{"id":2983,"date":"2020-08-03T16:18:59","date_gmt":"2020-08-03T20:18:59","guid":{"rendered":"https:\/\/www.harringtonlawassociates.com\/?p=2983"},"modified":"2020-08-04T16:14:34","modified_gmt":"2020-08-04T20:14:34","slug":"real-estate-florida-moratorium-on-foreclosures-evictions","status":"publish","type":"post","link":"https:\/\/myhlaw.com\/es\/real-estate-florida-moratorium-on-foreclosures-evictions\/","title":{"rendered":"Real Estate: Florida Moratorium on Foreclosures & Evictions"},"content":{"rendered":"

On July 29, 2020, Governor DeSantis signed Executive Order 20-180<\/a>, extending the moratorium on foreclosures and evictions until September 1, 2020.\u00a0 However, this latest executive order carves out some exceptions of which you should be aware.<\/h4>\n

Foreclosures<\/h2>\n
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  1. Single-Family Mortgagor<\/strong>.\u00a0 First and foremost, the order only protects so-called \u00absingle-family mortgagors.\u00bb\u00a0 The Governor’s choice of verbiage leaves a bit open to interpretation, but it is likely the following types of mortgages are not<\/em> subject to the moratorium:\n
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    • Commercial loans<\/li>\n
    • Residential loans on multi-family properties<\/li>\n<\/ul>\n<\/li>\n
    • \u00a0Affected by Covid-19<\/strong>.\u00a0 It might not be too difficult for residential borrowers to show they have been affected by the Pandemic, but there are some who might not qualify.\u00a0 For example, our firm represents some online businesses that have done just fine over the past months.\u00a0 Some may even have benefited from the shut-down.\u00a0 So, while the order is not clear, it is certainly possible that the onus will be on the borrower to prove a Covid-19-related hardship in order to avoid foreclosure.<\/li>\n
    • Other Grounds for Foreclosure<\/strong>.\u00a0 The order specifically states the Order will not prevent foreclosure on grounds other than non-payment of the mortgage.\u00a0 At this point, one would imagine some lenders, at least, are getting pretty desperate for their mortgage income.\u00a0 One strategy you might see is lenders getting creative about the grounds for foreclosure.\u00a0 Is the failure to provide funds for insurance and tax escrows considered non-payment of the mortgage?\u00a0 Maybe.\u00a0 What about other provisions in the mortgage that might have been breached?<\/li>\n
    • Final Action<\/strong>.\u00a0 Also, note the Governor’s Order only prevents the \u00abfinal action\u00bb concluding a foreclosure action.\u00a0 So, that means lenders can go ahead and initiate their foreclosures anytime.\u00a0 They might even be able to get final judgments in place.\u00a0 While unclear, the \u00abfinal action\u00bb referenced in Executive Order 20-180 probably means holding the foreclosure auction of the property.\u00a0 Or, maybe, \u00abfinal action\u00bb means the property can be auctioned, but the owners cannot be removed under a Writ of Possession.\u00a0 In any event, you get the point.\u00a0 There is much the lender can do during the pendency of the Order.\u00a0 And, some aggressive lenders may well do so.<\/li>\n
    • Non-Forgiveness<\/strong>.\u00a0 As with the previous Orders, this Executive Order 20-180 does not make the past due mortgage payments go away.\u00a0 The past due balance continues to accumulate whether or not the lender is currently prevented from actually taking possession of the property.\u00a0 That is why many experts believe there will be a wave of foreclosures as soon as the Pandemic Relief measures are lifted.\u00a0 By that time, some borrowers, at least, will find themselves several months in arrears.\u00a0 If they were unable to make the mortgage payments on a monthly basis, they certainly will not be able to make a lump-sum payment for several months of past-due payments.<\/li>\n<\/ol>\n