How Will COVID 19 Affect Foreclosure in California?
The COVID-19 pandemic has impacted world economies and led to a public health and financial crisis. A record-breaking unemployment number further results in housing insecurities due to substantial income losses.
To keep tenants and homeowners safe and surviving amidst the adverse effects of the virus, the United States government has established critical foreclosure support systems across the country. It means that families and individuals will not lose their homes while trying to recuperate from the financial implications of the pandemic.
The CARES (Coronavirus Aid, Relief and Economic Security) Act first came into existence for tenants with federally backed mortgages. Next, orders were given to address evictions (with no concrete prevention policies in the then Trump administration). Later, the Federal Housing Administration announced additional protections for those struggling with mortgage payments. In addition, some of the major lenders suspended evictions and foreclosures.
Many state governments have implemented their foreclosure or eviction bans and other protections. Besides, several relief programs exist at the local (city or county) level. The purpose of such aid is to prevent tenant displacement and reduce public health ramifications.
However, many of these programs have already expired or are about to. Several tenants, homeowners, and landlords remain unaware of the strategies for obtaining relief. Talking about California, here are some of the measures taken by the jurisdiction to protect homeowners and renters in these testing times:
Homeowners in California impacted by the coronavirus outbreak were allowed up to 90 days forbearance period provided there is no negative credit. They are also relieved from late fees, charges, and penalties. Additionally, tenants cannot be evicted due to non-payments until September 30th, 2021.
The California Public Utilities Commission has also provided utility shutoff protection due to non-payment until September 30th, 2021. Organizations will be responsible for notifying customers of debt solutions to pay off deferred bills as necessary.
The state is also distributing eviction protection relief, prioritizing cities and counties with unfulfilled needs.
With the effects of COVID-19 continually wearing down the economy, much of the aid seems to have dried out. So, be prepared for foreclosure proceedings when the applicable generous moratoriums end. But, if you got extra time, make constructive use of it.
The pandemic has placed several American families under tremendous pressure. While foreclosure measures assist you in easing your anxiety, make sure you use the time wisely resolving housing payment problems. Also, beware of foreclosure scams, protect your credit history, and talk to an expert to seek legal help.
Call the Hernandez Law and Realty team at 916.728.1500 to learn about your options in California.