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COVID-19 Update, March 20, 2020

Marc Dann

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyWe don’t mean to be a pest with these updates, but information about mortgage and consumer issues that may impact our clients, former clients and friends is flowing at a fast and furious pace.

Before outlining the evolving responses to the financial hardship caused by the emergency, I want to take a moment to discuss the long-term effects of this emergency. The fact is the job losses, foreclosures, repossessions, and other types of financial stress caused by the crisis will negatively impact the health of millions of Americans years after the threat of contracting Covid-19 fades.

I know this true from both personal and professional experience. On the personal side, my father committed suicide after losing most of his retirement savings when the tech bubble burst in 2000. From a professional perspective, I worked alongside thousands of clients, including many of you, who faced serious financial, personal, and health challenges in the wake of the 2008 collapse of the housing market. I’m proud that we were able to overcome those challenges and forge a path back to financial security.

But as we confront the possibility that one in five Americans will be out of work for an extended period of time, the potential failure of millions of businesses, and growing insecurity about shrinking retirement savings, we must acknowledge the need to take steps to prevent a pandemic of depression, suicide and addiction among our family, friends and neighbors.

When I look back at the courage and optimism that enabled our clients to triumph over adversity in the past, I am confident we all have the capacity to find humor and optimism in situations that appear dire and hopeless. I want you to know that we are here to help and that it will be our privilege to serve you in the weeks, months, and years ahead.

But remember, we can’t help if you don’t call.

It’s especially important for you to contact us now because some information you may be receiving via traditional or social media is inaccurate or incomplete. We are at work and available to answer questions or help at 877-475-8100 or [email protected]. You are also welcome to call Marc’s cellphone: 330-651-3131

Information regarding Foreclosure Stays or Prohibitions

What is True:

Today the Federal Government announced that no foreclosures will proceed in the next 60 days on loans that are insured by the Federal Housing Administration (FHA) or that are owned by Freddie Mac or Fannie Mae. While that covers a lot of loans most people don’t know the name of the owner or insurer of their loan, they only know the name of the company that collects the payments or servicer of their loan.

Further complicating the implications of this order is the fact that in the last few years the FHA, Fannie and Freddie have sold off hundreds of thousands of loans that they formerly insured or owned and many of those homeowners might incorrectly think that this particular decision applies to their loans. If you don’t know who owns your loan and you are facing foreclosure in the next 60 days reach out to us or your loan servicer to find out for sure.

In addition, some Ohio Counties (including two of the largest Cuyahoga and Hamilton) and some states (including New Jersey) have passed laws or issued court orders staying foreclosure cases, sheriff’s sales and foreclosure related evictions for 60 days. These orders apply to all loans. Ohio Chief Justice Maureen O’Connor is scheduled to speak at the Governor’s news conference at 2 p.m. today and she may share further news for Ohioans facing foreclosure.

Also, Ohio Senator Sherrod Brown has introduced legislation under the Real Estate Settlement Procedures Act to prohibit all foreclosure activity nationwide, to allow up to a six-month forbearance (not forgiveness) followed by an extension of the loan and requiring servicers to evaluate the loan for a modification for those impacted. That law has not passed and has a long road ahead in the U.S. Congress.

If you have a pending foreclosure case anywhere, call us to verify the status of your individual case and discuss strategy for how to most effectively move forward toward a positive resolution for you and your family.

What is not true: 

No order or law that we are aware of (even those proposals discussed above) relieves mortgage loan borrowers, student loan borrowers or other consumer debtors from paying the debts or the payments that are due this month or in the future. Our advice about how to approach the situation if you can’t make payments is here. This patchwork of rules by state and local governments and courts will create an accounting nightmare as we recover from this crisis. Among other problems, a suspension of payments would throw escrow calculations off balance and cause increases in monthly payments down the road.  Pay close attention to your mortgage statements in the coming days and months and reach out to us for help or to your mortgage servicer in writing if you have questions or concerns.

Nothing in the law that we are aware of prohibits mortgage companies or other creditors from reporting missed payments, even those that may be allowed by law. Once again, Sherrod Brown has proposed a bill to put a moratorium on credit reporting but that bill is a long way from law.

