Real Estate Week In Review 3/31/20

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It’s been a busy week as many of us work from home or shelter in place. To help my clients sift through the latest economic and market update headlines, I’ll publish a week in review. Here’s a link to last week’s update in case you missed it.

MORTGAGE 90-DAY GRACE PERIOD

On Wednesday, March 25th Governor Newsom announced that Wells Fargo, Citibank, JPMorgan and US Bank agreed to a 90-day grace period on mortgage payments in California. Check with your lender to see how they are addressing the crisis and how they are helping their customers.

The Federal Deposit Insurance Corp (FDIC) asked banks to assist consumers affected by COVID-19 by taking “reasonable and prudent steps.” Additionally, the Federal Housing Finance Agency, the Federal Housing Administration and Fannie Mae announced that hardship forbearance — a temporary halt or reduction in mortgage payments allowing a borrower to work through a difficult situation — is an option for distress borrowers.

SANTA CLARA COUNTY SUPERVISORS APPROVE COUNTYWIDE MORATORIUM ON COVID-19 EVICTIONS

County Supervisors, in its first-ever virtual teleconference, passed an Urgency Ordinance. It established a temporary and limited moratorium on eviction through May 31st. Important aspects of the ordinance include:

Prohibits eviction for failure to pay rent for renters financially affected by the COVID-19 crisis.
Applies to renters who can document “substantial loss” as a result of the COVID-19 crisis.
Affects both residential and small business commercial rentals.

CARES ACT SIGNED

The $2 trillion economic relief plan (CARES Act) related to the economic effect of the coronavirus pandemic was signed on Friday, March 27. Unparalleled in scope and size, the plan is aimed at helping Americans, businesses, hospitals and the economy.

In general, the package includes:

An extra $600/week of unemployment for up to four months
Loans to struggling industries (such as the airlines), cities and states battling COVID-19
Grants to health care providers to fight the coronavirus
Credits to businesses for keeping workers on their payrolls during the pandemic
Sends money to state and local governments as unemployment claims rise and tax revenue drops as only essential businesses remain open

LOCAL RESOURCES

As our communities pull together, it’s heartening that many organizations have programs designed to help those who are struggling. Thank you to County Supervisor, Mike Wasserman, and Sereno Group for pulling together these lists.

REACH OUT & CONNECT

Even though I’m sheltering in place at home with my family, I remain available virtually via phone or videoconferencing. I remain committed to serving my clients and being your source of the most accurate and current information available. If you have helpful resources to share or want to connect, please reach out! We’re in this together!

#SiliconValleyStrong