The foreclosure and eviction moratorium was to protect individuals who were suffering because of the COVID-19 pandemic. People weren’t making money, businesses were failing, people weren’t going out, and our government decided that they needed to step in to protect the people of this country from being homeless. It was extended many times throughout the last year-and-a-half, it did end in June and then extended again to the end of July.
The moratorium gave forbearances, allowing three to six months of protection from foreclosure. They didn’t have to necessarily pay their mortgage due to financial hardship. For some, this was a great benefit, but for others, it did not provide a true solution. Some mortgage companies are saying at the end of your forbearance, you must get current; meaning, if they gave you six months, where you didn’t have to pay a mortgage payment, you then must come up with a six-month mortgage payment to not be in default.
Some of these mortgage companies are giving people realistic options to catch up, they can:
- modify the mortgage,
- cure it over a certain number of months,
- come up with a payment right now, or
- just take those missed months and extend the life of the mortgage.
These mortgage companies have come up with reasonable solutions, but not all companies are.
The moratorium was freezing every foreclosure case and all the eviction cases. With so many people missing mortgage and rental payments, it was hurting lenders and landlords across the country. If you are a landlord with your own mortgage and your tenants aren’t paying, then you also are in default. The moratorium wasn’t the same for commercial property as it was for personal residence.
Here in Illinois, there are executive orders 2020-72 and 2020-74 that relate to evictions and have been used in foreclosure cases. These orders essentially say that if the tenant files a declaration form and they believe that they are protected people under COVID-19, that the eviction cannot happen yet. Not a forever freeze but it is a way to give people a little bit more time. In the declaration, the homeowner must state that they:
- expect to earn no more than $90,000 in the next year ($198,000 if filing jointly),
- have a COVID-19 related hardship,
- made their best effort to make payments,
- will be homeless if evicted, and
- understand this is a temporary halt to your eviction.
If a person can honestly sign this declaration and get it to their landlord or mortgage company, then this order will allow for a temporary freeze.
Are There Any Movements To Re-Enact The Foreclosure Or Eviction Moratorium?
In April, the CDC had plans to extend this moratorium into 2022, but that was overturned by the Supreme Court. To put it simply, the court ruled the CDC did not have the authority to do some of the things they were trying to do. At this point, we are basically done with those moratoriums. There was nothing on the federal side that was extended past September 30th. The state of Illinois order expired on October 16th.
For more information on the Expiry of Foreclosure/Eviction Moratorium, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (847) 440-5998 today.