‘We want people to stay in their homes’: Mortgage lenders don’t expect a flood of foreclosures when moratorium ends

At Greenfield Savings Bank, about 20% of mortgage customers are in deferral, said President John H. Howland.

These are people who have told the bank they’ve suffered an economic loss from the coronavirus pandemic.

“It allows people to not make payments,” he said. “It basically goes on the back end of the mortgage.”

But now those deferrals of 30, 60 or 90 days are ending just as the statewide moratorium on mortgage foreclosures is set to end Saturday. A moratorium on residential evictions is also expected to sunset.

All are measures meant to soften the blow and guide households through COVID-19. But even with the moratoriums ending, local mortgage lenders don’t expect a rush of foreclosures to come sweeping through the system, as they did in the 2008-09 recession.

“We don’t know what is going to happen when the deferral period ends and people start payments,” Howland said. “We want

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A fraud ring was shut down. Then cops say they realized lawyers were in on it.

A married couple’s lucrative foreclosure fraud should’ve ended when they were convicted and locked up behind bars. But the illegal money kept flowing their way — thanks to two lawyers who were helping carry out the fraud, authorities say.

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The lawyers, Rashida Overby, 46, and Ria Sankar-Balram, 40, were working in concert with the couple, using their expertise to help steal nearly $750,000 in surplus funds from the sale of foreclosed homes, Broward sheriff’s investigators say.

It was one of the larger schemes to play out in a South Florida: Unsuspecting homeowners — many in over their head with mortgages — were unknowingly being taken advantage of. The married couple, Illya and Patricia Tinker, were part of a ring that illegally took ownership of dozens of homes through the mastery of falsified paperwork. The thieves were making out big — some $12 million in real estate value big,

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‘We’re just kicking the can down the road.’ Landlord expects foreclosures after CDC halts evictions

NASHVILLE, Tenn. (WTVF) — A local landlord said there will likely be foreclosures down the road unless unemployed renters get monetary help to pay rent.

The Centers for Disease Control and Prevention has halted evictions for people who can’t pay rent to help slow the spread of COVID-19. Since property owners are left paying mortgages, experts are forecasting a waterfall of evictions, and an influx of foreclosures. “We’re just kicking the can down the road, just pushing the issue that it doesn’t negate the rental lost income, the resident is still responsible for that after the moratorium ends, and in a lot of situations they’re going to be a worse state financially with all those back fees and things like that.”

Elliott Hallum is the President of the non-profit Real Estate Investors of Nashville, and he’s a residential real estate agent who has several rental properties. “I think they’re going

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Demonstrators call for state to extend moratorium on evictions and foreclosures

With the state moratorium on evictions set to expire on Oct. 17, nearly 100 protesters gathered outside the Park Street MBTA station at Boston Common on Sunday in support of a bill that would extend the ban.

The crowd surrounded a 6-foot sign reading, “Eviction Free Zone” and carried many handmade banners and placards supporting the bill, including several that said, “Stop 100,000+ Evictions.”

Advocates said the bill, which still needs to pass both branches of the Legislature and get approval by Governor Charlie Baker, would spare more than 100,000 households struggling due to the pandemic from displacement.

“We are just so anxious about what’s going to happen after Oct. 17,” said Lisa Owens, executive director of City Life/Vida Urbana, the tenants’ rights group that planned Sunday’s event.

“This is a crisis we can avert,” she said in a phone interview before the rally. “The clock is ticking,”

As the

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Fifth Third Collaborates with NeighborWorks America to Prevent Foreclosures and Evictions

Collaboration includes foreclosure mitigation, eviction prevention and financial counseling to those in need

The Fifth Third Foundation today announced a collaboration with NeighborWorks America to support efforts addressing the impacts of COVID-19 in local communities across 18 NeighborWorks America network organizations located throughout Fifth Third’s 10-state footprint.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20201007005802/en/

Byna Elliott, senior vice president and chief enterprise responsibility officer, Fifth Third Bank (Photo: Business Wire)

The $600,000 collaboration, which will be funded through The Fifth Third Foundation’s COVID-19 relief, recovery and resiliency funds, will assist the network organizations’ efforts to prevent foreclosures and evictions; assist with the impacts from the COVID-19 pandemic in communities; respond to critical needs; provide foreclosure and eviction mitigation and counseling; and financial coaching and emergency rental assistance for clients, as well as homeownership counseling and education.

