California State Order Regarding Foreclosures During COVID-19 Pandemic

March 20, 2020

3/20/20- Dear Clients and Friends,

There has been and will continue to be a lot of information about the State Order regarding foreclosures during the COVID-19 Pandemic and we wanted to take a moment to explain how this order may impact you and your family as it currently stands.

California’s Governor, Gavin Newsom’s, Executive Order Issued March 16, 2020

The order “Requests” financial institutions to implement an immediate moratorium on foreclosures.

This language suggests that suspending foreclosures will be discretionary and at the control of the individual financial institutions regarding what measures they decide to implement.

Additionally, the State order only applies to foreclosures arising out of a substantial decrease in household or business income, or substantial out-of-pocket medical expenses, caused by the COVID-19 pandemic.

Therefore, in order for the foreclosure sale to be suspended it must be linked to COVID-19 Pandemic.  If foreclosure proceedings had already been initiated prior to the COVID-19 Pandemic this Executive Order arguably does not apply to your Property and the bank can proceed with the foreclosure.

We will continue to update you as things evolve. In the meantime, please don’t hesitate to call us. We are always here to help.

Be well,

Jason W. Estavillo, Esq.


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