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IMPORTANT COVID-19 BANKRUPTCY UPDATE

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Coral Springs Bankruptcy Attorney / Blog / Foreclosure Defense / Avoiding Foreclosure During the COVID-19 Crisis

Avoiding Foreclosure During the COVID-19 Crisis

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Millions of people have lost their jobs due to the coronavirus. While stimulus checks have gone out and many states are taking measures to increase unemployment benefits, many people are still unable to pay their bills and basic necessities. For many, their home is at risk. On top of losing their jobs, they may be worried about losing their homes as well.

For those who rent, many landlords are sympathetic, allowing tenants to delay their rent, pay reduced rent or even forego it altogether for a month or two. But what if you have a home? Are banks being as nice to homeowners?

What are your rights during this time? Do you have any foreclosure defense? Is filing a foreclosure essential business right now?  Should you be concerned about not being able to shelter in place because you have no shelter?

The good news is that there are laws in place that are protecting homeowners. In addition, some banks are taking relief measures to help those in financial distress. Many are suspending foreclosures for certain periods of time. Some are allowing homeowners to defer payments, waive late fees and reduce interest rates.

Also, no foreclosure actions can start right away. On March 22, 2020, Chief Administrative Judge of the Courts Judge Marks issued an order stating that no papers shall be accepted for filing by a court for non-essential matters. Foreclosures are not deemed essential at this time. This does not simply mean you should stop making payments on your home, however. You should contact your bank and ask about the available options.

Banks That Are Suspending Foreclosures

More than a dozen banks are currently suspending foreclosure activity. Regions Bank is delaying foreclosures for 30 days. Ally Bank is suspending foreclosure until July 30. Associated Bank, Fifth Third Bank and Citizens Bank are suspending foreclosures for 60 days. For Bank of American and Webster Bank, that timeline is 90 days. Foreclosure-related activities have been suspended at Wells Fargo, Key Bank and First National Bank of Omaha. At Flagstar Bank and Huntington National Bank, all foreclosure activity is suspended through the end of May 2020.

Why is there so much inconsistency? Why aren’t all lenders taking action to help their clients during this time. If a mortgage is not federally backed, there are no guarantees when it comes to forbearance. If you have a mortgage through the Veterans Administration, FHA, Fannie Mae or Freddie Mac, you have the best chance of hanging onto your home.

Contact a Coral Springs Bankruptcy Attorney

The coronavirus pandemic has caused financial hardships for millions of people. Many cannot afford to make rent or mortgage payments, putting their shelter at risk. Some cannot even afford food and other necessities.

Losing your home does not have to be an option. Contact a Coral Springs foreclosure defense attorney at The Law Offices of Barry S. Mittelberg, P.A. We can help you find options that can aid your finances and alleviate stress. Schedule a free consultation today by calling our office at (954) 752-1213.

Resources:

forbes.com/sites/andrewdepietro/2020/03/31/banks-suspending-foreclosures-covid-19/#2a0ec90a2220

brownstoner.com/real-estate-market/coronavirus-covid-19-homeowner-mortgage-foreclosure-unemployment-fraud-legal-aid-society-faq/

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