Question

Laws for Accountants:

The White House has proposed that real estate foreclosures not occur for a period of time due to the fallout from the covid-19 virus. The Governor of CA has signed an order directing this in Ca. How does that change the value of the real estate, the promissory note that represents the debt for the mortgage and the position of the lender?

Answer 1

On the outbreak of COVID-19 or the spread of CORONA VIRUS, the whole economy has come down to rest. All the sectors including real estate is at the recession and are facing huge fall downs in the market. Even when the petition had been signed and duly submitted it has great impact on real estate, the promissory note and the position of lenders. Cash holding position for all the people are getting into trouble. The resource are as usual limited and the price for necessary goods are increasing as well. There is very less scope of further sale of real estate or promissory note in the market as majority portion of the society it's not able to repay back their loans.