Foreclosure and Eviction During COVID-19
The federal and state governments are working diligently responding to concerns of foreclosure or eviction during the COVID-19 pandemic. With many states enforcing stay-at-home orders, many individuals have lost their source of income, saw partial income declines, and are being forced to work from home.
Although many are concerned that they will not be able to make their rent or mortgage payments, the federal government has provided some relief. On March 18, the Department of Housing and Urban Development, the Federal Housing Administration, and the Federal Housing Finance Agency allowed for an immediate, 60-day moratorium on foreclosure and evictions for those with FHA-insured mortgages.
The U.S. Department of Agriculture is working with homeowners and lenders to help ensure families are able to keep their residences.
Judicial Action in Illinois:
Foreclosures in Illinois are judicial, meaning the lender must file a lawsuit in the state court.
The following actions were taken prior to the extension:
Federal Court — Northern District: A 21-day extension to all civil case deadlines was announced. Hearings, trials, and settlements scheduled through April 3rd, 2020 will be rescheduled at a later date.
Federal Court — Southern District: Civil cases will be postponed.
Federal Court — Central District: Civil hearings will be taken care of online or via the phone.
State Courts have been reduced to only essential proceedings. Civil proceedings in Cook County through mid-April have been suspended for the time being.
With the Illinois shelter-in-place order extended through the entire month of April, it is likely that court proceedings will be further delayed as well.
If you’re a lender concerned about mortgage foreclosure or creditors’ rights, our law firm can help. For legal guidance, get in touch with a real estate attorney at Lee Scott Perres, P.C.
