We are seeing light at the end of the tunnel and hope all of you have stayed healthy. I’m sure you are looking forward to our world returning to normal or at least closer to normal. The economy has been shut down in many sectors far longer than expected and sadly many of these businesses, large and small, will not survive. We are already seeing businesses filing for bankruptcy protection and anticipate many more filings in the future. It is also likely that we will see an increase in personal bankruptcies caused by job loss or other circumstances. Needless to say, there will be some rocky times ahead.
We are still able to record Notices of Default and Notices of Sale on all property types. Our auctioneers are conducting sales at this time but must adhere to any Shelter-in-Place or Stay Home orders which can limit the number of parties that can attend a sale. They provide the following risks for lender consideration:
• Chilling the bid – suppressing the number of bidders who can attend a sale as they aren`t considered essential businesses and would be prohibited from attending a sale.
• Exceeding the number of people that can gather or violating Stay in Shelter provisions.
• Reputational/media risk
• Litigation from any of the above including potential litigation from borrower.
In California, our legislators have introduced AB 2501 and AB 828 to delay foreclosures, evictions and create a new layer of modification requirements. As currently written, these bills would provide very liberal options for borrowers to delay making their mortgage payments for up to eighteen (18) months. Our trade groups are lobbying the legislators to amend the bills. I have attached copies of the bills and urge you to review them and contact your legislator to express your opinion.
Our office remains open and we are ready and able to assist our clients during this challenging time. Wishing you all good health during these turbulent times. Please do not hesitate to contact us if you have any questions at: support@mtglenderservices.com
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB2501
http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml?bill_id=201920200AB828
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