Moratoria on Residential Foreclosures and Evictions

On March 18, 2020, President Trump directed the U.S. Department of Housing and Urban Development (HUD) to suspend foreclosures and evictions due to the COVID-19 pandemic. HUD and the Federal Housing Finance Agency (FHFA) have since clarified that the effect of the moratoria is limited to residential single-family mortgages insured by FHA or backed by Fannie Mae or Freddie Mac. Commercial loans, commercial leases and multi-family (apartment) leases are unaffected by these moratoria, which are in effect for 60 days.

On March 19, 2020, Indiana Governor Holcomb issued Executive Order 20-06 temporarily prohibiting the initiation of evictions and foreclosures of residential real estate or property in the state of Indiana. These prohibitions will be in effect until at least April 5, 2020 and are likely to be extended. The eviction prohibition applies to all residential real estate and property in Indiana, including multi-family (apartment) projects and single-family residences. Commercial properties (e.g. multi-family apartment projects and other residential real estate that are not occupied by the owner) are not expected to benefit from the foreclosure prohibition. While the Order expressly references initiation of actions or proceedings, certain counties are citing the Order to postpone pending eviction proceedings as well.      
 
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This publication is intended for general information purposes only and does not and is not intended to constitute legal advice. The reader should consult with legal counsel to determine how laws or decisions discussed herein apply to the reader’s specific circumstances.