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07/10/2020
Governor Wolf Extends Prohibition on New Residential Foreclosure Filings to August 31
Client Alert
Written by: Michael J. Shavel and Jill M. Fein
On July 9, 2020, Governor Tom Wolf issued an executive order extending his previous prohibition on the filing of new residential mortgage foreclosure cases until August 31, 2020. Governor Wolf’s Order follows other agencies such as the U.S. Department of Housing and Urban Development (“HUD”) and the Federal Housing Finance Agency (“FHFA”) who have also extended their moratorium on single family residential foreclosures to August 31, 2020.
A significant factor leading to the July 9th Order stems from the Federal Coronavirus Aid, Relief and Economic Security (“CARES”) Act, which provides Pennsylvania with $175 million specifically marked to aid struggling renters and homeowners. The Pennsylvania Housing Finance Agency (“PHFA”) was tasked with developing a program for distributing the financial assistance, which did not become active until July 6, 2020. As such, Governor Wolf’s Order specifically states that the extension of the moratorium is based partly so that more Pennsylvanians can access these funds.
It is important to note that while Governor Wolf’s Order only applies to the filing of new residential foreclosure cases, some counties across the Commonwealth have interpreted the Order to apply to commercial matters as well. Additionally, some counties have used the Order to bar the filing of all pleadings on residential foreclosure cases, even those already in progress, including motions and judgments.
Hill Wallack’s attorneys are tracking the changes to the foreclosure landscape as they occur and are working to keep you up to date with the latest information. Contact one of Hill Wallack’s experienced foreclosure attorneys to learn more and discuss your options.
©2020 Hill Wallack LLP. All rights reserved. Please contact Hill Wallack for permission to reprint. Notice: The purpose of this Client Alert is to identify select developments that may be of interest to readers. The information contained herein is abridged and summarized from various sources, accuracy and completeness of which cannot be assured. This Client Alert should not be construed as legal advice or opinion, and is not a substitute for the advice of counsel.
