic or during the Great Depression. “The federal government has not claimed such a power at any point during our nation’s history until last year.”

But Barker did not issue any sort of an injunction, and so the moratorium is still in effect for the moment. In his ruling, Barker expressed his belief that the defendants will “respect the declaratory judgment” and will willingly withdraw the moratorium on their own…

The scope of the order is unclear. Barker wrote that given “defendants’ representations to the court, it is ‘anticipated that [defendants] would respect the declaratory judgment.’”

Federal officials could attempt to drag their feet, but the current moratorium is set to expire on March 31st anyway.
So whether it happens immediately or in a few weeks, the federal moratorium on evictions is ending.
Of course some states have their own moratoriums in place, and Barker noted that those are constitutional. So renters in those states will still have at least some protection moving forward.
But for most of the country, things are about to change in a major way.
According to one recent study, a whopping 10 million U.S. households are currently behind on their rent payments…

An analysis released last month by Moody’s Analytics and the Urban Institute said that some 10 million renters are behind on paying rent and risk being evicted. Moreover, the typical delinquent renter is almost four months and $5,600 behind on monthly rent and utility payments as of January, according to the analysis.
“To put that into some perspective, approximately seven million households lost their homes in foreclosure during the five darkest years of the global financial crisis,” the researchers wrote. “Here we have 10 million families facing a similar fate over a matter of months.”

Even if rent moratoriums remain in place in some states for the foreseeable future, we are still going to see millions upon millions of households evicted here in 2021.

It will be the largest tsunami of evictions in U.S. history, and homelessness is going to rise dramatically.

Needless to say, it isn’t going to be a happy time.
Meanwhile, we have already been witnessing a tsunami of bankruptcies.
In fact, the number of Chapter 11 bankruptcy filings in 2020 was “at least 30 percent higher than any of the previous four years”…

Bankruptcies filed by entertainment companies in 2020 nearly quadrupled, and filings nearly tripled for oil and gas companies, doubled for computer and software companies and were up 50 percent or more for restaurant owners, real estate companies and retailers, compared with 2019, data from the research firm show. There were 5,236 Chapter 11 filings in 2019, but 6,917 last year, a tally at least 30 percent higher than any of the previous four years.

This isn’t what an “economic recovery” looks like.
Sadly, the truth of the matter is that the U.S. economy is in the process of melting down all around us, and a whole lot more pain is ahead.

Up until just recently, the stock market had been one of the very few bright spots, but now chaos has returned to Wall Street.
On Friday, the Dow was down another 469 points…

The Dow Jones Industrial Average swung wildly Friday to close near its session low as Wall Street struggled to shake off fears of rapidly rising rates.
The blue-chip benchmark ended the volatile session 469.64 points, or 1.5%, to 30,932.37 after trading in the green earlier. The S&P 500 fell 0.5% to 3,811.15 as energy and financial stocks pulled back. The Nasdaq Composite ended the day 0.6% higher at 13,192.34 as Big Tech names rebounded after a large sell-off in the previous session amid surging bond yields. Facebook, Microsoft and Amazon each rose more than 1%. The tech-heavy benchmark gyrated in Friday’s session where it jumped 1.9% at its high and fell as much as 0.7%.

As I discussed yesterday, I do not believe that a massive stock market crash is imminent. But the early warning signs that we are witnessing now should definitely not be ignored.
Many are expecting economic conditions in the U.S. to improve as the COVID pandemic fades, but it is inevitable that many more “trigger events” will hit us in 2021 and beyond.

Considering how vulnerable we are right now, it certainly isn’t going to take much to send us into a death spiral from which we will never recover.
Unfortunately, it is always those at the very bottom of the economic food chain that get hit the hardest when challenging times arrive.

I feel very badly for the landlords that haven’t been able to collect rent for months and months, but I also feel very badly for the millions of Americans that will soon be thrown out into the streets.

The economic pain and suffering that we will soon see will be off the charts, and those that are expecting Joe Biden and his minions to save them will be bitterly, bitterly disappointed.

 

[Kathy in FL]

This has already been mentioned but to be honest a lot of evictions have been ongoing. The CDC rule only covered government backed mortgages. Check out any local courthouse and you'll find that foreclosures have been ongoing. I know personally of three evictions that have occurred and one that was just started yesterday. All of the cases are against people that I know for a fact had private hard money lenders because no bank would be stupid enough to lend to them. All of them had interest rates over 10%. And all of them this is the 2nd or 3rd time they've gotten the house out of hock. AND all of them have tax leins on the property or owe at least some property taxes on the property. The one that was filed on yesterday had just gotten the mortgage in November 2020 and they've already missed 1 payment and were late on 2. We know them personally and I know for a fact what they make every month (they've done work for us in our business). No way in heck would I loan them money. That house has been in foreclosure twice already with them.

