New Mexico Sets Rules To Start Pandemic Debt Collection | National policy
Supreme Court Chief Justice Michael E. Vigil has acknowledged that an increase in foreclosure and consumer debt cases is expected as pandemic protections begin to expire – but he noted that the situation shouldn’t be overwhelming.
“We have reached a point in the COVID-19 pandemic where courts can normally handle consumer debt cases and foreclosures in a fair and orderly manner,” Vigil said in a statement.
A statewide moratorium remains in place on evictions indefinitely for people unable to pay their rent and a new national moratorium on most evictions was released by the Centers for Disease Control and Prevention on Tuesday. It is expected to last until October 3.
Over the weekend, the U.S. government lifted an order that barred banks across the country from foreclosing on homes, potentially putting thousands of families at risk.
According to the Mortgage Bankers Association, about 1.75 million homeowners – about 3.5% of all homes – have some sort of forbearance plan with their banks. It is not known how many New Mexico homeowners are forborne.
The magnitude of the potential problem is much smaller than it was during the Great Recession, when around 10 million homeowners lost their homes following the bursting of the housing bubble in 2008.
A limited number of single-family home owners in the United States still fall under an eviction moratorium that was extended until September 30 by the Federal Housing Administration.