Lawmakers should work fast on eviction response

A wave of foreclosure and eviction filings have been growing during the coronavirus pandemic. Currently, there are moratoriums on judicial action on most foreclosures and evictions which keeps them from being processed.

These moratoriums have helped keep families and businesses from being evicted. But the backlog is growing. Sooner or later when the moratoriums end, the pending foreclosures and evictions will be processed, and the impact could be devastating unless something changes.

At the state level, Gov. Larry Hogan has issued several emergency orders regarding foreclosures and evictions. The most recent was issued on Dec. 17. It extends the prohibition on certain repossessions and residential and commercial evictions, as well as a forbearance process for residential foreclosures, until the end of the state of emergency. These moratoriums have been crucial for protecting people during the COVID pandemic. But that doesn’t mean the underlying problems have gone away.

My office in the Circuit Court handles foreclosures, while evictions are usually the domain of the District Court. The growing number of foreclosures that I see has me more than a little concerned. During normal times, our office would handle an average of about 60 to 65 foreclosures each week. Since the moratoriums went into effect, we have been prohibited from sending most of them forward for adjudication.

As I write this, my office is holding about 500 foreclosure cases just for our county alone. That number will keep growing every week the moratoriums continue in effect. And if you add in the number of cases from the other 23 counties in Maryland, and the evictions pending in the District Courts, you get an idea of the growing nature of the situation.

If the moratoriums end all at once, without planning, the impact could overwhelm the resources of existing aid organizations. There are local governmental and private aid organizations across Maryland that can assist displaced families and individuals. There is assistance for paying back rent or other types of emergency housing assistance, including shelter.

More information is available on the Anne Arundel County website. But it is doubtful that existing resources for aid would be capable of handling a wave of foreclosures and evictions. When the state of emergency ends there might be a year or two years’ worth of foreclosures hitting simultaneously.

Also, while the moratorium protects those facing foreclosure or eviction, it does not help the property owners and lenders who are likewise being hurt. There is no moratorium on the mortgage and bills they need to pay.

I do not envy the lawmakers who are wrestling with this growing problem. In the short term, a solution could be to keep extending the moratoriums. This would give families and individuals who are behind in their payments more time to get back on their feet or make other arrangements without fear of suddenly becoming homeless. But this also will continue to hurt the property owners and lenders.

In my opinion, a better solution would be something like the “Housing Justice Package” recently proposed by a group of lawmakers for the 2021 legislative session. The package includes relief for tenants and homeowners, reform of the current eviction system, and would also provide financial relief for landlords through a statewide program that would match local eviction prevention funding. Increasing funding for these local targeted relief programs will help tenants and property owners alike and is a more effective way of addressing the underlying problems.

For the lawmakers, all I can say is work fast. The clock is ticking on the current moratorium, the problem is growing, and the impact of doing nothing could be devastating.