Financial Questions? Stress from Creditors?
At this point now more than 4 months
into the Covid-19 Pandemic there is hardly an American that has not been affected
financially. Many are finding it
difficult to pay all of their financial obligations and thousands of our neighbors
in Tampa Bay have had unemployment affect their household income. The
Harvard School of Business is reporting that the Tampa Bay area has suffered nearly
a 12% loss in jobs in the past 4 months
and this does not account for decreased pay, furloughed individuals and those
people that have had their incomes drastically reduced. Another recent report showed that 32 % of
American had between a 50% and 100% loss of income since the inception of
Covid-19. Financial stress has never been greater.
On July 29, 2020 Governor DeSantis
issued Executive Order Number 20-180.
Nearly all news outlets reported that this Order continued the previous Order
that “suspended” or “stayed” foreclosure and evictions actions but a close look
at the Order is critical for a full understanding.
Addressing foreclosure action, the Executive
Order at Section 1, subpart A reads: “I hereby suspend and toll any statute
providing for final action at the conclusion of a mortgage foreclosure
proceeding under Florida law solely when the proceeding arises from nonpayment
of mortgage by a single-family mortgagor adversely affected by the COVID-19
emergency.” The section specifically
applied to those individuals who are adversely affected by Covid-19 and further
is suspends and tolls the proceeding it is not provide any forgiveness of amounts
alleged to be owed. I have consulted
with countless individuals who are under the belief that the mortgage company
is obligated to provide some forgiveness of amounts owed. This is simply not the case. Nor is this the case for any stay provide by
the CARES Act. If you are behind on your
mortgage and you are in an active foreclosure case or you have not made
payments since the onset on Covid-19 is it time to take action and understand
your rights and your options.
As to eviction actions, the Executive
Order at Section 1, subpart A reads: “I hereby suspend and toll any statute
providing for final action at the conclusion of an eviction proceeding under
Florida law solely when the proceeding arises from non-payment of rent by a
residential tenant adversely affected by the COVID-19 emergency.” This provision additionally provides that the
action will be suspended solely if the financial impact is due to Covid-19. This Order does not provide any forgiveness of
amounts owed under a lease agreement. It
should be noted that Florida law provides that a landlord has a right to seek
back rent. This is often referred to as
a Count II action.
In additional to foreclosures and
evictions many individuals are falling behind on their vehicle payments and
credit card obligations. Many times, the
credit card companies will immediately increase the interest rate to more than
24%. When faced with a difficult time
paying the minimum payment, any missed payments and increase in interest can
spell disaster for the average consumer.
Getting answers now is the key to staying
ahead of the looming financial crisis that will affect nearly everyone.
Mortgage companies do offer loss
mitigation options such as loan modification and reinstatement plans. Additionally, bankruptcy may be an option
when you need additional time to reorganize your debt and payments. A Chapter 13 Bankruptcy filing could afford
you 60 months to make up late payments and an additional option of working with
the lender on a modification inside of the Chapter 13 filing.
Additionally, you can negotiate with
your landlord to avoid having a judgment placed against you once the Court start
to hear eviction actions. Being
proactive in this regard may help you save your credit and possibly allow you
to not be forced to move if you can successfully negation a modification to
your lease agreement.
Finally, and unfortunately nearly
the entire financial world works off of your credit score which can be substantially
impacted by missed payments on credit accounts. Securing the services of an attorney can help limit
the effective of this and provide you guidance on your financial exposure in
the short and log term.
Each individual has a unique set of financial
facts. Each individual needs to have
legal advice to make the best decision for him or herself and their
family. It is time to act and get
educated on what is the best course of action.
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