Reed Smith Client Alerts

As provided in our previous Alerts, individual states continue to issue policies and orders to relieve their residents concerning foreclosure and eviction. We have included a comprehensive spreadsheet capturing the current legislation, orders, and policies on forbearance, foreclosures, evictions, and extension of statutes of limitation.

Authors: Diane A. Bettino Jonathan L. Levin Greyson K. Van Dyke Natsayi Mawere

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Since our last update in Bulletin #2, the following states have issued additional policies and Orders:

Alabama: On April 3, 2020 Governor Kay Ivey signed a Proclamation suspending the enforcement of any judgment issued as a result of a foreclosure or eviction action. Nothing provided in the Proclamation should be construed as relieving any individual from their obligation to pay rent, make mortgage payments, or comply with any obligation under a mortgage or rental agreement.

Unless otherwise provided, the above-referenced suspension shall remain in effect for the duration of the Alabama Public Health Emergency.

California: Effective April 6, 2020, California’s Judicial Council approved eleven temporary Emergency Court Rules in response to the COVID-19 outbreak. Specifically, Emergency Court Rule No. 2 provides that until 90 days after the lift of the State of Emergency, all judicial foreclosures on mortgages, deeds, or trusts are stayed, and the court may take no action and issue no decision unless the court finds that action is required to further public health and safety. Further, the Rule No. 2 tolls any statute of limitation relating to the filing of such foreclosure action and extends the period of time in which a party may assert certain rights in response to a foreclosure, including exercising the right of redemption from a foreclosure sale.