Evictions, Foreclosures and Covid, Oh My!

The big Covid Financial news is that the US Centers for Disease Control (CDC)’s eviction moratorium ended on July 31st.  The CDC moratorium became a safety net for many, and overrode many state laws.  If you are a renter, and you are behind in your rent, what will happen now?

Depending on the state you live in, evictions may start as soon as August 2nd.  In Illinois, the eviction ban will last another month, until August 31st.  If you are behind in your rent, now is the time to be sure you have worked out your problems directly with your landlord.  In Chicago, landlords will be required to show proof that they tried to work out an agreement during the 2 months after the ban is lifted.

And, talk with your landlord about State of Illinois grants for the Illinois Rental Payment Program.  Although the first two rounds of funding closed, they expect to open another round of assistance in the Fall of 2021.

See:  https://housingactionil.org/blog/2021/07/20/federally-funded-emergency-rental-assistance-programs-for-2021/ for more information.

Foreclosures can start on residential properties in Illinois after August 21, 2021.  But, the Federal Housing Administration just announced an extension of the moratorium on foreclosure-related evictions though September 30, 2021


This means that even if the State allows foreclosures, and they can be completed, the lenders still won’t be able to evict anyone until after September 30th.

Many homeowners have used, and lenders have granted Covid Forbearances.  In many cases, the lender allowed people to defer the missed payments to the end of their loan. But, in some cases, the missed payments may still be due after the forbearance is over.

In many cases, people may try to sell their home, but a large percentage of people won’t have enough equity in their home to sell.

Bottom line, be sure to be in touch with your landlord if you are a renter, to be sure that you have come to an agreement on how you’ll catch up if you are behind.  And, if you are a homeowner, be sure that any forbearance will put the missed payments at the end of your loan.

If you are unsure of what is happening in your situation, call us, and we can help.  In the next few months, courts will be processing an increasing number of foreclosures and evictions.  You need to prepare yourself, and know your rights.

Daniel J. Winter