Number of Evictions Increasing as Financial Crisis Looms

By  //  August 21, 2020

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As more eviction notices are being served, there is more concern for the U.S. economy if lawmakers don’t do anything about it.

As more eviction notices are being served, there is more concern for the U.S. economy if lawmakers don’t do anything about it.

Landlords will eventually begin to default on their mortgages around the nation, as the coronavirus pandemic continues to wreak havoc around the globe, especially in the U.S.

Tens of millions of people who rent in the states are at risk of being pushed out of their homes because of overdue rent that they haven’t been able to pay because of the lockdown mandates.

Millions Could Be Put Out in Time of Crisis

In a time of economic crises, tens of millions of people could be facing the frustrating possibility of not being able to afford their rent. Tendayi Kapfidze, a chief economist, says that this would be catastrophic, as it would reach far beyond the rental industry.

He continues by saying that it would also affect the housing market of single-family housing, as well as the economy at large. The ripple effect could be felt shortly after, which is going to affect everyone.

While there have been holds on evictions throughout each state as the coronavirus pandemic has spread throughout, these holds are beginning to lift again and expire.

As federal protection for renters like this falls away, more and more people find themselves between a rock and a hard place as they struggle to hold onto their jobs, let alone pay bills and the rent.

Financial Crisis Imminent Because of Eviction Wave

A wave of evictions all at once could set off a financial crisis that would inevitably affect other industries as well. Because most landlords rely on rent payments as at least a partial form of income, people that own property also have less to work with right now as well.

It also means that if someone is forced out of a home or an apartment because they can’t pay the rent, the landlord then has to find someone else to rent it, which could be pretty tough in the current climate. The economist explains that this could result in a decrease in home values overall, even those that are still being occupied by the owner.

Because everyone is affected across the country, Kapfidze says that it’s vital that something is done about this at a federal level. Otherwise, there is a very real chance that it will just get worse.

With millions of people currently collecting employment benefits, the U.S. economy continues to try and swing back from a recession as a result of the lockdown.

If you find yourself in a similar situation to this right now and you’re not sure where your next paycheck is going to come from, it’s worth considering temporary financial relief.

Short-term loans like personal and car title loans are a great option to help keep a roof over your head for now until you’re able to go back to work again.

With all the uncertainty surrounding rentals and the job market, it’s worth finding a temporary fix that can ease the problem.