Blog
Scott & Corley: South Carolina Updates
On March 19, 2020, I ordered courts to reschedule evictions and delay foreclosure proceedings through May 1, 2020. I issued this order understanding the negative impact the COVID-19 pandemic may have on institutions and individuals, and on the basis that increased housing insecurity and homelessness would worsen the threat posed by the illness.
Statement on Evictions and Foreclosures from Chief Justice Beatty
On March 19, 2020, I ordered courts to reschedule evictions and delay foreclosure proceedings through May 1, 2020. I issued this order understanding the negative impact the COVID-19 pandemic may have on institutions and individuals, and on the basis that increased housing insecurity and homelessness would worsen the threat posed by the illness.
It has come to my attention that some people are taking advantage of this devastating crisis by declining to make rent or mortgage payments. I want to remind people who are able to pay their rents and mortgages that they should continue to make their payments. My order did not relieve people of their personal responsibilities or financial obligations.
As of now, the moratorium on evictions and foreclosures is scheduled to end on May 1, 2020, and at that time any evictions or foreclosures may proceed. As we all work together to fight the spread of COVID-19, I will continue to monitor conditions and consider how to address evictions and foreclosure proceedings during this public health emergency.
OFFICIAL STATEMENT LINK
UPDATE: As an update to our recent Eblast this morning, the Chief Justice of the South Carolina Supreme Court has issued two (2) Administrative Orders today. Both Administrative Orders are included in the below hyperlinks. The Chief Justice has ordered that all previously scheduled terms of court (in all South Carolina courts) from March 23, 2020 through May 1, 2020 be canceled. Additionally and in line with the other Order, the Chief Justice has also issued a moratorium in Master-in-Equity courts statewide on foreclosure hearings, foreclosure sales, writs of assistance, and writs of ejectment. The Order does, however, allow for case-by-case exceptions for evictions pertaining to matters that involve essential services and/or harm to person or property.
Most importantly and interpretatively as well as where allowed by mortgage investor or insurer (as discussed in further detail in our previous Eblast below and in the links herein), all new foreclosure referrals, first legals, service of process, etc. may proceed without further interruption.
Chief Justice Admin Order 03-18-01
Chief Justice Admin Order 03-18-02
FNMA
FHLMC
HUD
US BKY Court
On March 18, 2020, the United States Department of Housing and Urban Development (HUD) announced that they have issued an immediate foreclosure and eviction moratorium for 60 days on single-family homes with FHA-insured mortgages. However and most importantly, Fannie Mae and Freddie Mac later announced that only foreclosure sales and evictions are suspended for 60 days, and therefore, interpretatively, all new referrals and on-going proceedings may proceed in compliance with investor time guidelines, other than for foreclosure sales and evictions. Therefore, singularly FHA-insured mortgage loans appear to be the only loans affected by a 60-day moratorium on all foreclosure and eviction actions. Attached below are hyperlinks with the Fannie Mae, Freddie Mac, and HUD instructions.
Additionally, the United States Bankruptcy Court, District of South Carolina, is proceeding with all cases, provided that hearings scheduled to occur before April 30, 2020, may be conducted by telephone or videoconference. The United States Bankruptcy Court Operating Order 20-03 (In Re: Bankruptcy Court Operations In Response to COVID-19), filed on March 17, 2020.