Los Angeles Cancels Rent and Will Create Foreclosures. Govt Will Buy Up the Houses.
Rental units will become more scarce. If renters fail to pay landlords, landlords may not be able to cover their mortgages and their homes will go into foreclosure. The video creator said that this model will spread across the country.
California has a new law, SB 1079, that purports to level the playing field when it comes to bidding on properties; however, it is really a way for the government to get a piece of the action. SB 1079 states that if an investor wins a foreclosed home at an auction, other people, non-profit organizations and the government get 45 days to submit competing offers. The foreclosure crisis is going to lead to more opportunities for government intervention.