1. People don’t have to pay rent.
.
2. The virus stimulus is an additional few hundred dollars A WEEK, on top of the norm. Some people are pulling in $400-500 a WEEK (1600-2000 a month) to not work.
.
3. 1600-2000 a month, with no rent = like winning the lottery. They’re riding the good times while they can.
I might be viewing things through old-fashioned, sclerotic eyes that look for such outdated concepts as honor, integrity, and paying your debts, and forgive me if I'm being naive, but isn't that rent, or that mortgage payment, going to come due, sooner or later? IOW, is it just going to be "written off", or is it not?
I worked for years with mortgage recasts --- where the amount due is modified into affordable payments going forward, with the term of the mortgage possibly being adjusted (i.e., you take longer to pay it off) --- and I can tell you that it is an absolute accounting nightmare. It's not something that any lender in their right mind, would ever want to do. I don't know how they're handling it during the pandemic, I've been out of the business for years. I do know, however, that the entities that
own those mortgages --- private pension funds, financial institutions, sometimes even individuals --- expect their monthly passthrough payment.
That's why they buy the mortgages in the first place. When that doesn't happen,
"ain't nobody happy". I don't presently own any of those critters, used to, but not anymore. As the Poles say, "not my circus, not my monkeys".
Topic: What is happening in the restaurant industry? (Read 7610 times)