The bottom line is: if you can pay your mortgage and other obligations try to do so. Many of our clients have very favorably modified loans with payments that are affordable. Those arrangements can be upended if escrow increases because of missed payments or the loan has to be modified again. Many others have worked hard after foreclosure or bankruptcy to raise their credit score. We all have to balance payment priorities at this time and we just wanted to make sure that you were as informed as possible.

Paid Sick Days are only for Some Workers

 What is True:

 A law has been passed to require companies to provide paid sick leave related to the COVID-19 virus to certain workers but millions of workers are exempted including those who work for companies with more than 500 employees and some companies with less than 50 employees. Here is a good summary of who gets it. Employers can recover costs later through tax credits.

More good news:

Fifth Third Bank will not foreclose, evict or repossess cars for 60 days. Read about it here.

No Utility Shutoffs in Ohio. Cleveland.com report. But remember you still owe the bill and at some point it is going to have to be paid.

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyAn important message from Marc Dann:

We are open and reachable during normal business hours and beyond and you can reach me on my cell phone at 330-651-3131. Rest assured that I will either be at home or at the office because like you, I’m really not allowed to go anywhere else.  We will be happy to answer any questions you have about your existing case(s) as well as the many coronavirus-related legal issues our friends and clients are facing on an almost hourly basis. If you need to speak to one of our attorneys please use our toll-free line 877-475-8100. We answer 24 hours a day.

Here are several things to remember:

  1.  We can arrange for phone and video conferences for new and existing clients.
  2. You can make retainer payments online. If you are a client of our Ohio office click here: DannLaw Payment Link  Clients of our New Jersey office click here: DannLaw NJ Payment Link
  3. If you are experiencing additional financial hardship related to the COVID-19 emergency and need to make financial arrangements please contact us right away.
  4. We are constantly monitoring legal developments related to the emergency that are important to consumers, borrowers, homeowners, and small businesses. If you have questions or need information please contact us and we will try to find answers for you.
  5. If you are unable to make your mortgage payment or pay other consumer debts please contact us so we can discuss options and alternative strategies. We can’t help you unless and until you contact us.
  6. If you are in Chapter 13 Bankruptcy and are unable to make a Chapter 13 Payment, please contact us ASAP so we can discuss options and alternative strategies.  Working preemptively with the Chapter 13 Trustee and the Court regarding payments will help avoid unnecessary Motions to Dismiss.
  7. For our clients in Chapter 13 Bankruptcy and all other clients: the COVID-19 emergency has not changed deadlines for filing tax returns.

Here are some other important developments:

  1. Ohioans can now apply for and receive unemployment benefits immediately if they are laid off due to the emergency. Click here for information about how to apply online for unemployment benefits.
  2. SBA Loans should be available to Small Business Owners facing financial challenges from the current situation. Click here to learn more.
  3. Judge Brendan Sheehan in Cuyahoga County has issued a 60 day stay on foreclosure sales and on the prosecution of foreclosure cases. See the details here. Please note that all deadlines that apply to those in foreclosure or who are working to resolve disputes with their mortgage companies remain in effect. Rules and regulations have not been adjusted. Lawsuits that have been filed and served must be answered. Any matter that needs to be objected to or appealed would not be covered by this order.  This is good news but please keep in close touch with us about your existing case or any issues you might learn about relating to your mortgage. If you have questions, please email Attorney Whitney Kaster at [email protected]. 
  4. While Cuyahoga County has stayed these cases, many other courts in Ohio have not. One of our Partners, Brian Flick in his role as Ohio Chairperson of the National Association of Consumer Attorneys wrote to Chief Justice Maureen O’Connor on March 16, 2020 asking that she issue guidance to local courts to stay all non-essential Debt Collection and Eviction Cases and to postpone all pending Sheriff’s sales until the State of Emergency Declaration is terminated. If you are in a County that has not adopted emergency procedures staying civil cases, please email [email protected]  He and NACA are committed to ensuring access and due process to all consumers during the pandemic.
  5. Both the Hamilton County Municipal Court and the Court of Common Pleas have issued a 30-day stay of all civil and criminal trials in the Courts (with limited exceptions).  See the details here. This is good news but please keep in close touch with us about an existing case or any issues you may learn of related to your case.  If you have questions, please email Brian Flick at [email protected].
  6. The New Jersey Legislature has enacted statewide mortgage relief including forbearance of payments and a stay on foreclosure proceedings. Here is what we know about it. The same disclaimer applies here:  Please note that all deadlines that apply to those in foreclosure or who are working to resolve disputes with their mortgage companies remain in effect. Rules and regulations have not been adjusted. Lawsuits that have been filed and served must be answered. Any matter that needs to be objected to or appealed is not covered by this order. Javier Merino stands ready to answer all of your New Jersey Consumer Law Questions [email protected]
  7. My earlier post on how to protect yourself if you experience financial hardship is here.
  8. The Ohio State Bar has advice on what your employer may and may not do.
  9. The Veterans Administration has directed servicers to not report to credit agencies or assess late fees to borrowers who are late as a result of the virus.For more information on that contact [email protected]

