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The Effect of COVID-19 on Real Estate Foreclosure Sales

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Shally Warner
The Effect of COVID-19 on Real Estate Foreclosure Sales

The ten-person group limit on outdoor gatherings applies… maybe

Some time ago, Governor Abbott issued Executive Order GA-28 (the “Order”) imposing a ten-person group limit on outdoor gatherings. On August 1, 2020 the Attorney General’s office issued an informal legal opinion that the ten-person limitation on outdoor gatherings applies to real estate foreclosure sales as most real estate foreclosure sales take place on the courthouse steps or the steps of some other government building (outdoors).

However, the Order permits Mayors (or County Judges, in the case of unincorporated territories) to permit outdoor gatherings in excess of ten people. If that is the case, then real estate foreclosure sales can proceed so long as there is no cap on attendance or the cap on attendance is sufficiently high that all interested persons can attend.

Check Plan Ahead

Accordingly, if you are a creditor desiring to conduct a real estate foreclosure sale, you need to determine if the city or unincorporated area in which the foreclosure sale is to be conducted has elected either to impose no cap on public gatherings or a sufficiently high cap that all persons interested in attending may do so. Of course, no one is quite certain who makes the determination if a cap on attendance is high enough.

For further information, you may contact Ron Holmes via email or

(469) 916-7700 ext. 105.

 

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