Can My Florida Home Be Foreclosed in the Midst of COVID-19?

As COVID-19 continues to spread across the country, states have begun to make their own decisions regarding reopening after months of mandatory stay-at-home orders. Florida began its reopening process earlier than most and has seen a spike in its recorded cases. The state had its record high of cases on June 16, with 2,783 COVID-19 cases confirmed in a single day. With that state’s popularity as a vacation hotspot, some say that the reopening is happening sooner than it should. Florida may have begun to reopen its public spaces, but regulations remain in place to assist those struggling to pay their rent or mortgage to avoid a high number of evictions or foreclosures in the midst of a pandemic.

Financial Assistance

Governor Ron DeSantis signed the first housing executive order in early April, with an initial timeline of 45 days. According to the order, no mortgage foreclosure actions can be made for the time being. This also extends to renters who are late on rent payments. Landlords are unable to evict you from your apartment or house due to late payments during this time. However, the order strictly states that this cannot be construed as relieving homeowners or tenants from paying their mortgage or rent. Since the pandemic has lasted much longer than the 45 days allotted by Governor DeSantis, he has extended the order to last until July 1, 2020. Although the order may not completely relieve Floridians of their housing costs, it does allow them more time to earn and produce their mortgage costs or seek out additional help through loans or other means.

How Can I Cover the Costs?

Even though the governor’s order may extend mortgage due dates, you are still required to pay for your home once the order ends. One of the ways that people can save their homes is by filing for bankruptcy. Chapter 7 and Chapter 13 bankruptcies are two options, although Chapter 13 is more suitable if you are looking to keep your home and other assets. Similar to the current executive order, filing for Chapter 13 bankruptcy can put a halt to the foreclosure process and allow you to catch up on your past-due payments. This is an option for those who have a steady income and will be able to pay their past mortgage payments in due time, not those who do not have a regular paycheck. As the July 1 end date for the executive order looms in the near future, you may need to consider alternative options, such as filing for bankruptcy, if you are struggling to make ends meet but want to keep your home.

Contact a Fort Lauderdale, FL Bankruptcy Lawyer

Sources:

https://www.flgov.com/wp-content/uploads/orders/2020/EO_20-94.pdf

https://www.flgov.com/wp-content/uploads/orders/2020/EO_20-137.pdf

https://www.usatoday.com/story/news/nation/2020/06/17/florida-governor-ron-desantis-keeping-state-open-coronavirus-cases-rises/3210417001/

https://www.creditkarma.com/advice/i/chapter-7-vs-chapter-13