News Brief: Foreclosure During the Pandemic
Right now, we’re in one of the worst economies in U.S. history, caused by a pandemic that no one could have predicted. Millions of innocent people have lost their jobs. Millions more are going to lose their homes. This news brief outlines how moratoriums have impacted homeowners, and what to do about foreclosure during the pandemic.
New Orleans City Business Studies Mortgage Delinquency:
“The Coronavirus Aid, Relief and Economic Security (CARES) Act temporarily suspended home foreclosures for federally backed loans until the end of this year. As a result of the CARES protections and loan forbearance, the total U.S. mortgage debt is at a 15-year low, according to the analysis. But that could quickly change when foreclosures resume in 2021, the study based on New York Federal Reserve data said.”
There’s a Reason:
“One of these is not like the others: Homeowners are still struggling to meet their monthly mortgage bills, the coronavirus is on the rise, the economy is scuffling and foreclosures filings are way down…. But homeowners are not suddenly more financially secure.”
Homeowners Still in Danger of Foreclosure:
“‘There’s chaos in how foreclosures are supposed to be handled right now,’ [Scott] Webber told Maryland Matters [about his own house being sold through foreclosure, despite the federal moratorium]…. He said borrowers should contact their lenders and loan services as soon as possible to ask for a forbearance if they’ve taken a financial hit due to the coronavirus pandemic. ‘It can’t wait,’ Webber said. ‘This housing crisis is not only forthcoming, it’s here now.’”
Forbearance and Foreclosure:
“A homeowner in Littleton [Colorado] says because he deferred his mortgage payments through the CARES Act forbearance program for those impacted by COVID-19. As soon as he was able to begin paying again, he was told he must pay about $23,000 in past mortgage payments within 60 days.”
Foreclosure During the Pandemic FAQ:
Can my lender foreclose on me during the COVID crisis?
Your lender can still foreclose on you during the pandemic!
If the suit has not been filed against you yet, your best chance at saving thousands of dollars is to work with an attorney before you are foreclosed upon.
I missed or avoided the sheriff who is trying to serve papers. Is my home safe?
No! In fact, if the sheriff has followed procedure and you are not responding, an attorney could even be appointed to take action without you knowing it. The best way to keep your home safe is to get your own attorney!
Can I get help to afford my loan?
Mortgage companies have no reason to negotiate with you by yourself. Legally they have the upper hand.
However, attorneys know which laws they can use to make lenders cooperate.
I have been served with court foreclosure papers. What do I need to do?
Get a lawyer to respond to any papers as soon as possible!
Each stage of the court process has its own timeline and requirements. Attorneys know what to and when to do it.
Are sheriffs auctioning homes during the pandemic?
Yes! On top of that, they do not have to notify you of any date changes.
Foreclosure auctions can happen online. If you are worried about losing your house, you must stay on top of your sale date.
What court papers could I be served with and what do they mean?
Notice of Seizure and Sale
Notice to Answer Suit
Notice of Judgement
These papers mean the court is going to take your house.
Call The Law Office of Christopher Szeto (504) 226-2292 ASAP to help!
How can foreclosure be stopped?
Attorneys can provide you with your best options. For example: USC Title 11 Section 362 provides for an automatic stay that protects you from being foreclosed for 90 days. Then a form Schedule D could be filed to adjust interest and set up a payment plan, including back mortgage. The monthly payment could be changed after that for the next 3 to 5 years.
Sign up to receive foreclosure updates at https://learnmore.nolaforeclosure.com/
Additional Information:
“11 U.S. Code § 362- Automatic Stay”, Legal Information Institute, https://www.law.cornell.edu/uscode/text/11/362
“About Schedule D (Form 1040 or 1040-SR), Capital Gains and Losses”, IRS, https://www.irs.gov/forms-pubs/about-schedule-d-form-1040
“Advocates: Homeowner’s Still in Danger of Foreclosure Despite State, Federal Orders”, Maryland Matters, https://www.marylandmatters.org/2020/12/02/advocates-homeowners-still-in-danger-of-foreclosure-despite-state-federal-orders/
“Automatic Home Stay”, The Law Office of Christopher Szeto, https://stay.nolaforeclosure.com/
“Eviction, Foreclosure Bans Expire in One Month”, WDSU News, https://www.wdsu.com/article/eviction-foreclosure-bans-expire-in-one-month/34841168
“Foreclosure FAQ”, The Law Office of Christopher Szeto, https://www.goszeto.com/foreclosure-faq
“Foreclosure Filings are Way Down. There’s a Reason,” The Real Deal, https://therealdeal.com/national/2020/12/10/foreclosure-filings-are-way-down-theres-a-reason/
“Foreclosure Prevention FAQ”, Southeast Louisiana Legal Services, https://slls.org/covid_foreclosure_prevention/
“In My Experience, Forbearance Equals Foreclosure: Littleton Man with a Message for Homeowners”, The Denver Channel, https://www.thedenverchannel.com/news/local-news/in-my-experience-forbearance-equals-foreclosure-littleton-man-with-a-message-for-homeowners
“Study: Louisiana’s Mortgage Delinquency Rate is 7th Highest”, New Orleans City Business, https://neworleanscitybusiness.com/blog/2020/12/02/study-louisianas-mortgage-delinquency-rate-is-7th-highest/
“Worried About Losing Your House?”, The Law Office of Christopher Szeto, https://learnmore.nolaforeclosure.com/
