Eviction and foreclosure moratoriums
Brought to you by the Real Estate Recovery Team of McDonald Hopkins LLC
Updated May 18, 2020
COVID-19 has impacted the commercial real estate market in many ways, including defaults on lease and loan payments by tenants and borrowers. Landlords and lenders seeking to evict or judicially foreclose on defaulting tenants and borrowers may be hampered in their efforts as a result of state and local efforts to provide relief to financially stressed tenants and borrowers.
State Governors and state and local courts have issued orders that in varying degrees limit or prohibit the filing of new eviction and foreclosure actions and limit or prohibit execution of eviction orders and foreclosure sales in pending litigation. These limitations to evictions and foreclosures may incentivize landlords and lenders to give tenants and borrowers breathing room and encourage negotiation rather than litigation in courts with full dockets and minimal staff.
Faced with such limitations to judicial remedies, landlords and lenders may find grace periods, payment deferrals and forbearances more palatable than they might otherwise, giving tenants and borrowers more time and flexibility to recover from the financial impact of the pandemic. As a result, these limitations on judicial remedies for lease and loan defaults can be viewed as another way of “kicking the can down the road,” similar to what we saw in the Great Recession.
Click the image to the right for a state-by-state table showing what eviction and foreclosure moratoriums have been enacted so far.
The McDonald Hopkins Real Estate Recovery Team is staying up to date on the rapidly developing opportunities for real estate owners, lenders and tenants during this difficult time.
If your real estate is impacted by the massive dislocations caused by this economic shutdown, and you would like to know how we can help you with your real estate or any federal or state relief program for real estate, please reach out to any of the attorneys listed below: