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Wednesday, March 18, 2020

Speaking your debts into oblivion

Today the Governor suspended all evictions and foreclosures in the state of Louisiana.
BATON ROUGE — Gov. John Bel Edwards suspended foreclosures and evictions Wednesday as two more coronavirus deaths were reported and cases spiked to more than 250 as Louisiana emerges as a national hotspot for infections.

Edwards said he was issuing his "most urgent plea" yet to follow practices to stem the spread of the disease like social distancing, sanitizing and avoiding large groups of people.

"We have two weeks to minimize the spread," Edwards said. "We don't want to look like Italy in two weeks (where the pandemic has crippled the country)."

But Edwards warned: "Things are going to get much worse before they get better" because of an increase in testing. "You are going to see the number of cases jump dramatically over the next 48 to 72 hours."
Oh yeah, also the virus news is bad.  But I'm more interested in this foreclosure suspension right now.  Earlier in the week, we saw the city small claims courts announce they weren't going to hear any eviction cases until the end of April. (We'll see about that when we get there.)  I suppose the Governor's order could confirm and extend that action as well.  What does the order actually say? Is it just a verbal decree?

On the foreclosure side, there are several points at which he could intervene. He could order a halt to court proceedings or he could shut down the sheriffs' repo sales or both.  Also how long is the order in place? Hopefully it goes past just next month. If you have an FHA loan, you are protected for 60 days now.  But that also will probably have to be extended. If they're going to bring the hammer right back down on people as soon as they can, they may as well wait until they get their $2000 first.

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