“The pandemic has for many severely affected their ability to

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Renters, landlords need legislative eviction relief

With time running out for financially struggling renters, it appears Gov. Charlie Baker wants the state Legislature to step up and decide those individuals’ fate.

Baker signed a moratorium in April blocking most evictions and foreclosures for several months, aiming to avoid housing disruptions during the COVID-19 pandemic.

He later extended its expiration to Oct. 17, which he could do again in 90-day increments. The ban doesn’t cover rents due before that April directive.

Baker hasn’t made any public pronouncement concerning the expiration of the moratorium.

Three landlords previously tried suing the state, alleging the ban breaches the Constitution’s contracts clause and prevents them from exercising free speech, petitioning the judiciary and acquiring compensation for unlawful land taking. While their suit failed, even the judge who upheld the ban apparently questioned how long this arrangement can continue.

“I think this affirms the principle that we as legislators are protecting the

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Report: Court intervention could prevent eviction wave

BOSTON (SHNS) – The Massachusetts judiciary should intervene to prevent a potential surge of tens of thousands of housing removals that could hit when the state’s temporary ban on evictions and foreclosures expires this month, a regional planning agency urged in a new report.

At least 80,000 households in Massachusetts, including both renters and homeowners, will struggle to cover the costs of both housing and basic needs this month, the Metropolitan Area Planning Council concluded after studying unemployment and Census Bureau data.

With the moratorium expiring on Oct. 17, it is likely too late for policy solutions such as increasing rental assistance, offering legal assistance to tenants, or implementing foreclosure protection for struggling landlords, the council representing 101 cities and towns in the greater Boston region said.

Instead, the group directed its message to the state’s Housing Court and to the Baker administration.

Judicial leaders should delay all non-essential eviction

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Nev. Lenders Must Brace For The Next Wave Of Foreclosures


By Amy Sorenson, Kelly Dove and Tanya Lewis

Law360 is providing free access to its coronavirus coverage to make sure all members of the legal community have accurate information in this time of uncertainty and change. Use the form below to sign up for any of our daily newsletters. Signing up for any of our section newsletters will opt you in to the daily Coronavirus briefing.

Law360 (October 6, 2020, 3:50 PM EDT) —

Amy Sorenson
Amy Sorenson
Kelly Dove
Kelly Dove
Tanya Lewis
Tanya Lewis

Nevada was an epicenter of the Great Recession and housing crisis of 2008-2009. Home prices plummeted, accompanied by widespread job losses and decreases in income. Homeowners defaulted on mortgages and, in some cases, walked away from their homes.

With such significant personal and financial impacts on borrowers also came significant financial impacts on lenders. While the effects of mortgage defaults were widely reported, lenders also sustained substantial losses as the

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Commercial-Property Foreclosures Are Poised to Rise as Covid-19 Lingers

The coronavirus pandemic came at a bad time for the Burnsville Center mall near Minneapolis. In May,

Macy’s Inc.

said it would close its store. J.C. Penney Co., which also has a store at the mall, filed for bankruptcy.

Owner

CBL & Associates Properties Inc.

risked losing the mall if it stopped making payments on the $63 million mortgage. Instead, the company overseeing

CBL’s

securitized mortgage agreed to defer payments for three months, according to the loan servicer’s commentary collected by data firm Trepp LLC.

But CBL didn’t pay off the loan after three months. Now, Burnsville Center is one of hundreds of properties across the country heading to foreclosure.

CBL didn’t respond to requests for comment.

Lenders, for the most part, were initially happy to grant debt forbearance and hope that the pandemic would end soon. But many now expect the pandemic and its aftereffects to linger for

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How Short Sales and Foreclosures Affect Your Taxes

Whenever you sell a home, you need to calculate your capital gains to determine whether you owe any tax. If you engage in a short sale or your mortgage lender forecloses on your home, the Internal Revenue Service treats it just like a sale. Foreclosures and short sales may also require you to recognize ordinary income if the lender cancels any of your outstanding mortgage balance and you’re ineligible for an exclusion.

Short Sales and Foreclosures

Both short sales and foreclosures are usually the result of a borrower’s inability to continue making mortgage payments.

A short sale is where your mortgage lender allows you to sell the home for less than your outstanding loan balance and cancels your obligation to repay the remainder of the loan.

With a foreclosure, the mortgage lender will take possession of the home if it doesn’t receive scheduled mortgage payments over an extended period

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