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Local Governments Responding to Increased Default Risk

Across the country, state and local governments are placing moratoriums on foreclosures and evictions as more and more homeowners are impacted by COVID-19. In some of the hardest-hit states, including California and New York, officials are placing restrictions on landlords issuing evictions.

Los Angeles Mayor Eric Garcetti issued an executive order that no landlord can evict a residential tenant in the City of Los Angeles during the local emergency period. Tenants will have up to six months following the expiration of the local emergency period to repay any back due rent. The LA City Council is considering expanding the moratorium to 12 months.

Meanwhile, in Oakland County, Michigan, County Treasurer Andy Meisner announced that the county will not be issuing residential or business foreclosure notices through the end of 2020. According to Meisner, the county will not be foreclosing on homes or businesses that do not make the March 31 tax deadline.

Recently, Nevada Governor Steve Sisolak announced an emergency directive putting a moratorium on all evictions and foreclosures in his state. The directive will be in effect for 90 days and applies to both residential and commercial tenants.

"This is not the time to put people out on the streets," Sisolak said. "This is also not the time to evict small business owners who have been hit by the economic fallout of this pandemic."

On a national level, Wells Fargo & Company has announced that it has suspended residential property foreclosure sales, evictions and involuntary auto repossessions, as part of additional comprehensive steps to help customers, communities and employees grappling with the impact of COVID-19. Additionally, the Wells Fargo Foundation will increase its charitable donations to $175 million to help address food, shelter, small business and housing stability, as well as to provide help to public health organizations.

About Author: Seth Welborn

Seth Welborn is a Reporter for DS News and MReport. A graduate of Harding University, he has covered numerous topics across the real estate and default servicing industries. Additionally, he has written B2B marketing copy for Dallas-based companies such as AT&T. An East Texas Native, he also works part-time as a photographer.

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