Eviction and Foreclosure Moratorium Extended by President Biden

Prospective clients sometimes ask me will I be evicted if I cannot pay my rent? This is a serious problem in Orlando because the pandemic is seriously hurting people right now.

During the COVID-19 pandemic, many people have found themselves facing financial struggles they never anticipated. Nearly a year later, many still struggle to meet basic needs. Relief measures that were passed by Congress and the previous administration were set to expire at the end of February have recently been extended. This includes the ban or moratorium on foreclosures and evictions.

One of the many executive orders signed by the president shortly after being inaugurated included an order to the Centers for Disease Control and Prevention (CDC) to extend the nationwide ban on evictions through March 2021.

President Biden also extended the moratorium on foreclosures and any government-backed mortgages, including USDA, VA, and HUD mortgages. The executive order allows homeowners to apply for mortgage forbearance, if needed.

According to the Census Bureau, 20 percent of American households are behind on rent. Unemployment remains high due to the ongoing affects of COVID-19.

The federal eviction moratorium was enacted in September 2020 as a way to help people stay in their homes during business shutdowns and economic hardships caused by the pandemic. While the CDC ban covers most renters, it does not cover everyone.

The federal ban covers renters earning less than $99,000 annually or $198,000 jointly. Renters must show they have suffered a substantial loss of income, that they have made good faith efforts to pay for partial or full rent, or they applied for rental assistance to pay rent, and that they would otherwise be homeless if they were evicted. Renters must also show that they would still plan to pay rent or even partial rent if they could afford it. To qualify, the renter must sign a declaration and provide it to the landlord.

One important factor to keep in mind is if a person does qualify for the eviction moratorium, the solution is a temporary one. Rent will not be canceled or waived during the moratorium.

However, landlords will not be able to evict tenants during this time.

If you have questions on this topic or are struggling with debt, call us today to schedule a free consultation. The Benenati Law Firm has eliminated nearly a billion dollars of debt for its bankruptcy clients, making the firm one of the top twenty filers of bankruptcy in the nation. We have helped thousands of individuals and families eliminate their debt and get a fresh start financially. The day you hire our firm, we will contact your creditors to stop the harassment and collection calls. We make our hours convenient for our clients and offer digital sign-ups and free consultations on Saturdays (9:00 a.m. – 3:00 p.m.) and throughout the week until 5:00 p.m. If you are in a financial crisis and considering filing for bankruptcy, contact an experienced Orlando bankruptcy attorney who can advise you of all of your options.