Tuesday, March 31, 2020

Penalty Free Withdrawals of up to $100,000 allowed for 401(K) Retirement Accounts – Coronavirus Stimulus Bill 2020

Section 2202 of the Coronavirus Stimulus Bill allows for penalty-free withdrawals of up to $100,000 from 401(k) retirement accounts. Typically, if you wanted to withdraw money from a 401(k) retirement account prior to the age of 59 1/2 a 10% penalty would be due. Section 2202 now eliminates the penalty.

Besides the temporary elimination of the penalty you can prevent the payment of income taxes on the withdrawn amount so long as you return the money to your 401(k) account within 3 years.

Section 2202 is available to anyone who needs a “coronavirus related distribution” or is experiencing “adverse financial consequences” because of the COVID-19 pandemic.

Section 2202 makes it easier to borrow money from your 401(k) by increasing the limit from $50,000 to $100,000. It also extends the payment date for any 401(k) loans due in 2020 for up to one year.

Section 2203 waives the rules for retirees who are required to withdraw money from tax-deferred accounts and who are required to pay taxes on the withdrawals in 2020.

Monday, March 30, 2020

Tenants Living in Properties that have a Federally backed Mortgage Loan Cannot Be Evicted During the COVID-19 Emergency – Coronavirus Stimulus Bill 2020

Section 4024 of the Coronavirus Stimulus Bill prevents property owners with Federally backed mortgage loans from evicting tenants for non payment of rent.

The eviction moratorium applies to any tenant living in a cooperative, condominium, 1 to 4 family building or a multifamily (5 or more residential units) building. The eviction moratorium also applies to tenants living in housing under the Violence Against Women Act of 1994 and rural housing under section 542 of the Housing Act of 1949.

The eviction moratorium prevents a property owner from serving notices or starting legal proceedings in court for non payment of rent. The eviction moratorium prevents a property owner from charging late fees or any other fees for non payment of rent. A property owner must give a minimum 30 day notice to vacate after the expiration of the eviction moratorium.

The eviction moratorium begins on March 27, 2020 and remains in effect for 120 days.

The eviction moratorium does not apply to Federally backed construction loans or any other type of Federally backed temporary financing.

Tuesday, March 24, 2020

Coronavirus is a Natural Disaster of Immense Proportions that Impacts Real Estate - Latest News - 3-24-2020

In the past 3 months COVID-19 aka the coronavirus pandemic has upended all beliefs regarding the speed in which fear can grip the world. Coronavirus is a natural health and economic disaster of immense proportions.

The impact of the coronavirus pandemic upon real estate will be felt for years to come.

First. The negative economic effects of the coronavirus has caused the Federal Reserve to use every available policy tool in its arsenal including the lowering of interests rates close to zero. The U.S. Government is poised to pass an almost 2 trillion dollar stimulus package to save the economy. However, the question remains: Will all of the monetary and stimulus actions be enough?

Fed seen cutting interest rates to 0% soon in bid to help weather coronavirus storm

Monday’s dramatic Federal Reserve announcements, explained

Negotiators on ‘2-yard line’ on coronavirus economic rescue plan

Second. The U.S. has restricted travel from Europe and China. Cities and states are declaring emergencies. Business, marketing, trade and sporting events are cancelled. Our ability to engage with each other, to move around or to gather freely has become restricted.

Trump clarifies comments on Europe travel after initially saying restrictions applied to cargo, not just people

Markets suffer record meltdown as global coronavirus alarm grows

Coronavirus: Which countries have travel bans?

Third. The stock market has fallen to levels not seen since the Great Recession. China's supply chain is frozen. Businesses and corporations are experiencing cash flow and debt problems. The lack of cash flow will lead to job losses. Citizens are nervous about their families and resources so they are beginning to "hoard". Citizens are nervous about health care and job security. The recent branding of the phrase "social distancing" as a means to prevent the spread of coronavirus requires citizens to stay away from crowed places and mass events. It also requires keeping a distance (6 ") between you and your neighbor. Yet if people are not out and about, socializing, travelling and spending money then the economy slows down. Less economic activity means less money for real estate development and investment.

New York real estate hit by coronavirus, market decline

How coronavirus is impacting the housing market

As Coronavirus Spreads, Real Estate Deal making Slowed By Travel Restrictions

‘Social distancing’ comes at a massive economic cost, but it’s now the only way to save millions of lives.

National Association Of Realtors Survey Shows How Coronavirus Has Started To Impact The Real Estate Market

Coronavirus’ Impacts On Real Estate: Why You Need To Think Short-Term And Longer-Term

It is our hope that the ultimate effects of the coronavirus will not lead to a worldwide depression. Instead it is our hope that the strength of our communities, our governments and our businesses will lead to the fast recovery of our collective health and economy.