A relatively long or relatively short problem.
At the beginning of the pandemic, many businesses that rent their premises obtained facilities from the owner to pay their monthly payments.
Now those owners are demanding their full monthly payment and are threatening to evict the tenants. They are owners, but they also have commitments and debts to pay.
There are two alternatives: either the business closes and the owner of the premises has no income for a relatively long time or simply renegotiates a partial payment of the rent for a relatively short time. We say short because businesses that have rented premises can recover in about 6 months. On the contrary, the owner of the premises can go several years without finding a new tenant.
If it is a rented residence, it is more difficult to make concessions and the pressure from the owner will be intense, although you will lose some months of rent.
Mortgages and personal (secured) loans is another problem. Thousands of families obtain their home or business premises through mortgage loans that they cannot pay now. They also acquire personal property such as vehicles, refrigerators, washing machines, etc.
The banks have given facilities to these debtors, charging only very low interest for a few months until the situation improves. But those months are running out and when the principal payment starts, there will be many people who could lose their property or the good acquired.
In such a case, banks would fill up with properties, which will be difficult for them to resell for a relatively long time, even at an attractive price.
What to do? First, we must remember that the money in the banks belongs to the depositors, something sacred. Second, that the facilities granted once they end can be extended to certain clients who clearly show their possibilities of financial recovery in a relatively short time.
When the damage to the family economy is relatively long and the loan is unpayable, there is no other way than to get rid of the property or other collateral in time and avoid legal expenses and evictions.
One option is for you to rent the property to pay your mortgage and move in with a relative. This until your economic situation improves.
Definitely, the facilities granted by the banking system have created a bridge between the crisis and the recovery, which have prevented a further collapse of the economy.
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