Unless I heard each story for merit, no way will I extend any kind of broad brush of pity. If I know four and all four of them received consequences due to their personal choices there are a ton more out there like that. And by the way ... none of them used the stimulus money to pay their bills with.

 

[Dux]

Landlords don't want to evict. Unless the tenants are deadbeat scumbags. This Texas ruling is hopeful news.

 

[DryCreek]

This makes me feelz sadly.

I need to consult my crystals and stuff.

Do I win a "new age" award of some kind?

 

[Kathy in FL]

Landlords don't want to evict. Unless the tenants are deadbeat scumbags. This Texas ruling is hopeful news.

Yeah, it costs about $400 for he eviction alone in Florida, that doesn't include any legal fees.

 

[raven]

I bet the House passes a law to make it "constitutional"

and the Supremes will rule likewise

 

[ShadowMan]

So stupid question time.

So what happens when the landlords can't pay their mortgages because their tenants aren't paying their rent and the banks FORECLOSE on the landlords? Who is getting evicted? Landlord? Tenants? Landlord and Tenants? Everybody? Nobody? Somebody?

Do the landlords get a break from the government? Eviction is one thing and foreclosure is another. How will that work?

 

[Doomer Doug]

We are having a Marxist tyranny imposed on us. They will eventualy shoot the landlords, seize all private housing, or run it like section 8 with government managers.
Nationalizing all housing stock is also on the table, or just letting the banks foreclose and then have the federal reserve buy it all up.
Ain't Marxism grand, Shadowman?

 

[Dobbin]

Balancing the right of landlords to a profit or legal control of their property against the right of tenants to "secure lodging."

The Covid economic hit was not caused by landlords - why hold them responsible?

The economic hit WAS primarily felt by tenants unable to keep a job and unable to pay the rent.

If a remedy is sought - then perhaps remedy those most hit? There are more tenants than landlords on the voter roles so I might expect this option to be the most expedient for um "politicians."

Tenant situations change all the time. Tenants lose their jobs, they are evicted, they get new jobs, they get new lodging. THAT is the system as it has been applied. Landlords count on that system otherwise their investment money goes elsewhere.

And - you don't want that as it increases investment uncertainty and prolongs economic malaise.

Time (moratorium), assistance in finding jobs, lodging, or MONEY will address the issue among those who feel it most acutely. Choose which you think most effective short term, medium term, long term.

OR - Perhaps the best solution is part solutions for all four?

I think we're mostly seeing exactly that.

Dobbin

 

[Dozdoats]

It will definitely not be boring at any rate.

"You will own nothing, and you WILL be happy." I hope that comes with some of the really good drugs ....

 

[raven]

Balancing the right of landlords to a profit or legal control of their property against the right of tenants to "secure lodging."

The Covid economic hit was not caused by landlords - why hold them responsible?

The economic hit WAS primarily felt by tenants unable to keep a job and unable to pay the rent.

If a remedy is sought - then perhaps remedy those most hit? There are more tenants than landlords on the voter roles so I might expect this option to be the most expedient for um "politicians."

Tenant situations change all the time. Tenants lose their jobs, they are evicted, they get new jobs, they get new lodging. THAT is the system as it has been applied. Landlords count on that system otherwise their investment money goes elsewhere.

And - you don't want that as it increases investment uncertainty and prolongs economic malaise.

Time (moratorium), assistance in finding jobs, lodging, or MONEY will address the issue among those who feel it most acutely. Choose which you think most effective short term, medium term, long term.

OR - Perhaps the best solution is part solutions for all four?

I think we're mostly seeing exactly that.

Dobbin

tenants do not have a right to secure lodging

 

[Practical]

It's a service. You want to live here, I need $$$ for the lodging, that is it. What they are doing now is akin to telling a hotel they cannot kick out a person for not paying the nightly fee.

 

[Dobbin]

tenants do not have a right to secure lodging

This true in reality - but that is not the political perception. Or popular perception (one in the same mostly.)

AND - impose a political solution or the populace will impose their own solution.

Remember those guns? They defend "perceived rights." Not necessarily Maker given rights although that was the founder's intent.

Pols will be compelled by popular perception. Call it "for the children" if you will.

Government can be - is actually - an insurance policy against adversity. That IS a proper role of government. You bind together in common interest and protection.

It would be for the adversity of war. CCP virus is just another war - in effect certainly - but possibly in reality.

The problem with paying for the insurance is the Pols don't necessarily acknowledge the bill, but the bill ultimately gets paid - one way or another...