 

As always we stand ready to help our friends, neighbors and clients as this crisis unfolds. Never hesitate to call 877-475-8100 or email us at [email protected] or [email protected].

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Marc Dann - Marc Dann Consumer Fraud & Foreclosure Defense AttorneyWhen I woke up this morning to another stream of stories about the Coronavirus, I wasn’t worried about the impact the growing crisis was having on big banks or the stock market—as has been proved time and again, they’ll recover or be bailed out, or both.

Instead, I was concerned about the people reporters obsessed with Wall Street losses ignore:  people like the guy who was counting on catching up on his Christmas credit card charges by selling hot dogs at the NCAA tournament at Rocket Mortgage Fieldhouse, the Cleveland cop banking on overtime earned by working the St.Patricks Day parade to pay his daughter’s college tuition, and the self-employed vendors who eke out a living selling jewelry and crafts at kiosks during the Cleveland International Film Festival. I’m worried about them because there’s no bailout in the offing for the millions of retail clerks, waitresses, Uber drivers, and other hourly workers who lose billions of dollars in wages as the rest of us follow orders to engage in “social distancing.”

Along with living paycheck to paycheck, many of the workers I’ve described have no or inadequate health insurance. They don’t have paid sick leave. And many are saddled with crushing student loan debt, mortgage payments that consume nearly half their gross income, or are renters who will be evicted quickly if they miss their monthly rent payments.

At DannLaw, our experience helping consumers and homeowners recover from the Great Recession gives us a unique perspective and valuable insight on how people can avoid financial disaster as the coronavirus crisis spreads and what government should do to support working families.

Here is our best advice for individuals and families:

  1. Don’t put your head in the sand. As soon as you know you may not be able to pay one, some or all your bills contact your creditors, explain your situation, and ask for forbearance or other adjustments to your account. It is important for you to communicate with mortgage servicers, credit card companies, landlords and other creditors via letter or email. Make sure to keep copies of all correspondence because it will serve as a  permanent record of what you promise them and what they promise you.
  2. Closely review automatic payments being charged to your credit cards or bank accounts. Avoid costly bank fees and overdraft overcharges by canceling payments you aren’t sure you can make. One overdraft can cause a cascade of bounced checks resulting in hundreds of dollars in NSF charges and late fees that could have been avoided
  3. Don’t try to borrow your way out of the situation. You’re going to see lots of solicitations from “debt consolidation” companies and payday lenders. While these loans may provide short-term relief, their steep interest rates will cause long-term problems that will jeopardize your financial future. Working with existing creditors is a much more sensible and safe approach.
  4. Do not ignore anything delivered to you in person or by regular or certified mail from a court. If you do not respond to a summons or hearing notice you will soon be subject to wage garnishments, bank account attachments or judgment liens. Call a lawyer if you are sued even if you think you can’t afford one because there are often legal defenses to collection actions, evictions and foreclosures. Our firm and many others will provide free phone or in-person consultations. If an attorney finds that fee-shifting or counterclaims exist in your situation they may represent you on a contingency fee basis.
  5. Keep an eye on your credit report. Credit Karma and other free services will notify you immediately if a creditor reports you as delinquent or puts a claim in collection. You may be able to mitigate damage to your credit score by communicating with the creditor or placing an explanation of your situation in your credit report. Contact a lawyer right away if you find that someone is entering inaccurate information in your report. You may be entitled to protection and compensation under Federal Law.
  6. Avoid withdrawing funds from your retirement accounts. Withdrawals will cause tax consequences that you may regret the following year and they are often the only assets people have that are exempt from collection efforts.

