Brittany Kelly, Author at Equity Experts

President Biden directed the Centers for Disease Control and Prevention (CDC) to extend the nationwide ban on evictions through March 31st, 2021. The executive order also extends the foreclosure moratorium on government-backed mortgages, meaning that homeowners can apply for mortgage forbearance if they need it.

The Department of Housing and Urban Development extended a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through February 28^th, 2021.

United States Federal Government

The CAI recommended that community associations adopt a foreclosure moratorium through January 31^st, 2021. However, the moratorium also mentions that any homeowners who cannot pay their assessments due to financial hardships need to contact their community association to work out a payment plan. That is why, at Equity Experts, we work hard to communicate with any delinquent homeowners prior to recommending legal action.

Additionally, in “Covid19 – The Importance of Understanding the Financial Model of Community Associations”, CAI advised that “Community association boards of directors have an obligation, by statute, to act in the best interests of the corporation and one of these actions is to work to ensure the financial health of the community. One way to do this is to continue to manage the financial affairs, by collecting assessments from the owners.”

Assessments for many community associations are the only source of income and are used to pay most of the association’s expenses. Unfortunately, these expenses haven’t gone away with the outbreak of COVID-19. In fact, the CAI has found that in some cases expenses have even increased due to hiring additional cleaning services and/or consulting with legal counsel to determine how to navigate through these unprecedented times.

TEXAS - foreclosure rules, regulations, and guidance

Each state also has its own set of rules, regulations, and guidance that can vary throughout the state even on a county and local level.

Texas does not currently have any specific rules or regulations that relate to the foreclosure or eviction process. However, the state did set up an Eviction Diversion Program to help landlords and tenants who are unable to pay their mortgage or rent. At Equity Experts, we ensure that homeowners are aware of any potential programs that may help them when facing a hardship.

As your partner and trusted advisor, we will pursue legal action at the direction of the board. It is our job to ensure we let our clients know about risks we are aware of so that they can make an educated decision for their communities.

For those concerned about any continued moratoriums or the implication or perception of foreclosing in your community, rest assured that foreclosure, like anything else, is a process. Taking the first step towards addressing the delinquency will allow the owner an opportunity to recognize the seriousness of the debt and address it timely. Any actual sales will still be several months in the future.

Additionally, if you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan. At Equity Experts, we utilize a Hardship Calculator to help determine the level of financial assistance or forgiveness that is necessary for any homeowner given their financial situation.

Virginia Legal Update

As we have been discussing in previous legal updates, foreclosure during the pandemic has been a difficult decision for boards. They are facing the challenge of honoring their obligation to pursue past due assessments timely while balancing the importance of public safety and compassion towards their neighbors. As we have done in our previous updates, we want to provide you with some guidance on how you should approach foreclosures as we move into the new year.

While the decision if and when to initiate legal action is nuanced, we believe strongly that up-front proactive communication prior to foreclosing or initiating a lawsuit is unquestionably important. If Equity Experts has been working your delinquencies, almost every owner has received multiple communications through various channels offering both payment and settlement options, as well as assistance for those facing hardship. We have found that documenting proactive collection attempts prior to foreclosure lessens risks and improves recoverability when those actions are required.

For the financial health of the community, it is imperative to collect all past due assessments in a timely manner. There are several ways communities, through their collection partners, can begin their collections through compassionate outreach opportunities, including not just written communication, but also phone calls, emails, or other methods. Communicating with a past due owner in a way that is most convenient to them not only resolves accounts more quickly, but it also provides the homeowner a better experience and promotes the type of goodwill and partnership that helps your communities thrive.

NATIONAL FORECLOSURE RULES & REGULATIONS

President Biden directed the Centers for Disease Control and Prevention (CDC) to extend the nationwide ban on evictions through March 31st, 2021. The executive order also extends the foreclosure moratorium on government-backed mortgages, meaning that homeowners can apply for mortgage forbearance if they need it.

The Department of Housing and Urban Development extended a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through February 28^th, 2021.

The CAI recommended that community associations adopt a foreclosure moratorium through January 31^st, 2021. However, the moratorium also mentions that any homeowners who cannot pay their assessments due to financial hardships need to contact their community association to work out a payment plan. That is why, at Equity Experts, we work hard to communicate with any delinquent homeowners prior to recommending legal action.

Additionally, in “Covid19 – The Importance of Understanding the Financial Model of Community Associations”, CAI advised that “Community association boards of directors have an obligation, by statute, to act in the best interests of the corporation and one of these actions is to work to ensure the financial health of the community. One way to do this is to continue to manage the financial affairs, by collecting assessments from the owners.”