Dobbin

 

[ainitfunny]

What do you want to bet that we will see ILLEGAL ALIEN FAMILIES “provided free or substantially discounted government funded housing“( likely even some of the very homes citizens are losing ) whiie American citizens’ families, forbidden to work by their own government, get tossed into to the street with the other homeless.

 

[Dux]

So stupid question time.

So what happens when the landlords can't pay their mortgages because their tenants aren't paying their rent and the banks FORECLOSE on the landlords? Who is getting evicted? Landlord? Tenants? Landlord and Tenants? Everybody? Nobody? Somebody?

Do the landlords get a break from the government? Eviction is one thing and foreclosure is another. How will that work?

Bank owned property. They'll evict, clean it up and auction it off. There are some special laws that make it slower for tenants due to the 2008 meltdown. Landlords get a break? That funny. They'll be billed by the banks for any shortage. Then they can go BK, at least for now.

 

[Intestinal Fortitude]

So stupid question time.

So what happens when the landlords can't pay their mortgages because their tenants aren't paying their rent and the banks FORECLOSE on the landlords? Who is getting evicted? Landlord? Tenants? Landlord and Tenants? Everybody? Nobody? Somebody?

Do the landlords get a break from the government? Eviction is one thing and foreclosure is another. How will that work?

They will go to foreclosure auction where there are groups/corporationsentities waiting like sharks for this to occur.

 

[20Gauge]

This has already been mentioned but to be honest a lot of evictions have been ongoing. The CDC rule only covered government backed mortgages. Check out any local courthouse and you'll find that foreclosures have been ongoing. I know personally of three evictions that have occurred and one that was just started yesterday. All of the cases are against people that I know for a fact had private hard money lenders because no bank would be stupid enough to lend to them. All of them had interest rates over 10%. And all of them this is the 2nd or 3rd time they've gotten the house out of hock. AND all of them have tax leins on the property or owe at least some property taxes on the property. The one that was filed on yesterday had just gotten the mortgage in November 2020 and they've already missed 1 payment and were late on 2. We know them personally and I know for a fact what they make every month (they've done work for us in our business). No way in heck would I loan them money. That house has been in foreclosure twice already with them.

Unless I heard each story for merit, no way will I extend any kind of broad brush of pity. If I know four and all four of them received consequences due to their personal choices there are a ton more out there like that. And by the way ... none of them used the stimulus money to pay their bills with.

In all the years we have done rentals, we have only seen one that had merit.

It was a 90 year old lady who had her money stolen from her by a grandkid and some idiot reported her dead so they cut off her Social Security.

The rental agent was really uncomfortable with the eviction but as he explained to the judge, the owners were forcing the issue.

The judge to whom I give a lot of credit, simply told the rental agent, that "HE WOULD FIND A SOLUTION TO THIS PROBLEM! As the judge was not going to evict a 90 year old woman who got robbed by her own family.

A solution was found very quickly....

 

[Kathy in FL]

In all the years we have done rentals, we have only seen one that had merit.

It was a 90 year old lady who had her money stolen from her by a grandkid and some idiot reported her dead so they cut off her Social Security.

The rental agent was really uncomfortable with the eviction but as he explained to the judge, the owners were forcing the issue.

The judge to whom I give a lot of credit, simply told the rental agent, that "HE WOULD FIND A SOLUTION TO THIS PROBLEM! As the judge was not going to evict a 90 year old woman who got robbed by her own family.

A solution was found very quickly....

I'm going to assume ... and if I'm wrong just correct me ... you meant that you've only seen one case that merited the judge stepping in to stop it.

A lot of people don't realize how difficult it is to actually foreclose on someone and how expensive it is, plus all the bookkeeping consequences on both sides.

 

[Bad Hand]

I have lived in the same house for 17 years never late with the rent and always paid the utilities on time. The Landlord was wanting to evict me or froce me to move until this year. Now he wants me to stay I am looking to move since I qualify for rental assistance due to the COVID BS shutting off my income. I have a friend that is renovating a house so I can rent it. I guess you could call me a long term renter.

 

[K99]

Bank owned property. They'll evict, clean it up and auction it off. There are some special laws that make it slower for tenants due to the 2008 meltdown. Landlords get a break? That funny. They'll be billed by the banks for any shortage. Then they can go BK, at least for now.

Cant BK out of the depreciation. You have to pay that back to the irs irregardless

 

[Jeff B.]

From the other thread...


I can see a big increase in "squatting" as people break into unoccupied dwellings and make themselves at home...

We don't have a second house, but if I did, I'd be increasing my ability to maintain surveillance.

Something like that, you need to nip in the bud.

Jeff B.

 

[Lurker]

Cant BK out of the depreciation. You have to pay that back to the irs irregardless

He he he.....you said 'irregardless'. Grammar asses heads are sploding all over.

