Foreclosure Moratoria COVID
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Revision as of 16:09, 4 March 2021 by Alanfields (talk | contribs)
From Dale Whitman, DIRT Blog 2/17/21
New York State Moratoria and eviction protection
- Governor’s Executive Order 202 (March 7, 2020), extended most recently by Executive Order 202.92, expiring Feb. 26, 2021, prohibits initiating a proceeding or enforcement of
- (a) an eviction of any commercial tenant for nonpayment of rent or
- (b) a foreclosure of any commercial mortgage for nonpayment of the mortgage.
- Senate Bill S471A, the “COVID-19 Emergency Protect Our Small Businesses Act of 2021” (passed by Senate and Assembly, but not yet signed by Governor). Effective until May 2, 2021.
- Provides eviction protection for small businesses of under 50 employees that demonstrate a financial hardship; and
- Foreclosure protections for small businesses who have 10 or less units
New Jersey court restrictions on evictions and foreclosures
- In March 2020 the New Jersey Courts:
- postponed all commercial landlord/tenant trials.
- barred the issuance of Writs of Possession arising out of Final Judgments in Foreclosure in commercial foreclosures.
- Effective in Feb. 2021, these orders were relaxed as follows:
- Tenant evictions may proceed upon proof of “emergent circumstances” -- something beyond nonpayment of rent, such as proof by the landlord that:
- The tenant has closed its business or abandoned the property; or
- A risk to the landlord of mortgage foreclosure or a property tax lien
- Writs of Possession can now be issued in commercial mortgage foreclosure cases.
Oregon Foreclosure Moratorium
- Oregon House Bill 4204, effective retroactively to March 8, 2020:
- Prohibits all foreclosure judgments (they are void)
- Missed payments are deferred until loan maturity
- No late fees, default interest, inspection charges, or cash management processes may be imposed
- No default declarations based on financial covenants (e.g., net worth req’mts)
- Governor’s Executive Order 20-67 (issued Dec. 17, 2020) extends this program without any deadline.
- But the Governor’s authority to make this extension is debatable and being litigated.
- If the extension is invalid, the moratorium apparently expired Dec. 31, 2020.
Local government eviction and foreclosure protections
- The City of Seattle has a “small business tenant” and nonprofit organization eviction moratorium in effect.
- Currently extended to March 31, 2021
- Texas Harris County (Houston) and Travis County (Austin) are permitting no foreclosures (both residential and commercial) on a month-to-month basis.
- Bexar County (San Antonio) has an open-ended prohibition on foreclosures.
- Cook County, Illinois (Chicago) has a judicial order prohibiting foreclosure judgments and evictions pursuant to foreclosure, effective until further notice.
