So it looks like this coronavirus thing is here to stay huh? Well, if you are a tenant facing eviction or a homeowner facing foreclosure, there’s good news for you! State, Local and Federal governments are doing everything they can to prevent you from being evicted or foreclosed on.
Back in March, the California government issued an executive order stopping foreclosures and evictions through May. It has been extended numerous times and now, it looks like people have at least until the end of February of 2021. NPR did a nice piece on California’s moratoriums.
For renters, there are some interesting caveats. If they can show that Covid has impacted them financially, they are only required to pay 25% of their rent. Whenever the moratorium is lifted, they will owe the rest but will not be evicted for it. It will simply become a judgment for the landlord that they can collect from by wage garnishment, etc.
For homeowners, most restrictions against foreclosures only apply to federally backed mortgages including Fannie Mae and Freddie Mac. In 2007, that was 40% of the market.
Though they will likely help a lot of people who may get back on their feet sooner than others, these moratoriums seem to simply “kick the can down the road.” Nearly 16 million people are currently using some sort of government funding for hardship and it is likely most of them will not recover quickly when these programs go away. The stimulus payments of $600.00 to $2,000.00 every 6 months are not likely to be anyone’s saving grace. At some point, tenants and homeowners are going to need to address these delinquencies.
For tenants, the law in California is certainly on your side. That is not stopping landlords though. They seem to ignore these rules and hope to pressure people out.
For homeowners, California law also offers various protections including the Homeowner Bill of Rights.
We are here to help both. If you find yourself in trouble, call us. We offer an initial intake free of charge and have many options available for retainers. In some cases, there is no fee unless you win.