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The Judicial Council made some big changes with its vote two weeks ago to end some of its emergency orders that were put in place in reaction to the COVID-19 pandemic. In light of that, we thought now would be a good time to give you an update on the current status of foreclosures and evictions. Governor Newsom was the first to take action through Executive Order N-28-20. Among other things, it requested financial institutions holding commercial or residential mortgages to implement a moratorium on all foreclosure proceedings if they were caused by COVID-19. Many financial institutions have agreed to suspend residential foreclosures. At the present time Executive Order N-28-20, as extended, remains in place until September 30th. Next, on March 27, 2020, Governor Newsome issued Executive Order N-38-20 which authorized the Judicial Council to make emergency rules to maintain the safe and orderly operation of the courts. Under that authority, the Judicial Council voted on April 6, to adopt a rule staying residential and commercial judicial foreclosures until 90 days after the governor ends the state of emergency related to COVID-19. This was done with the expectation that legislation to address these statutory issues would follow quickly once the Legislature reconvened. At its meeting on April 6, 2020, the Judicial Council adopted an emergency court rule that effectively stopped all evictions, other than those necessary to protect public health and safety, for the duration of the COVID‐19 emergency. The rule was applicable to all courts and to all eviction cases, whether they are based on a tenant’s missed rent payment or another reason. This rule curtailed evictions by prohibiting a court from issuing a summons for unlawful detainer unless the eviction was necessary to protect the public health or safety. The emergency rule promulgated by the Judicial Council on April 6, was set to remain in effect until 90 days after the Governor lifts the state of emergency related to the COVID‐19 pandemic, or until would be amended or repealed by the Judicial Council. Additionally, the April 6 court rule prohibited a court from entering a default judgment against the tenant because the tenant failed to file a response, unless the court finds on the record the eviction was necessary to protect public health and safety. On August 13, 2020, the Judicial Council voted 19-1 to end Emergency Rule 1 and 2 on September 1st. Chief Justice Cantil-Sakauye said “The judicial branch cannot usurp the responsibility of the other two branches on a long-term basis to deal with the myriad impacts of the pandemic. The duty of the judicial branch is to resolve disputes under the law and not to legislate. I urge our sister branches to act expeditiously to resolve this looming crisis.” There are two main pieces of legislation that are making their way through the Assembly. The first, AB 1436, would enact the Small Landlord and Homeowner Relief Act of 2020. It would authorize a borrower to request forbearance of their mortgage payments from the bill’s operative date and either 90 days after the termination of the COVID-19 state of emergency or April 1, 2021, whichever occurs first. If certain requirements are met, the lender would be required to provide the forbearance to the borrower. Additionally, AB 1436 would prevent tenants impacted by COVID-19 from being evicted due to unpaid rent accrued from the start of the COVID-19 state of emergency until 90 days after the State of Emergency has ended or April 1, 2021, whichever happens first. The bill further provides a twelve-month grace period after the state of emergency ends or as of April 1, 2021, whichever occurs first, for tenants to repay missed rents without negative effect on their credit. The second bill is AB 828. It would prohibit a lender or their agent from submitting a notice of default, notice of sale or a trustee’s deed to a county recorder for residential real properties until 91 days after the end of the after the COVID-9 state of emergency is ended. Addressing judicial foreclosures, this bill would stay any action for foreclosure on a mortgage or deed of trust of residential real property unless the court finds that the action is required to further public health and safety. It would also extend the period for exercising rights, including right of redemption, until 90 days after the COVID-9 state of emergency ends. This bill, if passed, will also prohibit a landlord to from submitting for filing a residential unlawful complaint and prohibiting the court to issue summons on a complaint for a residential unlawful detainer unless the Court finds it necessary to address damage to the property, nuisance, or health and safety. Currently, non-judicial foreclosures do not appear to be prohibited and it does not appear that owners of non-residential property are going to be granted relief in the upcoming legislature. Just like foreclosures, the Judicial Council of California amended the April 6 court rule by lifting the ban on evictions. Starting from September 1, 2020, the Courts will begin issuing summons for the eviction cases. The new rule appears to leave the decision to issue summons to the counties. Although the Judicial council lifted the ban on issuing summons, in certain locales, evictions will not take place until after September 30, 2020, at the earliest under Executive Order N-71-20. This Executive Order allows local governments, such as county or a city to issue its own moratorium to stop evictions up to September 30, 2020. There have been many questions from clients regarding whether they can file a lawsuit for non-payment of rent during the pandemic. The answer to that is complicated as it depends on county to county and in some cases city to city because of the different moratoriums and eviction ordinances in place. For example, the City and County of Sacramento follows the Executive Order N-71-20 extending eviction bans until September 30, 2020. It remains unclear what the filing of an unlawful detainer action will look like after September 1, 2020. Currently, it will be left to the discretion of local jurisdictions, what, if any moratoriums will be placed on evictions at the local level. This will require landlords to navigate multiple ordinances and codes to determine to viability of an eviction proceeding. However, there is still time for the legislative branch to act at a state level regarding eviction moratorium and as discussed above, there are a couple different bills working their way through the legislative process. The information presented in this Article is not to be taken as legal advice. Every person’s situation is different. If you are facing a legal issue of any kind, get competent legal advice in your State immediately so that you can determine your best options. (Contributing Author BPE Law Group)