Statement

Coalition of Legal Organizations and Community Groups Calls for a Moratorium on Foreclosures and Evictions in Michigan Due to COVID-19 Crisis

Argues that existing executive orders from Governor are not enough

***Media Advisory***

Contacts: Joe McGuire, Detroit Justice Center

jmcguire@detroitjustice.org; (313) 969-7076

MICHIGAN – A coalition of legal organizations and community groups has issued a public statement calling for a broad moratorium on foreclosures and evictions due to the ongoing public health crisis created by the COVID-19 pandemic.

Though Govern Whitmer has issued executive orders extending the redemption period for property tax foreclosures and halting most residential evictions in Michigan through April 17, the coalition argues in its statement that further measures are necessary to preserve public health and housing security in Michigan.

“It is an entirely foreseeable and understandable consequence that as a result of this crisis, many in Michigan will struggle to meet their financial obligations through no fault of their own. They should not then face eviction or foreclosure in the midst or in the immediate aftermath of a pandemic” reads a portion of the statement, which is signed by groups such as Detroit Justice Center, United Community Housing Coalition, Michigan Legal Services, and We The People of Detroit. 

The statement calls on Governor Whitmer and the Michigan Supreme Court to sign an order that implements five emergency policies: “1) Immediately extend the current moratorium on residential evictions until at least 60 days after the end of Michigan’s state of emergency, 2) Impose a moratorium on all mortgage and property tax foreclosures, as well as land contract forfeitures and foreclosures until 60 days after the end of the state of emergency, 3) Suspend mortgage, land contract and rent payments for residential housing for the remainder of the state of emergency and institute strong legal penalties for lenders, vendors, and landlords who do not comply, 4) Suspend or toll all redemption periods or legal deadlines that could lead to someone losing their home until 60 days after the end of the state of emergency, and 5) Allow people until at least 60 days after the end of the state of emergency to cure any delinquency in rent, mortgage or land contract installments for residential housing, before they face eviction, foreclosure or forfeiture. If the person became delinquent as a result of actual hardship, no late fees should apply.”

The statement ends: “States and municipalities across the country are already taking unprecedented measures to protect the health and well-being of their residents in this time of crisis. Governor Gretchen Whitmer and Michigan’s Supreme Court absolutely has the power in this emergency to act now and do what is necessary to preserve public health and housing security in Michigan, and the dire circumstances now faced by Michigan residents demand it.”

What: Public statement calling for a moratorium on foreclosures and evictions in Michigan due to the COVID-19 crisis

WHO: Detroit Justice Center and a coalition of legal organizations, nonprofits, and community groups

When: Wednesday, March 25, 2020

Where: The State of Michigan

###

Due to the unprecedented dangers to public health and housing security faced by our state as a result of the COVID-19 crisis, we are calling on Governor Gretchen Whitmer and the Michigan Supreme Court to sign an order providing the following: 

1. Immediately extend the current moratorium on residential evictions until at least 60 days after the end of Michigan’s state of emergency, 

2. Impose a moratorium on all mortgage and property tax foreclosures, as well as land contract forfeitures and foreclosures until 60 days after the end of the state of emergency,

3. Suspend mortgage, land contract and rent payments for residential housing for the remainder of the state of emergency and institute strong legal penalties for lenders, vendors, and landlords who do not comply,

4. Suspend or toll all redemption periods or legal deadlines that could lead to someone losing their home until 60 days after the end of the state of emergency, and

5. Allow people until at least 60 days after the end of the state of emergency to cure any delinquency in rent, mortgage or land contract installments for residential housing, before they face eviction, foreclosure or forfeiture. If the person became delinquent as a result of actual hardship, no late fees should apply 

Governor Whitmer has already signed executive orders extending the redemption period for property tax foreclosures and halting residential evictions through April 17, 2020. These orders were appreciated and necessary as initial steps, but the rapidly increasing scope and urgency of this crisis has shown that much more is needed to preserve public health and prevent thousands of Michiganders from becoming homeless. 

The dramatic and unprecedented economic effects of this crisis are already being felt by residents across Michigan. Workplaces are being closed and jobs are being eliminated on a scale not seen since the Great Depression. It is an entirely foreseeable and understandable consequence that as a result of this crisis, many in Michigan will struggle to meet their financial obligations through no fault of their own. They should not then face eviction or foreclosure in the midst or in the immediate aftermath of a pandemic.

Allowing courts to conduct evictions and foreclosures would exacerbate an already-growing public health crisis. Residents should not have to decide between exposing themselves to crowded courtrooms or having a default judgment entered against them and losing their homes. Michiganders should not be forced to lose or change their residences at a time when experts are advising all to stay home as much as possible. 

States and municipalities across the country are already taking unprecedented measures to protect the health and well-being of their residents in this time of crisis. Governor Gretchen Whitmer and Michigan’s Supreme Court absolutely has the power in this emergency to act now and do what is necessary to preserve public health and housing security in Michigan, and the dire circumstances now faced by Michigan residents demand it.

Detroit Justice Center

United Community Housing Coalition

Michigan Legal Services

Detroit Eviction Defense

We The People of Detroit

Detroit People’s Platform

Moratorium Now!

NetGen Michigan

Souladarity

Allied Media

Michigan Student Power Network