Will Landlords Face Foreclosure if Tenants Cannot Be Evicted Due to COVID-19?
The coronavirus pandemic has created financial hardships for many Floridians. Unfortunately, landlords have faced an added burden, as eviction bans for most of 2020 have prevented them from evicting tenants who are not paying rent. This has put many landlords in the difficult position of not being able to collect rent while still having their own mortgage to pay. The good news is that there are foreclosure protections that might apply to help landlords avoid foreclosure.
The Protections For Homeowners Can Apply to Landlords, Too
The Department of Housing and Urban Development has enacted a rule to prevent foreclosures on properties with federally-backed loans through the end of 2020.This means that landlords whose properties are secured by Fannie Mae and Freddie Mac loans can be protected by that rule. However, the rule only applies to single-family residences, so landlords who own properties with a multi family loan will not be protected. The rule also does not cover other types of property loans. If you have a private loan from a hard money lender or a home equity line of credit that is not secured by the federal government, these protections might not apply to you.
So what can landlords do? It is important to consult with a real estate lawyer as soon as possible. Early intervention will give you better options for dealing with your financial circumstances. A lawyer can help you negotiate payment plans with your tenants or your own lender. Remember – it costs lenders a lot of money to go through the foreclosure process, so many are willing to negotiate payment in order to avoid that process. But higher arrears and longer debts make it more difficult to come to terms, so don’t wait to get advice from your own lawyer.
Call 407.452.4918 or contact us online for a consultation with the Florida eviction lawyers at Quattrochi & Torres.