Assessments for many community associations are the only source of income and are used to pay most of the association’s expenses. Unfortunately, these expenses haven’t gone away with the outbreak of COVID-19. In fact, the CAI has found that in some cases expenses have even increased due to hiring additional cleaning services and/or consulting with legal counsel to determine how to navigate through these unprecedented times.

Virginia - foreclosure rules, regulations, and guidance

Each state also has its own set of rules, regulations, and guidance that can vary throughout the state even on a county and local level.

Virginia does not currently have any specific rules or regulations that relate to the foreclosure or eviction process. However, due to the Pandemic, Virginia Rent and Mortgage Relief Program (RMRP) was set up to assist homeowners and renters who are facing hardships and unable to make payments. At Equity Experts, we ensure that homeowners are aware of any potential programs that may help them when facing a hardship.

As your partner and trusted advisor, we will pursue legal action at the direction of the board. It is our job to ensure we let our clients know about risks we are aware of so that they can make an educated decision for their communities.

For those concerned about any continued moratoriums or the implication or perception of foreclosing in your community, rest assured that foreclosure, like anything else, is a process. Taking the first step towards addressing the delinquency will allow the owner an opportunity to recognize the seriousness of the debt and address it timely. Any actual sales will still be several months in the future.

Additionally, if you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan. At Equity Experts, we utilize a Hardship Calculator to help determine the level of financial assistance or forgiveness that is necessary for any homeowner given their financial situation.

North Carolina Legal Update

As we have been discussing in previous legal updates, foreclosure during the pandemic has been a difficult decision for boards. They are facing the challenge of honoring their obligation to pursue past due assessments timely while balancing the importance of public safety and compassion towards their neighbors. As we have done in our previous updates, we want to provide you with some guidance on how you should approach foreclosures as we move into the new year.

While the decision if and when to initiate legal action is nuanced, we believe strongly that up-front proactive communication prior to foreclosing or initiating a lawsuit is unquestionably important. If Equity Experts has been working your delinquencies, almost every owner has received multiple communications through various channels offering both payment and settlement options, as well as assistance for those facing hardship. We have found that documenting proactive collection attempts prior to foreclosure lessens risks and improves recoverability when those actions are required.

For the financial health of the community, it is imperative to collect all past due assessments in a timely manner. There are several ways communities, through their collection partners, can begin their collections through compassionate outreach opportunities, including not just written communication, but also phone calls, emails, or other methods. Communicating with a past due owner in a way that is most convenient to them not only resolves accounts more quickly, but it also provides the homeowner a better experience and promotes the type of goodwill and partnership that helps your communities thrive.

NATIONAL FORECLOSURE RULES & REGULATIONS

The government halted all foreclosure and eviction action on federally backed loans through the CARES act and again through executive order.

On December 27, 2020, the President signed into law the Consolidated Appropriations Act, 2021. Section 502 of Title V of Division N of that Act extends the expiration date of the CDC Order titled, “Temporary Halt in Residential Evictions to Prevent the Spread of COVID-19” (85 Fed. Reg. 55292, September 4, 2020). The new expiration date is January 31, 2021 unless extended, modified, or rescinded.

The Department of Housing and Urban Development extended a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through February 28^th, 2021.

United States Federal Government

The CAI recommended that community associations adopt a foreclosure moratorium through January 31^st, 2021. However, the moratorium also mentions that any homeowners who cannot pay their assessments due to financial hardships need to contact their community association to work out a payment plan. That is why, at Equity Experts, we work hard to communicate with any delinquent homeowners prior to recommending legal action.

Additionally, in “Covid19 – The Importance of Understanding the Financial Model of Community Associations”, CAI advised that “Community association boards of directors have an obligation, by statute, to act in the best interests of the corporation and one of these actions is to work to ensure the financial health of the community. One way to do this is to continue to manage the financial affairs, by collecting assessments from the owners.”

Assessments for many community associations are the only source of income and are used to pay most of the association’s expenses. Unfortunately, these expenses haven’t gone away with the outbreak of COVID-19. In fact, the CAI has found that in some cases expenses have even increased due to hiring additional cleaning services and/or consulting with legal counsel to determine how to navigate through these unprecedented times.

North carolina - foreclosure rules, regulations, and guidance

Each state also has its own set of rules, regulations, and guidance that can vary throughout the state even on a county and local level.

In North Carolina, Chief Justice Paul Newby issued a directive leaving court operation decisions to local jurisdictions. For instance, in Wake County, the Chief Judge has decided to hold virtual hearings.

