March 16, 2020
It is no secret that there will be significant downline effects from the business closings, layoffs, and loss of income as a result of the coronovirus. Governor Cuomo of New York announced today that all restaurants, bars, and casinos in New York, and probably the tri-state area (New York, New Jersey and Connecticut) will be closing at 8:00 p.m. this evening. Thousands of employees who depend on income from tips will thus be experiencing financial issues, as will the owners of, investors in, and suppliers to restaurants, bars, and casinos.
We have thus been advised to expect a spike/increase in notices of default and foreclosure threats and filings to occur within the next 30-60 days. Fortunately, the effects of the virus do not, at least at this point, appear to be as extreme as the financial meltdown of 2008, but sources advise that the worst is not over and in any event, the downline effects from even a 30-day shutdown of businesses will have multiple ripple effects on the lives of homeowners in connection with their mortgage loans.
Reuters news agency announced yesterday that the Federal Open Market Committee directed the Open Market Trading Desk to increase holdings of mortgage-backed securities by at least $200 Billion beginning today. Homeowners may thus be receiving communications that they loan has been sold and/or that their servicer is changing.
We will be emphasizing efforts to try to help homeowners negotiate a resolution to any default or threats of foreclosure early on and without lengthy litigation. We have entered into a business relationship with Dr. Andre Larabie, a professional debt negotiator with over 25 years of experience who has handled and resolved debt claims all over the world. Our team will be working towards steering any threats of foreclosure into a resolution arena (e.g. Mediation) early on to help homeowners.
Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com