Covid 19 Calm
The owners of Limestone Investments has been through 2 of these rodeos: 9/11 and the mortgage bomb. We have gray hair to prove it. These rodeos are stressful and everyone becomes stronger from these experiences. We have been preparing for an event like this for the last 2 years. We were ready before it happened. Limestone Investments was built to operate remotely: we are flexible, lean and everyone on our team has been working remotely since 2005. We are still functioning as before.
Many tenants are not aware owners have a mortgage to pay. Owners are in the same boat you are and could lose their jobs too. In many cases, the mortgage is nearly as much as the rent. If you don’t pay rent, the owner can’t pay the mortgage. If the mortgage isn’t paid, the bank can foreclose on the house, send you tenant packing and sell the property. That’s a worse case scenario of course and that process takes months. Here some options your owner would probably accept:
- Departure – Even though your lease has not expired, the owner would let you out with a 30 day notice. This enables you to leave gracefully. Any difference between the security deposit, repairs and rent could be paid back in installments. You could move in with family or somewhere which doesn’t require a monthly obligation until this craziness ends.
- Deferred Rent: You would pay what you can and the balance would carry forward without late fees. This deferment could be as much as 2 months but collateral would be required. Title to your car, jewelry or something of value would be held. This would buy you a couple of months until you get another job.
If you or your family is short of food or basic necessities, our team will pitch in and help you. We can’t pay your rent but we can provide essentials to make it until you are back on your feet. Just ask.
We have been warning you of an impending correction for about 2 years now. If you were not paying attention, here are your options:
- Mortgage Relief – You should reach out to your lender and ask what their policy is and what kind of deferment you can get. Be sure to ask if a deferment will impact your credit and if you will receive late fees. Most mortgages are serviced by a third party run by 12 year olds. It will be super important to stay on top of them. What the lender may promise may not actually conform to the third party servicer. Watch your statements and credit carefully.
- Line of Equity: If you are sitting on a bunch of equity, you may be able to get a lender to provide you with a quick and easy line of equity. If you don’t have a resource, please contact your property manager. Every property manager has a preferred mortgage broker.
- Temporary Loan: The owners of Limestone Investments have the ability to lend to owners on a case by case basis. The rate would be 12% with a principal/interest note and payments starting on 7/1/2020. The maximum term would be 3 years and the loan will be recorded. You need to speak directly with Jim.
We are operating normally. This means you will get paid usually within a couple of days of finished work. The only delay could be getting verification of completed work. We were prepared for this and have plenty of funds to pay vendors. More importantly, we care about your safety. You know what to do so we are not going to bore you with how to be safe. If you or your family is short of food or basic necessities, our team will pitch in and help you. We can’t pay your rent but we can provide essentials to make it until you are back on your feet. Just ask.