At Equity Experts, we monitor each state, county, and city to ensure we stay apprised to any changes in foreclosure rules, regulations, and guidance. If there is any specific information you need that we are not addressing, including additional county court operational procedures, please reach out to us at [email protected].

As your partner and trusted advisor, we will pursue legal
action at the direction of the board. It is our job to ensure we let our clients know about risks we are aware of so that they can make an educated decision for their communities.

For those concerned about any continued moratoriums or the implication or perception of foreclosing in your community, rest assured that foreclosure, like anything else, is a process. Taking the first step towards addressing the delinquency will allow the owner an opportunity to recognize the seriousness of the debt and address it timely. Any actual sales will still be several months in the future.

Additionally, if you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan. At Equity Experts, we utilize a Hardship Calculator to help determine the level of financial assistance or forgiveness that is necessary for any homeowner given their financial situation.

California Legal Update

As we have been discussing in previous legal updates, foreclosure during the pandemic has been a difficult decision for boards. They are facing the challenge of honoring their obligation to pursue past due assessments timely while balancing the importance of public safety and compassion towards their neighbors. As we have done in our previous updates, we want to provide you with some guidance on how you should approach foreclosures as we move into the new year.

While the decision if and when to initiate legal action is nuanced, we believe strongly that up-front proactive communication prior to foreclosing or initiating a lawsuit is unquestionably important. If Equity Experts has been working your delinquencies, almost every owner has received multiple communications through various channels offering both payment and settlement options, as well as assistance for those facing hardship. We have found that documenting proactive collection attempts prior to foreclosure lessens risks and improves recoverability when those actions are required.

For the financial health of the community, it is imperative to collect all past due assessments in a timely manner. There are several ways communities, through their collection partners, can begin their collections through compassionate outreach opportunities, including not just written communication, but also phone calls, emails, or other methods. Communicating with a past due owner in a way that is most convenient to them not only resolves accounts more quickly, but it also provides the homeowner a better experience and promotes the type of goodwill and partnership that helps your communities thrive.

NATIONAL FORECLOSURE RULES & REGULATIONS

President Biden directed the Centers for Disease Control and Prevention (CDC) to extend the nationwide ban on evictions through March 31st, 2021. The executive order also extends the foreclosure moratorium on government-backed mortgages, meaning that homeowners can apply for mortgage forbearance if they need it.

The Department of Housing and Urban Development extended a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through February 28^th, 2021.

The CAI recommended that community associations adopt a foreclosure moratorium through January 31^st, 2021. However, the moratorium also mentions that any homeowners who cannot pay their assessments due to financial hardships need to contact their community association to work out a payment plan. That is why, at Equity Experts, we work hard to communicate with any delinquent homeowners prior to recommending legal action.

Additionally, in “Covid19 – The Importance of Understanding the Financial Model of Community Associations”, CAI advised that “Community association boards of directors have an obligation, by statute, to act in the best interests of the corporation and one of these actions is to work to ensure the financial health of the community. One way to do this is to continue to manage the financial affairs, by collecting assessments from the owners.”

Assessments for many community associations are the only source of income and are used to pay most of the association’s expenses. Unfortunately, these expenses haven’t gone away with the outbreak of COVID-19. In fact, the CAI has found that in some cases expenses have even increased due to hiring additional cleaning services and/or consulting with legal counsel to determine how to navigate through these unprecedented times.

CALIFORNIA - foreclosure rules, regulations, and guidance

Each state also has its own set of rules, regulations, and guidance that can vary throughout the state even on a county and local level.

California rolled out a Blueprint for a Safer Economy. This initiative places every county in California into tiers based on its test positivity and adjusted case rate for tier assignment. This means that rules and regulations vary throughout the different counties. At Equity Experts, we monitor the rules and regulations for each county to ensure that we stay compliant and can offer appropriate guidance to our clients. If you have questions regarding a specific county please reach out to [email protected].

As your partner and trusted advisor, we will pursue legal action at the direction of the board. It is our job to ensure we let our clients know about risks we are aware of so that they can make an educated decision for their communities.

For those concerned about any continued moratoriums or the implication or perception of foreclosing in your community, rest assured that foreclosure, like anything else, is a process. Taking the first step towards addressing the delinquency will allow the owner an opportunity to recognize the seriousness of the debt and address it timely. Any actual sales will still be several months in the future.

Additionally, if you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan. At Equity Experts, we utilize a Hardship Calculator to help determine the level of financial assistance or forgiveness that is necessary for any homeowner given their financial situation.

