Call for a Free Consultation 602-910-7525

Evictions

Eviction and Foreclosure, Does Shelter in Place Orders Stop this?

While America is practicing social distancing with many cities enacting mandatory shelter in place orders to slow the spread of novel Coronavirus or COVID-19, there are many who are facing the reality of not having a roof over their heads. Arizona foreclosures and evictions threaten thousands of families with homelessness amidst growing unemployment and underemployment. Although many believe the recent emergency measures taken by President Trump will stop these actions temporarily, it is not the case for all. There is also the concern of what happens once this state of emergency blows over.

Breaking down what exactly the President did may not bring comfort for many at risk for losing housing. A moratorium, or plainly put a delay or suspension of law, was issued for all FHA insured Single Family mortgages for at least 60-days. This means if a borrower was in the process of foreclosure, at risk, or comes into the risk of foreclosure or eviction and the home loan is an FHA backed loan, they will now have an additional 60-days, minimum, to stay in the home. Additionally, deadlines associated with foreclosure or eviction proceedings are extended for an additional 60-days, again only for FHA loans. These protections do not apply to any other type of loans, leaving many at risk for losing housing.

Recently, the Arizona Supreme Court granted counties the ability to decide for themselves, if they wish to suspend foreclosure and eviction actions or reschedule hearings for later dates to allow more time to remedy the situations for non-FHA cases. Many of the counties have not decided if the entire county will allow the delays; instead, they have left it up to each Justice of the Peace to decide (Justice of the peace are elected officials who serve for a four-year term. Each county has at least one Justice of the Peace).

According to reports from Arizona Central Maricopa County, the largest populated county in Arizona, is reporting 11 of the Justices have made no comment, 8 have decided to allow the delays and 7 have claimed they will continue business as usual, but will review each situation on a case by case basis. San Marcos Justice, the honorable Jay Tibshraeny has commented, “Moratoriums on evictions for only two weeks won't help renters get rid of debt they owe landlords,” which is part of the larger picture. Once the delay or suspensions are lifted, families are still in a position to lose housing. There are currently no additional or new provisions to help with avoiding foreclosure or eviction after the moratorium is lifted. However, borrowers or renters should reach out to the lender to try to work out a solution or contact local housing assistance programs to seek help in obtaining new housing.

There are options when families get behind on rent or mortgage payments. The best course of action is to act early. Seek resources to help with financial problems or HOA issues. Select Law, PLLC can help direct those struggling to valuable resources, give advice on the best approach, or provide legal representation.

Lastly, a Chapter 13 Bankruptcy could also be an option for individuals. A Chapter 13 Bankruptcy is known as a reorganization of debt. It is a 3-5-year plan where you may have the option of paying your arrears on vehicles, mortgage, rent and much more. When an individual file a Chapter 13, creditors, including landlords are forbidden from evicting a tenant without the approval of the Bankruptcy Court. Although this may not be an option for everyone, it is something to talk to your attorney about when deciding how to proceed.  

Questions or Comments:

If you have any questions about the above information, please contact our office at 602-910-7525 or through our contact form. Additionally, if there are any other topics you would like covered or legal questions you have related to COVID-19, please submit your questions or suggestions via our “Contact Us” form.

Who We Are:

Select Law, PLLC is a leading law firm helping people with bankruptcy, personal injury, tax, and civil litigation issues. We have locations in Phoenix and Scottsdale, Arizona and are available 7 days a week for FREE CONSULTATIONS. 

Select Law was created with one mission in mind: OUR LAWYERS WORK FOR YOU. We strive to give you personal attention, direct contact with your attorney, and superior results.

Disclaimer:

The information provided on this blog does not, and is not intended to, constitute legal advice; instead, all information, content, and materials available on this blog are for general informational purposes only. Information on this website may not constitute the most up-to-date legal or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Select Law, PLLC do not recommend or endorse the contents of the third-party sites. Readers of this website should contact their attorney to obtain advice with respect to any particular legal matter. No reader, user, or browser of this site should act or refrain from acting on the basis of information on this site without first seeking legal advice from counsel in the relevant jurisdiction. Only your individual attorney can provide assurances that the information contained herein – and your interpretation of it – is applicable or appropriate to your particular situation. Use of, and access to, this website or any of the links or resources contained within site do not create an attorney-client relationship between the reader, user, or browser and website authors, contributors, contributing law firms, or committee members and their respective employers. The views expressed at, or through, this site are those of the individual authors writing in their individual capacities only – not those of their respective employers. Based on the contents of this site are hereby expressly disclaimed. The content on this posting is provided "as is;" no representations are made that the content is error-free.

Contact Us Today

You need immediate answers, straightforward advice, and someone to fight for you. The attorneys at Select Law vigorously represent each client. No one will fight harder for you. Call now. (602) 910-7525.

Menu