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Massachusetts Moratorium Marches On

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On July 21, Massachusetts Governor Charlie Baker extended the moratorium on evictions and foreclosures in Massachusetts (which was set to expire on August 18, 2020) by 60 days to October 17, 2020, due to the ongoing coronavirus pandemic.

The wide-sweeping moratorium forbids all foreclosures in Massachusetts by prohibiting lenders from publishing foreclosure notices, exercising of a power of sale, exercising a right of entry, initiating a judicial or non-judicial foreclosure process, or filing a complaint to determine military status of a mortgagor under the Servicemembers Civil Relief Act. The moratorium does not apply to vacant or abandoned properties.

While the moratorium currently is extended for 60 days, it is likely that there will not be any foreclosures or evictions in Massachusetts in the foreseeable future. Currently, there is drafted legislation HD.5166 and S.2831, An Act to Guarantee Housing Stability During The COVID-19 Emergency and Recovery, which proposes to extend the current eviction and foreclosure moratoriums in Massachusetts for 12 months after the end of the state of emergency. The proposed legislation also provides for a mandatory forbearance of 12 months after the end of the state of emergency. The proposed legislation is currently in the House.

The Federal agencies who insure and guaranty federally backed mortgage loans previously extended their moratoriums on foreclosures, and foreclosure related evictions, to August 31, 2020. For a summary of the federal moratorium, please see our prior alert here.

Our attorneys at McGlinchey will continue to monitor the foreclosure moratoriums. If you need help understanding or interpreting the guidelines or have any other questions, please contact McGlinchey’s COVID-19 CFS Litigation Task Force.

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CFPB’s Interim Final Rule: Pandemic Debt Collection Practices Effective May 3

April 26, 2021

On April 19, 2021, the CFPB announced that it issued an interim final rule in support of the CDC’s residential eviction moratorium, effective May 3, 2021, which requires debt collectors to provide written notice to tenants of their rights under the CDC Order and prohibits debt collectors from misrepresenting tenants’ eligibility for protection from eviction under the moratorium.

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State COVID-related Foreclosure and Eviction Moratorium Updates

October 23, 2020

Due to the economic impacts of COVID-19, many states have issued moratoriums on foreclosures and evictions. Some of those moratoriums have expired. However, even if a lender is now able to obtain a foreclosure judgment and take a property to sale, the Center for Disease Control’s nationwide restriction on evictions may still prevent an ownerMore

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Florida and Texas Extend Borrower Protections Through September

September 2, 2020

Florida has extended an Executive Order providing mortgage foreclosure and eviction relief for borrowers through October 1, 2020, while the Texas Supreme Court entered an emergency order extending the state’s moratorium on evictions from residences that are subject to the CARES Act for housing financed by federal programs through September 30, 2020.

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The Federal Agencies and Enterprises Extend Foreclosure Moratoriums Again

June 26, 2020

Three federal agencies who make, guarantee, and insure mortgage loans, HUD’s FHA, the VA, and the USDA Rural Development Department, and two federal enterprises who purchase and securitize mortgages, Fannie Mae and Freddie Mac, extended their moratoriums on foreclosures and foreclosure-related evictions through August 31, 2020.