Important Legal Update for Community Associations

Do your associations have the ability to foreclose, and even if they do, should they?

We recognize that many of our clients are currently facing or will face this question soon. It is ultimately the decision of the board whether to proceed on these actions when legally permitted. Those decisions often require a case-by-case analysis rather than a blanket policy, and it is important to have the insights required to make the best choice.

Below we will provide both easy access to the current applicable statutory restrictions for your state, as well as additional important factors to consider.

While the decision if and when to initiate legal action is nuanced, we believe strongly that up-front proactive communication prior to this decision point is unquestionably important.

There are several ways communities, through their collection partners, can begin their collections through compassionate outreach opportunities, including not simply just written communication, but also phone calls, emails, or other methods. Communicating with a past due owner in way that is most convenient to them not only resolves accounts more quickly, it provides the homeowner a better experience and promotes the type of goodwill and partnership that helps your communities thrive.

If you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan.

If an account remains past due after their proactive measures have been completed, the board must then decide whether to continue reaching out, or to move the account to legal action. In the past several months local, state, and federal statutes have impeded an association’s ability to complete a foreclosure action.

National foreclosure sentiment

The national sentiment against foreclosure action has been, and remains, significant.

The government halted all foreclosure and eviction action on federally backed loans through the cares act and again through executive order. An updated order extended this through the end of the year in most circumstances.

The Department of Housing and Urban Development will extend a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through the end of the year.

The CAI recommended halting foreclosure to match the Federal Government’s Policy
Only recommends liens in cases where there is exposure to the Association in not placing a lien

FORECLOSURE Rules, regulations, and guidance

Each state also has their own set of rules, regulations, and guidance that can vary throughout the state even on a county and local level.

At Equity Experts, we monitor each state, county and city to ensure we stay apprised to any changes in foreclosure rules, regulations, and guidance. If there is any specific information you need that we are not addressing, please reach out to us at [email protected].

Additionally, a significant question for many is the ability for debtors to appear in court to defend themselves. The current recommendation, due to the pandemic, is to avoid public spaces and limit the number of people in one place. Those facing foreclosure might feel that they are facing a decision whether to compromise their health and safety to challenge the association foreclosure action.

As your partner and trusted advisor, we will pursue legal action at the direction of the board. It is our job to ensure we let our clients know about risks we are aware of, so that they can make an educated decision for their communities.

Minnesota Legal Update for Community Associations

Do your associations have the ability to foreclose, and even if they do, should they?

We recognize that many of our clients are currently facing or will face this question soon. It is ultimately the decision of the board whether to proceed on these actions when legally permitted. Those decisions often require a case-by-case analysis rather than a blanket policy, and it is important to have the insights required to make the best choice.

Below we will provide both easy access to the current applicable statutory restrictions for your state, as well as additional important factors to consider.

While the decision if and when to initiate legal action is nuanced, we believe strongly that up-front proactive communication prior to this decision point is unquestionably important.

There are several ways communities, through their collection partners, can begin their collections through compassionate outreach opportunities, including not simply just written communication, but also phone calls, emails, or other methods. Communicating with a past due owner in way that is most convenient to them not only resolves accounts more quickly, it provides the homeowner a better experience and promotes the type of goodwill and partnership that helps your communities thrive.

If you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan.

If an account remains past due after their proactive measures have been completed, the board must then decide whether to continue reaching out, or to move the account to legal action. In the past several months local, state, and federal statutes have impeded an association’s ability to complete a foreclosure action.

National foreclosure sentiment

The national sentiment against foreclosure action has been, and remains, significant.

The government halted all foreclosure and eviction action on federally backed loans through the cares act and again through executive order. An updated order extended this through the end of the year in most circumstances.

The Department of Housing and Urban Development will extend a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through the end of the year.

The CAI recommended halting foreclosure to match the Federal Government’s Policy
Only recommends liens in cases where there is exposure to the Association in not placing a lien

MINNESOTA FORECLOSURE Rules, regulations, and guidance

Each state also has their own set of rules, regulations, and guidance that can vary throughout the state even on a county and local level.

Examples to consider in your market are:

The emergency order issued in March by Governor Tim Walz that prohibits mortgage holders from filing eviction actions to recover possession of a property after termination of a redemption period.
An updated order, effective in August, further clarified these restrictions and the state’s strong position against evictions and foreclosure, including prohibiting financial institutions from foreclosing.
”Financial institutions holding home mortgages are requested to implement an immediate moratorium on all pending and future foreclosures when the foreclosure arises out of a substantial decrease in income or substantial out of pocket medical expenses caused by the COVID-19 pandemic, or any local, state, or federal governmental response to COVID-19. Financial institutions are also strongly urged not to impose late fees or other penalties for late mortgage payments related to the COVID-19 pandemic.”

