On March 27, 2020, the federal government implemented the Eviction Moratorium. What was intended as a ‘quick fix’ for three months lasted for well over a year and is still in place, but not indefinitely.
The government implemented the moratorium to help renters stay in their homes even while they couldn’t cover their rent. This quickly turned into a big problem for landlords, though. Without rental income, many landlords can’t cover their mortgage, which leads them to the risk of foreclosure.
If you’re in this position, you may need to sell your house fast to avoid the risk of having a foreclosure on your credit.
What is the Eviction Moratorium?
The eviction moratorium protects renters from being evicted due to not being able to pay their rent.
While the moratorium has been in place since March 2020, Governor Pritzker amended it slightly in November 2020, to protect landlords too. The moratorium is limited to renters with income less than $99,000 a year or $198,000 if married filing jointly.
The update also requires renters to prove to the landlord in writing that they can’t make their rent payments due to a loss of income or higher expenses due to the pandemic. During this time, renters are also highly encouraged to make at least partial payments when they can.
What Reasons can a Landlord Evict under the Ban?
The eviction moratorium protects renters who can’t pay their rent because of financial hardship due to the pandemic. However, landlords can still evict renters if there is any criminal activity within the premises or they violate lease terms that put the property and renters at risk.
Why did the Eviction Moratorium End?
The eviction moratorium hasn’t officially ended, and Governor Pritzker promises to follow what the CDC/federal guidelines do. As of right now, the CDC extended the federal eviction moratorium through October 3, 2021, but the Illinois ban goes through September 18 only because under Illinois law, executive orders can only last for 30 days. Experts expect Pritzker to extend the ban again.
Will Landlords Recover from the Ban?
Here’s the big problem – landlords are suffering at the hands of the moratorium. Without rental income, landlords face Pre-foreclosure, foreclosure, late payments, and other penalties. Many landlords are forced to sell their Chicago house fast so they don’t ruin their credit or have to deal with the legal aspects of a foreclosure.
Even if landlords can keep the property, it takes time, effort, and money to find new qualified renters. Evicting tenant’s costs money, as does screening new tenants, which leaves landlords in quite the difficult financial spot.
So, what can you do? If you’re a landlord stuck in an eviction ban, you may need to sell your house fast to avoid foreclosure. Fortunately, at Onyx Homes, LLC we make it easy to sell your house fast in Chicago. Simply contact us, get a fair no obligation cash offer and close on your house in a matter of weeks! Landlords work with us for reasons including convenience, speed and less hassle than going the traditional route of listing with an agent. You can also book a call with us or you can simply fill out our online form and we will get back to you promptly.