As we previously reported, last week, Kansas Governor Laura Kelly issued Executive Order 20-06 prohibiting evictions, foreclosures and any related judicial proceedings in the State of Kansas through May 1, 2020. Now, Governor Kelly has issued Executive Order 20-10, which amends and supersedes the previous order and provides additional clarification on certain points.
First, the new order expressly states that pending foreclosures and evictions are not prohibited by the order. This was implicit in the first order but is now clearly stated.
Second, the new order restricts the foreclosure moratorium to financial institutions foreclosing on single-family residences, where the default is caused by financial hardship relating to the COVID-19 pandemic. So, if the default under the terms of the mortgage occurred before March, 2020, a financial institution likely still may proceed with foreclosure. The new order does, however, purport to place a new pleading burden on foreclosing entities, during the effective period, to establish that the default was not caused by the COVID-19 pandemic.
The new order clarifies that the eviction moratorium applies to any landlord, whether it is an individual, entity, financial institution, nursing or long-term care facility, or other entity. But again, the moratorium only applies where the financial hardship leading up to the eviction was substantially caused by hardship relating to the coronavirus.
Excepted from the new order are foreclosures initiated by the United States government. The new order also encourages, but does not require, lenders and landlords to try to work out “payment plans or other agreements” to address defaults caused by COVID-19.
Baker Sterchi will continue to monitor Kansas State policy concerning evictions and foreclosures and will provide updates as they are received.