EVICTIONS AND FORECLOSURES HAVE BEEN STOPPED DURING THE COVID-19 CRISIS: BEWARE OF THE NON-PAYMENT TRAP

A recent Executive Order issued by New Hampshire’s governor prohibits eviction and foreclosure proceedings while our state gets through the COVID-19 emergency spreading across the nation.  The measure is designed to ensure people in New Hampshire can keep living in their homes and apartments even if they lose jobs and have trouble making payments to landlords and mortgages.

But renters and homeowners should be warned against missing their monthly payments unless they really have no choice.  As in many cases of temporary relief, the pain of payments is only deferred.  The Order’s fourth paragraph states: “No provision in this Order shall be construed as relieving an individual of their obligations to pay rent, make mortgage payments, or any other obligation which an individual may have under a tenancy or mortgage.”

This makes it important to anticipate down the road when the emergency passes and the Executive Order goes away.  Try to avoid the credit consequences of defaulting on your lease or mortgage.  An eventual eviction or foreclosure may make finding your next place more difficult, as negative references warn away future landlords or lenders.