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Eviction Moratorium Ends on July 31: What's Next for Homeowners?Eviction Moratorium Ends on July 31: What's Next for Homeowners?

Eviction Moratorium Ends on July 31: What’s Next for Homeowners?

eviction moratorium ends

It is July 31, 2021, and the eviction moratorium is being lifted leaving millions of tenants across the country vulnerable to evictions. The eviction moratorium was put into place to protect tenants during the recession as homeowners lost their homes at unprecedented rates. Eviction affects almost everybody involved. While tenants lose their homes, landlords lose whatever chance they have to collect what they have owned. 

Present Biden called Congress Thursday to extend the time period, however, nothing is confirmed yet.

When Was the Eviction Moratorium Placed?

Eviction Moratorium keeps the landlords from evicting their tenants due to non-payment of rent. With millions of people losing jobs and an economic downturn in the US, the rent arrears just increased exponentially. As more people faced financial hardships, a moratorium was placed stating “an event that no one anticipated that shut down the economy and caused millions of Americans to become unemployed overnight shouldn’t be the reason that millions of people lose their homes.”

However, the moratorium order states: “This order does not relieve any individual of any obligation to pay rent, make a housing payment, or comply with any other obligation that the individual may have under a tenancy, lease, or similar contract,” it states. “Nothing in this order precludes the charging or collecting of fees, penalties, or interest as a result of the failure to pay rent or other housing payment on a timely basis, under the terms of any applicable contract.”

Now that the moratorium is being lifted, what’s next for homeowners?

Although many have benefited from the moratorium period, there are still millions who are on the verge of becoming homeless. They will most likely be forced to seek shelter in their friends or family as the moratorium period ends officially.

“There are three scenarios that may happen when the moratorium lifts, and I think we’ll see a combination of all three,” Zach Newman, one of the policy creators, explained. “One part of this is you’ll have tenants who say ‘this is too much. I owe this money. I’m very stressed out by this. I don’t want to get sued. I don’t want to have an eviction on my record. I’m just going to move out.’ And they just leave, and they move to a shelter or to a hotel, or they move in with family. The opposite is you have the landlord say ‘look, rental assistance is available. I know you’re in debt. We’re not going to evict you. Let’s just work together on this application and get this balance paid.’ The third scenario is, in some of these cases — and it’s hard to say what percentage — you’re going to see formal eviction proceedings undertaken. Notice placed on the door, the tenant has to go to court, and they face eviction in front of a judge.”

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