Page 18 - Sonoma County Gazette May 2020

Eviction Ban Demystified: Resources for Landlords & Tenants
By Mary K. Piasta, Esq., Haeuser Valluzzo & Piasta LLP
In response to the pandemic, various governmental bodies have acted to
provide protections for residential and commercial tenants. There is a broad eviction moratorium in effect throughout the state as the Judicial Council of California issued an emergency rule effectively prohibiting evictions for 90 days after the lifting of the Shelter in Place requirements.
Want some Super Nice News?
We could all use a little bit of good news right about now, so I am going to focus on all of the positive things about real estate today. There have been considerable challenges, but we keep putting families into homes.
We have not stopped lending.
By way of background, California Governor Gavin Newsom issued a COVID-19 Eviction Defense Ordinance formally referred to as Executive Order N-28-20. While the Sonoma County Board of Supervisors agreed with Gov. Newsom’s executive order last month to limit residential tenants from evictions due to economic impact of COVID-19, his gubernatorial power is limited. Then the Judicial Council issued its sweeping order.
Real Estate was not listed as “essential” in the beginning of this shelter- in-place mandate but mortgage was considered essential so we closed the loans on the escrows in process and of course the Realtors were working right alongside us (virtually) to make sure their clients were taken care of. We were all working from home and that was a big adjustment because ours is a very personal business. It is hard not to meet a client face-to-face or attend a closing and see the joy on their faces as they get the keys.
Meanwhile, the Governor has requested banks and lenders within the State of California place a halt on foreclosures and evictions as well as that the CA Dept. of Business Oversight seek ways to work with financial institutions to look at possible alternatives to foreclosure and evictions.
With the current landscape now is an important time for both landlords and tenants to understand their options. Some think it might be wise for property owners/landlords to reach out to tenants to understand their position to stay ahead of any concerns.
The good news is that we can safely help clients get into their homes and we continue to do so today.
As leases are at their very core contracts, there are many creative options available to work out a resolution for both parties. Deferred rental payments and extending the length of occupancy are frequently used as a common solution. In the case where a tenant desires to move, transparency with the landlord can help to find a mutually beneficial arrangement.
Real Estate is now listed as essential, but it is a little trickier to sell or buy a home right now. There will be no Open Houses, Realtor meetings are virtual, and we are discussing what we can do and how we should be doing things to maintain the safety or our clients and the general public.
Tenants having difficulties paying rent should know there are abundant resources available at this time. Also, having in place a loss mitigation plan, is recommended such as extended payment procedures, etc.
We continue to help people refinance with historically low rates and my company rolled out Hybrid eClosings in early April. This will streamline the closing process and shorten the face-to-face meeting with a notary from 60 minutes to 15 minutes. Signing documents electronically is easy and we have been doing that for a decade. We are mostly paperless as an industry but the final closing documents have always been hand-signed to meet the demands of Fannie Mae and Freddie Mac and local government. We simply pushed until we got the OK to have 80% of the documents eSigned.
Whether fostered by gubernatorial administration or county supervisors, this delay is only temporary. At their meeting this past March, the Sonoma County Board of Supervisors also set the date of June 2, 2020 to review the Ordinance to consider additional data and information about the availability of other assistance programs and community needs.
We can utilize drive-by appraisals again and we also have ways to eliminate appraisals altogether today. This has cut down on appraiser visits to homes. When appraisers do visit homes in person, many safeguards have been put in place and this is still evolving as well.
To clarify, landlords have no obligation to forego rent —many are working with their tenants to reach a solution to get through this time together.
RESOURCES FOR LANDLORDS/PROPERTY OWNERS:
Relief for landlords is available in the form of payment relief on mortgages, property tax penalty waivers. With respect to mortgage relief the terms of such relief need to be understood as some companies are offering it with balloon payments owing at the end of the short forbearance term.
• California Apartment Association has a well thought out guide with resources:
Every business in America has been affected and we have all had to get extremely creative in order to serve our clients and survive.
caanet.org/coronavirus-resources-for-navigating-the-outbreak/
• Fannie Mae & Freddie Mac is also resource: freddiemac.com/about/covid-19.html
I believe that we need to think outside the box and that new business models will emerge, and we can thrive. We must acknowledge that this will be an endurance race and not a sprint. The sooner we realize this, the easier it will be to adapt.
Property tax late payment waivers are in some cases decided on a case by case basis and it is advisable to also reach out to local electeds to advocate on behalf
of such an application. For those who need assistance with paying taxes help is available thru Community Action Partnership of Sonoma and United Way of Wine Country, see unitedwaywinecountry.org or, call: 707 528 - 4485.
I tend to focus on the stories of hope and support and that gives me strength to continue to serve my community in the best way I can. Right now, I am extremely proud that we have been serving our local medical heroes alongside police, firefighters, military and educational heroes as well at www. SonomaHero.com
RESOURCES FOR TENANTS:
Season of Sharing and Community Action Partnership of Sonoma is accepting applications for assistance (with rent and loss of income) until June 30. While SOS and others are working to help those in need, they strongly recommend that tenants/ renters keep up on payments as much as possible.
Sonoma County is full of everyday heroes too.
Season of Sharing: seasonofsharing.org/covid19/
Community of Action Partnershipt: capsonoma.org or call: 707 544-6911.
For help with paying of bills such as utilities, The Salvation Army of Santa Rosa
There are people making masks for free to anyone who asks. Others delivering meals to the heroes mentioned above. Now is the time to come together and take care of one another and just be super nice to each other.
is accepting applications by appointment only. Those applying must provide in writing to their landlord a declaration of why they can’t pay rent. Even if applicants receive help, it is not a guarantee that the applicant (s) will be safeguarded from eviction proceedings. Call 707 542-0981. • calmatters.org/housing/2020/03/california- coronavirus-covid-19-evictions-newsom-pandemic-renter-landlord/ • gov.ca.gov/ wp-content/uploads/2020/03/3.16.20-Executive-Order.pdf
Need to know more? Please send me your real estate and mortgage related questions. I am happy to answer you and it may become the topic of a future article.
Hans Bruhner (NMLS 243484) is a Mortgage Advisor for Finance of America Mortgage (NMLS 1071). Both are licensed by the Department of Business Oversight under the CRMLA. If you have a question, please contact Hans at (707) 887-1275 or hans@hansblog.com
18 - www.sonomacountygazette.com - 5/20