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Foreclosure And Eviction In Covid times: A major challenge

Foreclosure and Eviction has been a notable problem today because of the pandemic.

After all, as the coronavirus pandemic continues to put tens of thousands of Americans out of work, legal aid groups, housing advocates, and even some justices of the peace are stepping up preparations to increase deportations.

By the end of this year, the CDC eviction moratorium should protect tenants in all 50 states.

The CDC says leaving tenants affected by Covid in their apartments will reduce the possibility of the virus spreading, as displaced persons are forced to live with family or friends or provide shelter for the homeless.

But each county is taking its own measure.

For example, although many laggards in Texas cannot keep up with the growth of the virus and the unemployment rate, the judge who initiated the eviction case said that state law gave them few opportunities for mercy.

Then, the Supreme Court of Texas suspended deportation proceedings in March, but the suspension period expired.

Some counties still implement suspension orders.

However, as these cases diminished, in the process of reopening the courts, more and more cases of relocation began to take shape.

Federal protections against Foreclosure and Eviction

Foreclosure And Eviction

On September 1, 2020, the Centers for Disease Control and Prevention (CDC) issued an order from the agency called “Temporary Deportation Order of Residents” to avoid the dissemination of COVID-19 (the order).

The request came into force on 4 September 2020 and was extended on 27 December 2021.

The order prohibits landlords residing throughout the country from expelling certain tenants until January 31, 2021.

This command protects the tenant, provided that:

  • Do your best to obtain government housing assistance Unable to pay full rent due to lost revenue
  • They are doing their best to pay part of the rent in a timely manner and
  • If they are evicted, they will be homeless or have to move to a residential environment.

In addition to the above requirements, one of the following financial standards should also be used. To qualify for protection, tenants must:

  • It is estimated that by 2020, personal income will not exceed USD 99,000 (joint tax return) or USD 198,000 (joint tax return)
  • They do not have to report any revenue to the IRS in 2019, or Economic Impact Payment received
  • Tenants must complete a declaration, under penalty of perjury, that they meet the criteria listed in the Application.

Anyone who violates the order may be subject to criminal penalties, including fines and imprisonment.

Even with this order, states can still prohibit evictions and implement other protections for tenants that provide more protection than the order.

This means that tenants who do not meet the protection standards of the federal prohibition can still be protected against eviction under the protection of any applicable state or local order.

Note that each state court handles CDC eviction orders differently.

Another point regarding federal legislation

The FHA extended its prohibition on expulsion of assets guaranteed by family mortgages until February 28, 2021.

The Consumer Financial Protection Bureau is still explaining the federal eviction order in detail.

History of Foreclosure and Eviction

One day before Thanksgiving, the merchant Steve Cowley was in Pensacola, Florida, when someone started knocking on the door.

It was the county sheriff’s deportation notice. Cowley, 36, has nowhere to go.

Unemployed due to Covid-19 and rent arrears, he did his best to survive with a weekly unemployment check for $275.

He said that his car was recycled, so he can’t live in it, which is a common safe haven for expelled tenants.

The sheriff’s visit surprised Cowley because he provided the county court with the documents required by the federal eviction order issued by the Centers for Disease Control and Prevention in September.

The ban is intended to allow Covid affected tenants to remain in their homes even if they cannot afford to pay the landlord’s fees.

In fact, the documents show that Patricia Kinsey was the only judge in Escambia County, where Pensacola was located, hearing the eviction case and ordered Cowley to leave her home.

Kinsey, a lawyer representing the landlord of Cowley, a large Canadian company with 19,000 rental units in North America, argued that the CDC order was unconstitutional.

With the consent of the landlord’s attorney, Kinsey determined that the suspension of the CDC was an “illegal acquisition” of the landlord’s private property rental income by the U.S. government.

The consequences

Despite the temporary ban of the CDC, the United States does not have a federal eviction policy and each state has different rules for owners and tenants.

For example, in Ohio, if the tenant’s rent is delayed by only one day, the landlord may evict the tenant.

Some states have implemented their own dump bars. However, at least seven states – Arkansas, Georgia, Missouri, Ohio, Oklahoma, South Dakota and Wyoming – have never implemented such protections.

All of them are controlled by Republicans and many have resisted many Covid-19 measures. Owners of several states filed lawsuits asking the CDC to stay the execution.

One of them was taken to the federal court in northern Ohio, alleging that deportation was prohibited. It represents a broad takeover of administrative agencies that it does not possess.

 The American Medical Association and the American Academy of Pediatrics have taken action asking the U.S. Centers for Disease Control and Prevention to order and oppose all.

The judge hearing the case should render a verdict soon. Housing advocates say that in some places a wave of homeless people has begun to form.

Benjamin Horne, defense director of the Legal Aid Association of Columbus, Ohio, reported that the record of evictions in his area increased significantly last week – more than 500 cases, compared to the previous record of 300 cases.

Difficulties in Florida

The national moratorium ordered by the Centers for Disease Control should protect families who have lost their jobs due to the pandemic.

After the announcement, Governor Ron DeSantis allowed the moratorium on deportation from Florida to expire at the end of September, saying it would avoid confusion with the effective order.

But court records show that the federal order failed to protect Florida tenants – including hundreds of Tampa Bay families – from losing their homes.

In October, 430 warrants were issued in Pinellas County, which was the last legal stage in the eviction operation.

During this period, the tenant was removed by the sheriff while Hillsborough County ordered over 280 warrants.

In the event of loss of redemption rights, these totals contain a small number of warrants, but the vast majority are eviction orders.

Conclusion about Foreclosure And Eviction

In addition to the increased risk of spreading the Covid-19 virus due to evictions, the costs associated with these cases will also be borne by taxpayers.

According to a survey by the National Low-Income Housing Alliance and the University of Arizona’s Judicial Innovation Program, if a quarter of the deportees live in homeless shelters, taxpayers will face $130 billion in medical expenses.

Emergency services, social assistance services, housing and juvenile delinquency.

Currently, the lack of federal government policies and deportation methods during the pandemic means that states are in a leadership position.

Paul Nollett, dean of the Political Science Department at Marquette University in Milwaukee, said this resulted in “many differences and differences in responses between states.

Except for the temporary prohibition of the CDC, the United States does not have a federal eviction policy and each state has different rules for owners and tenants.

For example, in Ohio, if the tenant’s rent is delayed by only one day, the landlord may evict the tenant.

Some states have implemented their own dump bars.

However, at least seven states – Arkansas, Georgia, Missouri, Ohio, Oklahoma, South Dakota and Wyoming – have never implemented such protections.

All of them are controlled by Republicans and many have resisted many Covid-19 measures.

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