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Evictions impact credit scores & future housing options explains Springfield credit counselor

Published: Aug. 3, 2021 at 9:04 PM CDT
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SPRINGFIELD, Mo. (KY3) - Days after the federal eviction moratorium came to an end, the federal government has issued a new moratorium on evictions.

The new moratorium would last until October 3, preventing more renters from being kicked out. It would temporarily halt evictions in counties with “high levels” of virus transmission.

Consumer Credit Counseling Services credit counselor Mark Stallings says getting evicted will have a long-term effect on you financially.

“It could cost you a lot of your time, a lot of money and a lot of effort to recover from this and it’s not going to be a fast recovery,” Stallings says.

Stallings says it also impacts your ability to find housing again in the future.

“It’s going to make it more difficult for landlords to be able to rent to you,” Stallings says. “They will rent to you but it could cost you extra money. They could charge you a first and last months rent, a larger deposit.”

Stallings says an eviction will stay on your record for seven years, which lowers your credit score. Stallings says your credit score impacts nearly all aspects of your life.

“It’s used to determine how much you’re paying from car insurance, homeowners insurance, renters insurance, how much a loan is going to cost you, whether or not you can get a loan,” Stallings says.

The eviction moratorium stopped landlords from kicking renters out for not being able to pay rent during the pandemic. While finalized plans are up in the air for new federal guidelines on another moratorium, Stallings is expecting an increase in evictions. However, Stallings says it’s important to take steps to prevent renters from getting that far and the first one is talking to your landlord.

“It’s important that you keep the line of communication open so that they know you’re not just trying to burn them out of their money,” Stallings says. “They’re struggling as well at this time of year.”

The Consumer Credit Counseling Service is offering to help renters with their application to the state assistance for housing relief program. That program offers up to 12 months of past unpaid rent and three months of future rent.

“Giving people an opportunity to recover from a very bad situation that has hit not only our country but it has hit the entire world,” Stallings says.

Stallings says there is an income requirement to be eligible for the program. Your household’s estimated income must be at or below 80% of the area median income (AMI). Stallings says in Greene County, the AMI for a single person household is $31,600.

Stallings says anyone with questions should call the office to get on the waiting list to receive help with the SAFHR application. That number is 417-889-7474.

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