Additionally, a significant question for many is the ability for debtors to appear in court to defend themselves. The current recommendation, due to the pandemic, is to avoid public spaces and limit the number of people in one place. Those facing foreclosure might feel that they are facing a decision whether to compromise their health and safety to challenge the association foreclosure action.

As your partner and trusted advisor, we will pursue legal action at the direction of the board. It is our job to ensure we let our clients know about risks we are aware of, so that they can make an educated decision for their communities.

Virginia Legal Update for Community Associations

Do your associations have the ability to foreclose, and even if they do, should they?

We recognize that many of our clients are currently facing or will face this question soon. It is ultimately the decision of the board whether to proceed on these actions when legally permitted. Those decisions often require a case-by-case analysis rather than a blanket policy, and it is important to have the insights required to make the best choice.

Below we will provide both easy access to the current applicable statutory restrictions for your state, as well as additional important factors to consider.

While the decision if and when to initiate legal action is nuanced, we believe strongly that up-front proactive communication prior to this decision point is unquestionably important.

There are several ways communities, through their collection partners, can begin their collections through compassionate outreach opportunities, including not simply just written communication, but also phone calls, emails, or other methods. Communicating with a past due owner in way that is most convenient to them not only resolves accounts more quickly, it provides the homeowner a better experience and promotes the type of goodwill and partnership that helps your communities thrive.

If you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan.

If an account remains past due after their proactive measures have been completed, the board must then decide whether to continue reaching out, or to move the account to legal action. In the past several months local, state, and federal statutes have impeded an association’s ability to complete a foreclosure action.

National foreclosure sentiment

The national sentiment against foreclosure action has been, and remains, significant.

The government halted all foreclosure and eviction action on federally backed loans through the cares act and again through executive order. An updated order extended this through the end of the year in most circumstances.

The Department of Housing and Urban Development will extend a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through the end of the year.

The CAI recommended halting foreclosure to match the Federal Government’s Policy
Only recommends liens in cases where there is exposure to the Association in not placing a lien

Virginia FORECLOSURE Rules, regulations, and guidance

Each state also has their own set of rules, regulations, and guidance that can vary throughout the state even on a county and local level.

An example to consider in your market is:

Once a foreclosure is complete in VA, there is no right of redemption period, which means eviction would follow shortly thereafter and is an important step of the process. Currently, the CDC has placed a moratorium on evictions until the end of the year, preventing almost all evictions from taking place. This restriction could significantly discourage participation at foreclosure sales, which would both drive down average home sales price for the community and lead to challenges of the validity of the sale.

As your partner and trusted advisor, we will pursue legal action at the direction of the board. It is our job to ensure we let our clients know about risks we are aware of, so that they can make an educated decision for their communities.

North Carolina Legal Update for Community Associations

Do your associations have the ability to foreclose, and even if they do, should they?

We recognize that many of our clients are currently facing or will face this question soon. It is ultimately the decision of the board whether to proceed on these actions when legally permitted. Those decisions often require a case-by-case analysis rather than a blanket policy, and it is important to have the insights required to make the best choice.

Below we will provide both easy access to the current applicable statutory restrictions for your state, as well as additional important factors to consider.

While the decision if and when to initiate legal action is nuanced, we believe strongly that up-front proactive communication prior to this decision point is unquestionably important.

There are several ways communities, through their collection partners, can begin their collections through compassionate outreach opportunities, including not simply just written communication, but also phone calls, emails, or other methods. Communicating with a past due owner in way that is most convenient to them not only resolves accounts more quickly, it provides the homeowner a better experience and promotes the type of goodwill and partnership that helps your communities thrive.

If you are able to reach the past due owner prior to beginning legal action you can evaluate any hardships they may be facing, as well as their ability and willingness to repay their balance through a payment plan.

If an account remains past due after their proactive measures have been completed, the board must then decide whether to continue reaching out, or to move the account to legal action. In the past several months local, state, and federal statutes have impeded an association’s ability to complete a foreclosure action.

National foreclosure sentiment

The national sentiment against foreclosure action has been, and remains, significant.

The government halted all foreclosure and eviction action on federally backed loans through the cares act and again through executive order. An updated order extended this through the end of the year in most circumstances.

The Department of Housing and Urban Development will extend a ban on evictions and foreclosures for homes backed by the Federal Housing Administration (FHA) through the end of the year.