Tag: homes

California eviction moratorium

California Eviction Moratorium Ends, Renters Have Protections

California Eviction Moratorium Ends, Renters Have Protections

The California eviction moratorium ends September 30.  Foreclosures have spiked as those moratoriums ended. But for renters, there are still options, particularly locally with Los Angeles County and City of Los Angeles moratoriums on evictions.

How We Got Here: September 30 Deadline

Bill Signed

Back in June, California governor Gavin Newsom signed legislation extending the California eviction moratorium.  While federal eviction protections ended last month, California was still protected. The end date for Calif renter protections is September 30, 2021.

Legislature on Break

The COVID-19 Delta variant is running rampant. You’d think that the California state legislature would pass a bill extending the deadline. In June, legislators beat the deadline with days to spare before June 30. However, now, there are just hours to go.

The legislative session ended weeks ago on September 10. So the people California sent to Sacramento are not there to extend the moratorium.

Regardless, it appears that state representatives don’t have the will to extend the protections again. “I believed our eviction protections for tenants should be extended beyond September 30. The Delta variant and the end of many unemployment benefits make that more urgent. Unfortunately, some of my colleagues feel differently, and there’s not consensus for that,” said David Chiu of San Francisco.

So, California’s legislature is out of the picture. This leaves Gov. Newsom as the last hope to extend the landlord restrictions. However, earlier this week, Newsom signed an affordable housing package.  Missing in that and his statement was any indication he’d extend the protections.

What Renters Can Do When California Eviction Moratorium Ends

Los Angeles County Eviction Moratorium

First, the Los Angeles County moratorium on evictions is still in place. The Los Angeles County Board of Supervisors extended it to January 31, 2022.

City of Los Angeles Moratorium on Evictions

Also, there’s an LA eviction moratorium protecting renters in the City of Los Angeles until August 1, 2022.

Court Protections for Some California Renters

Further, California renters still have hope.  A renter can submit a declaration that they’re unable to pay the full rent.  City of Los Angeles renters can apply for relief of 100% of rent and utilities owed.  Statewide, beginning Oct 1 and going through March 31, 2022, renters earning 80% of the area median income will be protected by a process through the courts . If facing eviction in state court, renters will need to show evidence they applied for rental assistance, so this is a key step.

Bankruptcy Can Protect Renters in Some Cases

Finally, if there’s the ability to make some sort of monthly payment on back-rent, a Chapter 13 bankruptcy can maybe be an option. Because landlords are sacred cows in bankruptcy, renter protections are thin. But it could mean working out a deal if you have enough income to make normal rent payments, cover living expenses, and still have money left over for catching up quickly.

In short, while not perfect, it seems the best shot for CA renters with the looming end of the California eviction moratorium is the state program. This is not a guarantee that this will protect renters from a future eviction if taken to court. However, it’s at least one measure California renters can take to try to have a defense.

 

eviction moratorium california

Eviction Moratorium 2021, California, and Supreme Court

Eviction Moratorium 2021, the Supreme Court, and California

Supreme Court Rules on Eviction Moratorium

Sept 30 Update:  There are still some renter protections now that the California eviction moratorium ends today. Click for more details.

In 2021, eviction moratorium by the CDC has been in place since for about a year-and-a-half. It’s been protecting people and keeping them in their homes during a global pandemic. You probably heard that the Supreme Court ruled on the eviction moratorium, ending the protection. What does the Supreme Court ruling mean, and especially to California renters?

The Supreme Court ruled in a 6-3 opinion that the eviction moratorium was not constitutional, with the three liberal justices dissenting.  A key part of the ruling said

“It would be one thing if Congress had specifically authorized the action that the CDC has taken. But that has not happened. Instead, the CDC has imposed a nationwide moratorium on evictions in reliance on a decades-old statute that authorizes it to implement measures like fumigation and pest extermination. It strains credulity to believe that this statute grants the CDC the sweeping authority that it asserts.”

Bottom line is that the Supreme Court said that if the eviction ban were to continue, the right way to do it would’ve been through Congress, not the CDC.

What about the Eviction Ban and California?

The good news is that the eviction moratorium in California is still in place, for now. Back in June, California governor Gavin Newsom extended the existing California eviction ban until September 30, 2021.

After yesterday’s ruling , the California governor wrote, “California renters will NOT be impacted by this news, the state’s eviction moratorium remains in effect. We’re focused on ensuring tenants and small landlords get the rent relief they need under California’s renter assistance program, the largest in the country.”

As a result, despite the Supreme Court ruling, the California eviction moratorium protects Californians until September 30, 2021. Given Governor Newsom’s statement yesterday, it seems that he’s ready to extend protections for California renters into October and beyond.

