In today’s post, I’m going to do a quick round up of where things are with efforts to mitigate the economic impact of the pandemic. The big legal news over the past 24-48 hours is whether Congress will pass the huge bill I mentioned earlier. The idea behind this is to put a lot of cash and financial support into the economy to keep things afloat.
The stock market jumped 11% today because investors think it might pass, and late tonight it sounds like lawmakers reached a deal, so it should pass soon. Let’s hope $2 trillion is enough! Will definitely need to write a lot more about this tomorrow.
The other big looming news that I’m watching nervously to see what happens on Thursday. The government counts up all the unemployment claims from the states and then releases the number early afternoon on Thursday. Some are expecting as many as 2.25 MILLION newly unemployed people over last week and this week. That would be breathtaking.
Finally, and this just came out tonight, LA’s Mayor, Garcetti, announced that he would shut off the water to nonessential businesses that refuse to close, saying the peak in cases here in LA is about 6-12 days away. This is a very bold move, and I have a feeling there are going to be a lot of arguments about whether he can or can’t legally do that, but it won’t matter in the short term.
More about what you can and can’t do right now
Lots of conversation these days here in the LA area about what it means to “stay in place.”
The weather is turning nicer than usual, so this weekend I noticed a lot people were at the beach, including me to be honest. On the sand, anyway, it felt like people were staying pretty far apart. My family was. On the sidewalks leading to it, not so much, which is maybe why a lot of the cities are closing the parking lots near the beaches. I think San Diego County closed all the beaches.
It seems to me that if you’re getting some exercise at the beach, then that should be permitted. If you’re throwing a party with your friends around a bonfire at Dockweiler, that should not be.
I have a bad feeling if people keep flouting the rules, there will be pressure to lock down tighter. If you break the “safer at home” orders, then the police could charge you with a felony, but I don’t think they’re at that point yet.
This post on LA Curbed is a fairly useful summary: Coronavirus Los Angeles: What’s closed, where you can go
The latest on mortgage payments
Up until this pandemic hit, if you couldn’t make your mortgage payment, then the bank could eventually foreclose on your house. Over the past couple of weeks, however, the federal government has “suspended” forecloses.
That’s good, especially if you’re unemployed, can’t readily get a new job, and unemployment benefits aren’t enough to cover you.
However, the way the foreclosure suspension actually works for you will vary depending on what kind of loan you have. If your loan is backed by Fannie Mae, Freddie Mac, FHA, VA, or Rural Home Services, then click on the link for the details.
If your mortgage is not back by those agencies, then the Federal Reserve gave some helpful guidance to your mortgage company (they call them “mortgage services”) on some technical details about how to work with you.
Keep in mind that, even if you get a temporary break on your mortgage during this pandemic, it’s likely that you will have to make up the lost payments somehow, eventually. That’s the way they did it during the Great Recession.
You might not be sure what kind of loan you have. I’ll try to go into some more detail soon!
What about rent?
Sixty percent of rent in California. With rent, an eviction usually happens more quickly than a foreclosure. The State of California did something kind of interesting to suspend or slow them down during the pandemic.
On March 16, Governor Newsome basically told the cities that they could restrict evictions if they want to and if your landlord is trying to evict you because you lost income or your expenses increased. Put differently, my read is that people who aren’t being financially impacted by this can’t simply decide they aren’t going to pay April’s rent.
As of my last look, the Governor’s Order expires at the end of March, but I would he would surely expand it, as would the cities.
Unlike evictions, it sounds like EVERYONE with a Federal student loan will automatically get 60 days interest free on their loan. EVERYONE can suspend payments for two months to keep a little more cash in their pocket, but there are some reasons why some of you might not want to do it.
The announcement came out March 20, but it’s retroactive to March 13.
CHECK THOSE AUTO PAYMENTS FOLKS—especially with a new month just around the corner!!!
The telecom companies have promised not to terminate your service if the effects of the pandemic prevent you from being able to keep up with your payments.
In California, most (maybe all) utilities won’t be disconnected if you can’t pay. This gets a little complex if the utility service is being run by a county or city in California, but I would think almost all of them, by now, are following the same policy.
Southern California Edison and Pacific Gas and Electric are following the same policy.
I know, I know–you don’t care about robocalls right now! I just thought this would be a random legal “thing” you wouldn’t expect from a pandemic.
Remember robocalls, one of the other things that our shared hatred of united before coronavirus? Well the F.C.C. just gave hospitals and healthcare provides permission to go ahead and robocall and text you about health alerts for a bit. Makes sense.
On the bright side
It seems like New York City is entering the darkest hours of the pandemic right now, and Garcetti said Los Angeles would be doing the same over the next six to twelve days.
That sounds scary to be so close to the peak, but I want to reflect on it for a second. While this could go on for a while after it peaks, I for one am ready to get the darkest days behind us.
Not to trivialize the pandemic, but I hate December 21 because it’s the darkest day of the year. The days leading up to it and following it are pretty dark too, but at least, on December 22, the days start getting just a few minutes longer each day.
We’re almost there 🙂
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