 

[K99]

He he he.....you said 'irregardless'. Grammar asses heads are sploding all over.

thats part of the reason i'm about done here

 

[Lurker]

thats part of the reason i'm about done here

Oh don't go. Just have fun with it.

 

[Fenwick Babbitt]

We are having a Marxist tyranny imposed on us. They will eventualy shoot the landlords, seize all private housing, or run it like section 8 with government managers.
Nationalizing all housing stock is also on the table, or just letting the banks foreclose and then have the federal reserve buy it all up.
Ain't Marxism grand, Shadowman?

There is a strong possibility of this happening, very strong

 

[Ractivist]

Yo

thats part of the reason i'm about done here

Your going to need tougher skin for the future. Consider this a good opportunity to practice, no what I mean.

 

[Groucho]

Yo

Your going to need tougher skin for the future. Consider this a good opportunity to practice, no what I mean.

I see what you did there.

 

[ainitfunny]

Can you even imagine the s**ts***m they would create by NATIONALIZING The choice property and homes of politicians like Nancy Pelosi, and “celebrity” Movie,&TV, entertainers, Vips, Wall street wealthy, Corporate executives, Corporate property, Properties in trusts, And “Upper eschelon Public servants”, Bankers, stockbrokers, basketball and other million dollar sports athletes, , lawyers, politicians, Professors, gangsters and mafia, Church property, paid off homes and land, property Investment companies and Etc.?

Ain’t gonna happen, except maybe to the lowest Economic class slice of our population. ($15,000-$100,000 yr?)

 

[Groucho]

I'm really conflicted by this one. On one hand, a deal's a deal. On the other, if ones income is destroyed by the edict of some sh*t for brains politician, the politician and political entity should pay the rent.

If someone is a plain dead beat, fine, you're out. However, if the guy/gal/family got blind sided by the actions of some butt head politician pandering to the scamdemic, then the state should pick up the tab for rent, food, etc of people who got clobbered by the actions of the governor.

Make the bastard politicians and bureaucrats responsible for the harm and damage they do.

During some hard times in my life, I worked as a line cook. It's tough work and the pay is lousy. Also, good luck getting 40 hours at dead minimum wage. Those people in the food service industry are most impacted by this shut down foolishness.

 

[Ractivist]

Thirty hours is the new norm, for reasons that pertain to health insurance, hhmmmm

 

[Doomer Doug]

Biden will do whatever it takes to keep the HOWLING MOBS from shredding him to pieces. What the final result will ne is basic universal income for the mob and destruction of the middle classes. Think Kulaks in the 1920's Ukraine by Stalin.

 

[Bps1691]

It will definitely not be boring at any rate.

"You will own nothing, and you WILL be happy." I hope that comes with some of the really good drugs ....

In the old USSR didn't it come with government made cheap vodka?

 

[Nich1]

then the state should pick up the tab for rent, food, etc of people who got clobbered by the actions of the governor.

So, where do you suppose states would get the money to do that? It's called TAXES. Are you willing to have your property taxes tripled (or maybe even worse)?

I understand your premise...and I agree, it is a terrible thing for many people. But, it's one of those "no win" situations. I don't know the answer.

I also consider the landlords who have mortgages. What are they supposed to do? They are going to lose, too. Many retirees had planned to have a rental property or two to supplement their income, only now to have that pulled right out from under them

It's a mess. Of that statement, I am sure.

 

[DryCreek]

tenants do not have a right to secure lodging

They certainly do if they keep current with their rent obligation.

 

[raven]

They certainly do if they keep current with their rent obligation.

that isn't a right
it is a contract bound by agreement between the parties
yer quibbling

 

[Groucho]

So, where do you suppose states would get the money to do that? It's called TAXES. Are you willing to have your property taxes tripled (or maybe even worse)?

I understand your premise...and I agree, it is a terrible thing for many people. But, it's one of those "no win" situations. I don't know the answer.

I also consider the landlords who have mortgages. What are they supposed to do? They are going to lose, too. Many retirees had planned to have a rental property or two to supplement their income, only now to have that pulled right out from under them

It's a mess. Of that statement, I am sure.

Hey Nich1, sorry I wasn't more explicit. By "state," I meant governing body up to and including the feds who can pass trillion dollar bills to help out their buddies and themselves. I'm just pissed that everybody says peoples' businesses are going under due to Covid. That's a big effing lie. Their businesses are going under due to stupid and power trip inspired laws and the people be damned. It would be wonderful if people said F. U. to the crap for brains politicians and revolted. But that's another story for another day.

 

[bobfall2005]

Its not a right. Its a contract.

And the story was misrepresented from the start.