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How the Coronavirus Pandemic Is Impacting Mortgage Holders

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Both commercial and residential mortgage holders are struggling to make payments during the coronavirus pandemic. 

Rebecca Rose Woodland, litigator and legal analyst joined TheStreet to break down what you can legally do if you're struggling to make payments. 

Video Transcript:

Katherine Ross:
Many commercial and residential mortgage holders are struggling to make payments during the coronavirus pandemic. Joining me today is Rebecca Rose within litigator and legal analysts. Rebecca, is there any legal action you can take to get out if you're struggling?

Rebecca Rose Woodland:
So there are a couple of legal actions Katherine, that people can look to. There's a contract term called, frustration of purpose, and we're seeing the Valentino Corporation, the company that makes the high end bags, shoes, clothing, looking to do that in New York. And we're seeing other very big retailers across the country looking to do get out of their very high end retail space. They're saying that the purpose of the goods, the selling of the goods, the purpose of their contract has now been eviscerated due to coronavirus and the restrictions different governors have placed on people going to stores and customer foot traffic, even being able to sell one-on-one, the mask situation, all of that, the very high end retailers, as well as some of the mass retailers, The Gap Victoria's Secret, they're looking to get out of their leases longterm.

Rebecca Rose Woodland:
Many of them have paid and a number of them have not even paid during the coronavirus pandemic. So what we're seeing is both sides, defense, and plaintiff looking to do that. Residential leases a little more difficult in terms of tenants being sued to be evicted. There are moratoriums on that, but those are being lifted. So now a lot of landlords are looking to get that back rent that some people didn't pay during the pandemic.

Rebecca Rose Woodland:
Mortgages, there was forbearance, but a lot of those homeowners have to pay at the end. So we're going to see a tremendous amount of litigation moving forward on this with some novel legal arguments moving forward after the pandemic ceases. And we moved back into a regular state of doing business.

You can follow Katherine Ross on Twitter at @byKatherineRoss.

Read more from Katherine Ross here.

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