Now let’s turn to what government can do to support and protect hourly and self-employed workers:

  1. Suspend the obligation to pay government student loans. Offer immediate forbearance with no accruing interest. This will provide immediate relief to borrowers who are not working or whose income has been reduced. In addition, it will boost the economy by giving people who are still working additional disposable income.  The Secretary of Education and the President could issue forbearance with the stroke of a pen.
  2. Place a moratorium on negative credit reporting for the duration of the pandemic and for a six-month period after the crisis ends. This will enable borrowers who were not in default before the crisis to maintain their positive credit rating.
  3. Suspend tuition payments to state community colleges and universities. Dorm closings are costing Ohio families millions of dollars. Suspending tuitions payments during the crisis will give many parents and self-supporting students the opportunity to stabilize their finances during the crisis. Once the emergency ends payments could be spread out over the years a student remains enrolled or be extended until after graduation.
  4. Allow Fannie Mae Freddie Mac, FHA and VA to suspend their rules governing how often and how many times a mortgage modification may be granted. This move, coupled with forbearance upon proof of reduction or elimination of unemployment will help working people hold onto their homes during this difficult time.
  5. Allow student loans and home mortgages to be modified in bankruptcy. This reform is long overdue and will provide both creditors and debtors with an equitable way to determine how much a borrower can pay while maintaining stable housing and jobs.
  6. Expand unemployment insurance to include sick days related to the outbreak and waive the one week waiting period for the duration of the crisis.

We hope our insight and advice is helpful to consumers and will spur positive action among policymakers at the state and federal level.

Be well and remember, wash your hands—often.

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Elliot Feltner lost thousands of dollars in value when the Cuyahoga County Board of Revision seized his property.

The Ohio Center for Investigative Journalism just published an article that documents the severe problems afflicting Ohio’s Board of Revision (BOR) foreclosure process. According to the story, published in the Center’s “Eye On Ohio” investigative reporting series, the BOR foreclosures have cost local governments, homeowners, and banks at least $91 million over the past 13 years. The process, created by the Ohio General Assembly in 2006, enables BORs to cease properties without going to court. In most cases, the properties are then deeded over to county land banks.

DannLaw founder and former Ohio Attorney General Marc Dann who has filed suit on behalf of a number of property owners victimized by the process, says the law, not the members of the BORs utilizing it are at fault. “BOR members are working hard to improve their communities, but the law they’re using is unconstitutional,” he said. “People across the state, banks, and local governments are losing millions. This simply can’t be allowed to continue.”

One of Dann’s clients, Elliot Feltner, is profiled in the story. After dealing with a number of personal tragedies, including the death of this father-in-law and wife, Mr. Feltner learned that a number of tax liens had been filed against the auto body shop he inherited after they passed away. He didn’t have the money to pay the back taxes so he put the building on the market and was going to use the proceeds from the sale to pay off the liens. There was only one problem: he didn’t own the building. To his complete surprise, the BOR had foreclosed on the property, which was valued at more than $140,000, and given it to a private company. If Mr. Feltner had been able to sell the building local governmental entities, including the county and the local school district, would have received nearly $70,000 in taxes and interest. Instead, they and Mr. Feltner got nothing.

DannLaw sued Cuyahoga County’s Board of Revision on Mr. Feltner’s behalf. The Ohio Supreme Court is expected to hand down a ruling soon.

Unfortunately, what happened to Mr. Feltner is far from an isolated incident. Research by DannLaw and the reporters who wrote the “Eye on Ohio” story revealed that thousands of Ohioans have been victimized by the BOR process. You can read the report here.

If you or someone you know has lost a residential or business property to a BOR foreclosure, we urge you to call DannLaw at 216-373-0539 to arrange a no-cost consultation today. We are eager to evaluate your situation and, if appropriate, take legal action to help you secure justice and just compensation for your loss.

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I have dedicated my entire legal career to helping people who have been hurt, scammed, cheated, or victimized seek and secure justice. I’m proud to say I’ve done just that at my first small law firm, as an Ohio State Senator, Ohio Attorney General, and now as the founder of DannLaw. That’s why I seized the opportunity to urge the members of the Ohio Senate Judiciary Committee to first strengthen and then pass SB 162 which would eliminate the criminal and civil statutes of limitation for rape and sexual assault.