READ MORE: Successful court ruling for Los Angeles eviction moratorium

Bankruptcy and Evictions

When the California eviction moratorium ends, it’s not clear if bankruptcy can provide much help. In some cases, a Chapter 13 bankruptcy could help cure rental arrears. However, debtors must repay the arrearages for executory contracts and unexpired leases  “promptly” in the Chapter 13, per 11 USC 365(b)(1).

Here’s where it gets interesting. Most Chapter 13 cases are 5-year terms. That doesn’t seem very “prompt.” Given the nature of rental agreements, five years isn’t a reasonable time to cure a one-year lease. Experience shows that it sometimes can be done in six months.

Most landlords don’t want vacant property, or to have to go find a new renter. Sometimes some money is better than none. A 6-month period has worked in some Los Angeles bankruptcy cases, but it needs to get the consent of the landlord. Unfortunately, there’s nothing to compel the landlord to be reasonable. Each case is different, so it may be worth contacting a local bankruptcy attorney for a consultation.

Los Angeles county median home price

Los Angeles County Median Home Price (2021)

Los Angeles County Median Home Price (2021)

The Los Angeles County median home price in 2021 can be tricky to determine. There are different sources that say different things. It’s not clear as of this writing in early 2021 which of the many options will be relied upon by courts and trustees.

This is provided as information only, and is not legal advice. If you are thinking of filing bankruptcy, do not rely upon this information. You are assuming all risk and are literally gambling with your home. You will have only yourself to blame if you use the wrong numbers for the Los Angeles County median home value.

See a bankruptcy attorney for more updated information before you file.

Average is not Median

los angeles county median home value
The Los Angeles County median home value is not the mean

Before we can determine what the Los Angeles County median home price is, we’ll need to know what it’s not. A median is not the same as the average. This takes us back to high school math, but a quick couple of definitions:

  • Average (or mean): this is where you add up the data, and then divide by the number of data points
  • Median: this is where you list all the data, and then take the number which is at the midpoint

So, as you can see, the median is not the same as the L.A. County average home value.

The Median Changes Over Time

Because the median is the midpoint of all the data, each time there’s another home sale, the median changes and moves. You may figure with a random distribution of data, there would be an equal likelihood that future sales will be about half above and half below the median, keeping the median the same. But home prices change over time and are not static, and particularly during a virus pandemic like the COVID-19 coronavirus we had last year in 2020.

For example, you might find some data sources that list the median home prices for last year, but only through December. In December, there were a new round of stay-at-home orders, as the number of COVID cases, hospitalizations, and deaths increased.

What impact does a government order to shelter-in-place have on home sales? Can you assume that houses would sell for the same prices in December around the holidays as they do during the summer when people move a lot and kids are usually out of school?

The Los Angeles County median home price is not the same as that for the L.A. area

Los Angeles County is one of the largest counties in the United States, with over 4,000 square miles. While you may find data for the metropolitan area, that’s very different than the numbers for Los Angeles County. Why? Because L.A County goes from South Bay all the way up to the Antelope Valley and Lancaster. The Los Angeles County median home price is pulling together data from all these.

Los Angeles County is home to about 10,000,000 people, while the city of L.A. has “only” 4,000,000. If you use only city data, you’re missing out on home values in remote areas in LA County like Littlerock and Pearblossom on the 138 and on the way to Vegas.

The Median Home Value is not the same as Median Home Sales Price

You can find some sites which average the values of the homes in the L.A. area, or even Los Angeles County. The problem with that is this: you’re using their own estimate about the Los Angeles county median home values, even those that didn’t sell, when what you’re really needing is the sales price of homes that actually sold.

After reviewing all the above, you can see that we’re looking for a very specific thing here, and no one website reports the Los Angeles County median home price, or has information that in 2021 is depended upon reliably as the “go to” source for Los Angeles County median home value information. Over time, maybe one place will emerge, but for now there’s just a few “almost there” entries.

Some Data Sources Which are Close

which data source can provide the los angeles county median home price
Which of the various data sources is the right one?

With all that being said, you can understand the challenge of finding the Los Angeles County median home price.  Most websites are using averages, some have only the L.A. area, and none of them let you have access to the data of all the home sales so you can calculate the median yourself.

 

Zillow: this company is famous for using its proprietary “Zestimate” to approximate home values. For example, if you go here, you can find what Zillow calls “the typical home value of homes in Los Angeles.”

But that number isn’t clear…. What does “typical” mean – average or median? Remember, they’re different.  Home value or home price? There’s no indication this is relying on sales data. And for what time period? Now, at this snapshot in time, last month, this year, or last year?

