Does Covid Relief Act Protect from Foreclosure and/or Eviction?
Covid Cares - Foreclosure Relief Eviction Relief - Or Not?
This week I saw a property come back on the market after it was under agreement. It was a property that some of our buyers had an earlier agreement in place to buy. The property is for sale as a "flip" by an experienced foreclosure buyer. The buyers we were representing found their home inspection had to many issues so they did not buy the property.
When I saw the property on the market again, I called the agent to see why the property came back on the market with the next buyers. The agent stated that a title issue caused the buyers to rescind the agreement this time. When I got the agent talking, they stated that the second buyers' attorney had the opinion that the past owners probably should have been, or could have been, protected by the Covid Cares Act.
In the buyers' attorney's opinion, there is an untested possibility that the Covid Cares Act protects owners from foreclosure and eviction. With this information, the buyers decided they did not want to be the test case.
In reading the info on the Covid Cares Act protections, I couldn't find anything stating that the protections have lapsed. If I were a buyer and my attorney's opinion was as above, that would make me consider the cost of a legal test, the time and stress that goes with it, and the worry until a resolution was arrived at. If you're looking at foreclosed property, you may want to add a new box on the check list: Were the previous owners protected by the Covid Cares Act? And if you're listing a foreclosed property it might be a good question to ask, too.
What we know is good to know !
Best wishes, Heath & Holly
Heath Coker, Associate Broker
508-548-8888 c (Android) / 508-274-5613 c (Apple) / 508-540-9800
Holly Coker, Senior Sales Associate, 508-274-5612 / 508-540-9800
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