Foreclosure Defense, Foreclosures

Foreclosure Moratorium Expires, Leaving 1.45 Million Homeowners in Serious Delinquency

Even though mortgage delinquency rates have fallen by five percent since May, a record 1.45 million homeowners are seriously delinquent on their mortgages, according to figures from Black Knight.

The number of delinquencies has improved for 12 of the last 14 months, with only two increases in delinquencies reported. However, delinquency volumes have continued to increase to the point of pre-pandemic levels. According to Black Knight, around 1.45 million borrowers are at least 90 days delinquent on their mortgages as of the end of July. This stage of the process is known as a late-stage delinquency, meaning the borrower is not in foreclosure but is dangerously close. Black Knight reported that this figure was one million more than at the beginning of the COVID-19 pandemic. Many of these borrowers are still working with their lenders on forbearance plans.

COVID-19, Foreclosure Defense, Foreclosures

Supreme Court Ends Eviction Moratorium

The U.S. Supreme Court ended the pandemic-related federal moratorium on residential evictions imposed by President Biden’s administration. This eight-page decision effectively ends a debate that has divided party lines for months now during the COVID-19 pandemic. The ruling came down in a 6-3 decision, the court similarly divided along party and ideological lines.

The eviction moratorium was declared by Congress at the start of the pandemic. However, Congress’s moratorium expired in July 2020. The CDC then extended it by issuing a series of moratoriums under a 1944 law. The moratorium has consistently been extended, giving tenants and homeowners an opportunity to remain in their homes.

Landlords have consistently fought the moratorium, arguing that the longer it has been extended, the more they have suffered financially without any legal recourse.

The majority opinion stated that they believe the Centers for Disease Control and Prevention (CDC) exceeded their authority. They claim the CDC has relied on a statute that is decades-old that authorizes the CDC to implement emergency measures, such as fumigation and pest extermination, not a nationwide months-long moratorium on evictions.

Consumer Bankruptcy

Bankruptcy Filings Fall to Levels Not Seen Since 1985

Bankruptcy filings have fallen to levels not seen since the mid-1980’s. The low number of filings are credited to the government aid and stimulus checks issued since the COVID-19 pandemic.

According to statistics from the Administrative Office of the U.S. Courts, 462,309 individuals and companies filed for bankruptcy in the fiscal year ending June 30, 2021, which is a 32 percent decrease from the previous year. The office also noted that this figure was the lowest one reported for a 12-month period since 1985.

Personal bankruptcy filings decreased 33 percent to approximately 444,000 over the course of a year. Business filings similarly declined, although by a lower percentage. Business bankruptcy cases dropped by 17 percent to approximately 22,500 filings.

Foreclosure Defense, Foreclosures

Wave of Foreclosures and Evictions Expected as Federal Moratoriums Expire

The federal moratorium on foreclosures and evictions officially expired over the weekend, leaving the legal system braced for an impending wave of filings. To offset the wave of foreclosure and eviction filings which will no doubt be on the way, lawyers and courts are finding creative solutions to the problem.  

The eviction moratorium was put into place as a way to help tenants and homeowners who were left with no income due to the coronavirus causing widespread shutdowns across the country.

President Biden has pushed on Congress to approve a one-month extension for all residential evictions. However, at this time, no federal congressional action has been taken to extend the moratorium. 

COVID-19, Debt Relief, Foreclosures

Biden Extends Ban on Evictions and Foreclosures through March

Shortly after being sworn in as the nation’s 46th president, Joe Biden signed several executive orders. One of these signed orders included extending the ban on evictions and foreclosures for individuals affected by the COVID-19 crisis.

This new order extends the Centers for Disease Control and Prevention’s (CDC) moratorium that was set to expire on January 31, 2021. The CDC’s order first went into effect in September 2020. This new executive order extends the ban for at least an additional two months past the expiration date.

COVID-19, Foreclosures, Kingcade Garcia McMaken

Evictions Pile Up as DeSantis’ Moratorium Set to Expire in Florida

Both landlords and tenants are waiting with bated breath to see what will happen when it comes to the current moratorium on evictions in Florida. With the hold on evictions set to expire at the end of this month, no official statement has come from the Florida Governor’s office regarding whether Gov. Ron DeSantis intends to extend the moratorium through the end of September. In the meantime, the number of eviction cases are piling up, waiting to proceed once the freeze on evictions is lifted.

The moratorium on evictions related to the coronavirus (COVID-19) pandemic originally took effect on April 2, during the height of the epidemic. As the hold on evictions now enters its fifth month, landlords are demanding the stay be lifted, allowing them to proceed with business, while tenants are requesting the hold on evictions be extended, giving them additional breathing room to get back on their feet during this difficult time. However, many landlords argue that the individuals taking use of this moratorium do not actually need the assistance but are simply taking advantage of the statewide ban.