The website doesn’t say what the Los Angeles County median home price is. It also doesn’t say if it includes single-family homes, is only single-family homes, or something else.

Realtor: This website features real estate, but if you dig down deep enough, you can find market data, research, and trends. It provides data by month, not year, and appears to be providing listing prices, not sales prices.

Redfin: Redfin is another national real estate website, which tracks listings and sales, and helps connect home buyers to realtors. It has market data and trends, but seems to be restricted to only Los Angeles city, not all of Los Angeles county median home price info.

CAR: The California Association of Realtors also has some market data. But it cautions that the data which it is using comes from over 90 associations and counts “single family detached homes only” and “median price changes may exhibit unusual fluctuation.”

Trulia: Similarly, Trulia is a real estate website that tracks home sales and house prices. It has a way to filter for L.A. and show market information at the bottom of the page, but doesn’t show Los Angeles county median home price or value info.  It appears to list home values the way Zillow does, but it doesn’t appear to be relying on sales data.

News reports: You may find news reports from Los Angeles-based newspapers that report data on home sales prices.

Note: you may find some websites that provide spreadsheets of Los Angeles County median home price data, and lists medians by month. Taking the median of the medians isn’t the same as the median of all the sales data. It’s just creating garbage data. To find the true Los Angeles County median, you’d have to have access to all the sales data. This is something very few people have.

And that’s the problem:  no one person has the data, and different places which are close report different numbers for the Los Angeles county median home value.

While some of these are close, none of these seem to provide “the” number. Not one can be relied upon, especially for something which involves risking your home.

Summing up Los Angeles County median home price

Is there one bottom line source? No, and honestly, a lot of us are trying to sift through all this information to make sense of it. Maybe in the months ahead, one choice will crystalize as the one we all rely upon.

This will likely be after litigation and people guess wrong. Sadly, they will lose their homes in some cases because they guessed wrong on home value.  Currently, there is not one number that we can reliably “bet the house” is the median home price in Los Angeles County.

Be very cautious, use this at your own risk, and best of luck to you in your future.

Contact us

If you’re in Los Angeles County, request a case evaluation, which we can set up by Zoom.


    California bankruptcy exemptions can save your house.

    California Homestead Exemption to Save Your Home (2021 update)

    California Homestead Exemption – 2021 update

    The California homestead exemption can help you save your home from creditors. Chapter 7 bankruptcy is liquidation; the bankruptcy trustee can take your stuff. They don’t take the shirt off your back, but at some point they draw the line regarding what you can keep. These are the bankruptcy exemptions, and each state has its own. The California exemptions include a way to protect some home equity.

    There are two sets of California bankruptcy exemptions. Bankruptcy attorneys call these the 703s and 704s. The California homestead exemption is found in the 704s, at California Code of Civil Procedure 704.730.

    The California Homestead Exemption 2021

    In 2021, California homestead exemption increased dramatically. What this means to the person contemplating filing bankruptcy is that more of their home equity can be protected. They really do take houses in Chapter 7 bankruptcy. Previously (see below), the amount of home equity which could be protected was inadequate and hardly kept up with the inflated Calif real estate.

    But then in 2020, COVID-19 struck, and people were suddenly unable to pay their rent and mortgages. Partially in response to the pandemic, the state legislature passed and the governor signed a dramatic increase to the California homestead exemption.

    The result is a system which depends upon the location where the house is, and has nothing to do with marital status or age. And this makes sense, as a homeowner in Ventura County probably has a higher home value than someone who owns a home in Barstow.  So, now homeowners who’ve lived at a home for 4 years or more get a minimum of $300,000 of home equity protection, and a maximum of $600,000 of California homestead exemption.

    Some guidance on the Los Angeles County median home price 2020


    Spoiler alert on the above link: The trick is no one knows for sure what the data source for county median is. And if you haven’t lived at the property long enough, you don’t get the above protections. So you will want to consult with a qualified bankruptcy attorney before you risk your house.

     

    The Three Homestead Exemptions in California Before 2021

    The California homestead exemption can save your house.
    Don’t risk losing your house in Chapter 7. Talk to a experienced bankruptcy attorney about the bankruptcy exemptions and homestead exemption in California.

    Firstly, there’s the bankruptcy exemption that a single homeowner gets. This is in subsection (a)(1). In 2020, a single person who lives in a house gets to protect $75,000 of home equity under the California exemptions.

    Secondly, there’s a higher exemption for a married person’s residence. This is in (a)(2). The California homestead exemption for a married person is $100,000.

