FL Governor Suspends Foreclosures, Evictions Over Coronavirus
MIAMI, FL — With the economic fallout from the new coronavirus leaving some Floridians unable to pay their mortgages or rent, Gov. Ron DeSantis has ordered all foreclosures and residential evictions in the state halted for 45 days.
The order issued Thursday came as Miami attorney David Winker shared court documents with Patch that appeared to show how some Miami-area lenders had disregarded an earlier nationwide moratorium on foreclosures and evictions relating to FHA-insured single-family mortgages.
The Florida governor's executive order assures no further action will take place for the next 45 days on any mortgage foreclosures around the state, including those covered by the nationwide moratorium. The Florida order does not remove the obligation to make mortgage and rent payments. Don't miss updates about precautions in Florida as they are announced. Sign up for Patch news alerts and newsletters.
In addition to freezing foreclosure actions, the Florida measure also blocks the evictions of Florida renters for nonpayment of rent in the case of residential renters who have been harmed by the new coronavirus outbreak.
Attorney Winker told Patch he came across dozens of foreclosure actions that appeared to be in violation of the earlier federal moratorium that took effect on March 18.
"You're not supposed to foreclose for nonpayment," Winker said. "You can foreclose for other reasons, but not for nonpayment."
While it was difficult to identify which foreclosure actions involved federally-insured loans, Winker said he looked for those cases in which the U.S. Secretary of Housing and Urban Development was named as a defendant.
"You know that's a federally insured one," Winker asserted. "The banks and their lawyers are just ignoring [the moratorium]. They are filing."
A spokesperson for the American Bankers Association referred Patch to HUD's Federal Housing Administration when asked if lenders were permitted to file foreclosure actions on federally insured loans after March 18 or if the practice Winker described in the Miami area has been happening across the country.
A senior Housing and Urban Development official who asked not to be identified told Patch the federal moratorium applies to both new foreclosures and those that were already underway.
“Properties secured by FHA-insured single family mortgages are subject to a moratorium on foreclosure for a period of 60 days," the HUD official said. "The moratorium applies to the initiation of foreclosures and to the completion of foreclosures in process.”
DeSantis noted the coronavirus health emergency has "impacted the ability of many Floridians" to make timely mortgage and rent payments. A number of Floridians found themselves in difficult positions this week as April rent and mortgage obligations came due.
President Donald Trump announced the Department of Housing and Urban Development had authorized the Federal Housing Administration to implement the foreclosure and eviction moratorium for FHA-insured single-family mortgages on March 18 in response to the COVID-19 outbreak.
Winker said the language in the Florida governor's order will offer protections to people who have lost their jobs as a result of the outbreak, but not small business owners who rent their premises.
"The moratorium on foreclosures applies to both residential and commercial foreclosures but the moratorium on evictions only applies to residential," Winker said. "So all the restaurants and bars, beauty salons and barber shops — there’s no moratorium."
This article originally appeared on the Miami Patch