The changes called for in the bill are both much-needed and long overdue. I’m pleased to share my testimony with all of you and to urge you to contact your state legislators and ask them to support this important measure. You may also watch my presentation to the Committee on the Ohio Channel.

Good morning, Chairman Eklund, Ranking Member Thomas and members of the Committee. I am here today to express my support for Senate Bill 162 which would eliminate criminal and civil statutes of limitations for rape. I want to thank my State Senator Nikki Antonio and Senator O’Brien who represents the district I once held for continuing the work I and colleagues of both parties began in this very room in 2005. Passage of this much-needed and long-overdue legislation would represent a monumental step toward securing justice for victims and imposing justice upon those who have escaped punishment and evaded accountability for their monstrous acts simply because they have managed to run out the statutory clock.

I first learned about the terrible physical and psychological pain victims endure when I led the effort to pass Senate Bill 17 while serving as the Ranking Member of the Senate Civil Justice Committee. After listening to the harrowing and heart-wrenching testimony of women and men who had been sexually abused as children, both the Committee and the Senate unanimously passed the bill which included a provision that extended the civil SOL for sexual assault to 17 years.

Unfortunately, in one of the ugliest and most destructive displays of the negative impact big-money donors can exert in the state’s pervasive “pay-to-play” culture, the nation’s multi-billion-dollar insurance companies placed the pursuit of profits ahead of the interests of victims and succeeded in stripping the civil SOL extension from SB 17 when it reached the House.

I learned even more about the grave challenges victims of sexual assault endure while serving as Ohio’s attorney general. I, like everyone who has had the privilege of serving in that position, devoted much of my time to ensuring that law enforcement had the resources needed to pursue, prosecute, and incarcerate offenders. Although I’m proud of all that I, my staff, and the AGs who preceded and succeeded me have done to ensure that offenders are prosecuted and incarcerated, anyone who truly cares about victims knows we must do more than throw their rapists in jail. We must provide them with the opportunity to seek just compensation for the severe physical and psychological injuries most will suffer for as long as they live.

I applaud Senators Antonio and O’Brien and co-sponsors Craig, Fedor, Kunze, Lehner, Maharath, Sykes, Thomas, Williams, Yuko for opening the courthouse door that was slammed shut in the faces of thousands of victims in 2005.

But today, 14 years after SB 17 was eviscerated by the insurance industry, we need to do more than lift the civil SOL applicable to offenders. That’s because sexual predators like Larry Nassar, Jerry Sandusky, Richard Strauss, Jeffrey Epstein, abusive priests, and others are judgment-proof due to the fact that they are broke, dead, or both.

But institutions like the Catholic Church, U.S.A. Gymnastics, Penn State, Michigan State, and the Ohio State University along with the powerful officials who looked the other way as monsters under their control abused innocent victims can and should be held accountable. To my point, Rep. Brett Hillyer of Uhrichsville recently introduced House Bill 249 which will allow the more than 170 people abused by Richard Strauss to sue OSU. Rep. Hillyer is on the right track, but he’s not going far enough. Every victim in the state should be afforded the opportunity to seek and secure justice.

This Committee could and should provide that opportunity by amending this bill to include the elimination of the civil SOL that now protects institutions and officials who knew or should have known what was occurring on their watch.

Thank you again, Chairman Eklund, Ranking Member Thomas and members of the Committee for allowing me to appear before you today. I would be pleased and eager to answer any questions you may have.

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Brian Flick - Managing Partner Dann LawI am pleased to announce that Brian Flick, Managing Partner of DannLaw’s Cincinnati office, has been named a “Super Lawyer Rising Star” in the area of consumer law for 2020. Only 2.5% of attorneys in Ohio are named rising stars in a particular practice area. This prestigious designation is reserved for attorneys who excel in their field, contribute to their community, and abide by the highest professional and ethical standards.

Super Lawyers selects attorneys using a patented multi-phase process that combines peer nominations and evaluations with independent research. Each candidate is evaluated on 12 indicators of professional achievement. Those who score highest then undergo a “blue ribbon” peer review by practice area. Only the highest-rated attorneys make the Super Lawyer list for each state. We are proud that Chris and Doug are among them.

Brian was previously named a Rising Star in the area of consumer bankruptcy law.

Super Lawyer Selection Process Emphasizes Peer Recognition, Accomplishment, Performance, Experience