    Finally, if you can tick one of three boxes, you get the superduper $175,000 homestead exemption in California’s bankruptcy exemptions. To level-up and qualify for this, you have to either be:

    • 65 years old;
    • have a disability that prevents gainful employment; or,
    • 55 years old, and make below a certain income level that changes from time to time

    This may seem simple, but what is “disabled?” What is “as a result of?” What is the income level, and which time period is measured? You’ll want to speak to a qualified bankruptcy attorney in your area. But in the right circumstances, someone filing consumer bankruptcy can protect a lot more house equity under this third option.

    Spouses Sometimes Count

    A final note: a good thing about, in particular, the $175,000 California homestead exemption is that it extends to the spouse of the person filing Chapter 7. So if the debtor is, say, 63 years old, but their husband is 67 but really doesn’t want to file bankruptcy, the 63 year old who does file Chapter 7 bankruptcy gets the $175,000 homestead exemption in California anyway.

    Be careful in Chapter 7 bankruptcy.  It’s not always the best type of bankruptcies.

    Learn the differences between Chapter 7 bankruptcy vs 11 vs 13.

     

     

    You really should talk to a qualified Los Angeles bankruptcy lawyer, as you get what you pay for, and it’s not worth risking your home. If you don’t do this right, you’re literally gambling with your house.

    save home

    Chapter 13 can Stop House Foreclosure

    Chapter 13 bankruptcy can Stop  House Foreclosure

    Save your Home and Catch up on the Mortgage

    by Hale Andrew Antico, Esq.

    In August 2005, just before the bankruptcy laws changed, I wrote in this space that there was a perfect storm brewing for the average consumer.  Since then, the bankruptcy laws have changes (in the name of reform), and indeed, it is harder — but not impossible — to get a fresh start.

    One area where we can get into debt trouble and feel a financial squeeze is with regard to mortgage payments.  The past few years, property values have been soaring here in Southern California.  This has led to many people to refinance their homes and take “cash out” — in essence using their house as an ATM.  The result of this is that it leads to less equity and a higher mortgage payment.

    What happens if these homes with tapped out equity drop in value?  We’re conditioned to believe that property values only go up Up UP! in Southern California.  However, in 1989-1991, the real estate market peaked, leading to dropping property values.  The result is that many people were “upside down” in their homes, meaning that that they owed more than it was worth.  We expect this from a car loan since a car almost always depreciates faster than we can pay it off.  But with a house?  Yikes.

    Some experts believe that history may be repeating itself. Recently, economics experts are looking at reliable benchmarks like Price-to-Income Ratios and Price-to-Rent ratios and noting that home value are much higher than normal levels.  Even houses in your neighborhood are no longer selling within the same week they’re listed with someone offering $10,000 over the listing price.  Instead, we’re seeing “Reduced!” signs nailed onto those For Sale signs, and reading advice like that in the Los Angeles Daily News suggesting that you list your home in the lower 25% as related to the comparable homes in the neighborhood.  Is there a real estate bubble which will shortly burst, or is the housing market temporarily resting before it continues upwards and onwards?  No one knows for sure.

    If you find yourself in the awful situation where you fall one or two payments behind on the mortgage, there is still hope to stop foreclosure.  A Chapter 13 bankruptcy might be the solution.  This option allows you to get some “breathing room,” stop the collection calls and headaches, and even stop a foreclosure.  People can fall a few months behind, they want to catch up but the lender won’t accept anything but a massive lump sum payment that the troubled homeowner doesn’t have.  A Chapter 13 case can allow you to catch your breath as you demonstrate how you will catch up on your past due mortgage payments, but on a schedule you can actually stick to and afford.  This very helpful type of bankruptcy allows you to reorganize your debt and save your house in Southern California and stop foreclosure.

    Even for people who don’t have a home, a Chapter 13 bankruptcy can provide a light at the end of the tunnel.  It can provide a way to pay what you can afford, and in return, stop lawsuits, wage garnishments, collection headaches and yes, even foreclosures. And then, yes, you can be debt-free in three or five years.  That time will tick off the calendar either way… why not be out of debt in that span?

    So, just because you’re a payment or three behind on that car or home and don’t think you can stop the house foreclosure, don’t lose faith.  There is a way to get some space and time to catch your breath.  You can be out of debt and most importantly, save your home.  Sometimes, bad things happen to good people.  We don’t intend for things to work out the way they do.  But when “life happens” and there is an unanticipated debt problem, when you’re ready to solve it then a Chapter 13 bankruptcy can be the solution to your problem.

    CONTACT US FOR A CONSULT NOW

    Hale Andrew Antico (aka Attorney Antico) is an attorney who specializes in consumer finance.