ORLANDO, Fla. — A surge of unemployment applications are expected in the coming days as tens of thousands of Central Florida workers find themselves without jobs.

The sudden layoffs are in response to a slumping economy and business drops because of COVID-19 coronavirus.

Moratorium

State Rep. Anna Eskamani (D-Orlando) is pressing Florida Gov. Ron DeSantis to enact a moratorium to suspend evictions, as well as mortgage and rent payments, among other financial obligations.

“I would (be in favor of a moratorium). I need to see what my authority would be and how it would work,” DeSantis told reporters Thursday. “These are extraordinary circumstances, so I would be supportive of figuring out what I could do.”

Unemployment uncertainty

Part of that process is determining what restrictions the governor can waive. Current rules are set up to ensure a person receive unemployment benefits are actively looking for work, a task nearly impossible currently with tens of thousands of people being laid off or furloughed.

Currently, Florida allows a person to receive up to $275 per week for 12 weeks in unemployment benefits, ranking Florida at the bottom of the list for one of the lowest pay-outs and fewest week allowances.

Florida’s unemployment benefits system is also likely to take a major hit. DeSantis said the state is rapidly working to hire staff for the state’s call center.

Orange County Sheriff John Mina said deputies will not participate in any eviction activity for the foreseeable future, a policy the Florida Supreme Court is also considering enacting.

What to do now

“The first thing people do by mistake is put their head in the sand,” said Mike Nardella, a bankruptcy attorney with Orlando lawfirm Nardella & Nardella PLLC. “Reach out to the banks if you realize you can’t pay or you’re not going to have enough money left over.”

Whether it’s an auto loan, mortgage, credit card, or other kind of debt, Nardella says the key thing to discuss with your bank or creditor is a “forbearance.”

“You’re not asking for loan forgiveness right now, what you’re asking for is a forbearance, which means a delay,” Nardella said. “Essentially, you’re saying, ‘Can I have these payments delayed 60 or 90 days and basically add them to the end of the loan and extend them out?’ What you’re asking for is a grace period.”

Nardella said simply ignoring creditor calls is the worst mistake, although warns some calls can be unpleasant.

“They’re going to be getting a lot of calls from creditors and some will be more abusive and aggressive than others, and you can’t just pay the people that are most aggressive than others, and you can’t just pay the people that are most aggressive,” Nardella said.

Those bills to focus on are the one’s essential to your life: rent, mortgage, and car payments.

Less important right now, Nardella said, are “unsecured debts” such as credit cards or theme park annual pass payments.

Nardella said it’s also crucial right now to keep detailed notes about any and all conversations with your creditor, especially calls where creditors may be demeaning, threatening, or abusive. Keeping a log of when creditors call and what they say can assist in counter-suing your creditor for violating “Fair Debt Collection Practices Act”.

Banks React

Spectrum News reached out to a series of major banks and creditors.

Quicken Loans says they are following forbearance process mandated by Fannie Mae and Freddie Mac. Under rules being crafted by federal regulators, some homeowners may qualify for mortgage payment reductions or suspensions for up to one year.

Fifth Third bank

  • Vehicle Payment Deferral Program (up to 90 days and no late fees)
  • Credit Card Deferral Program (up to 3 payments and no late fees)
  • Mortgage and Home Equity Program (90 day payment forbearance, no late fees)
  • Small Business Payment Deferral Program (up to 90 days, waiving fees for 6 months)
  • Suspending NEW repossession actions for 60 days
  • Suspending all foreclosure activity for 60 days

Bank of America

  • Working with customers on a case by case basis
  • Refunds on overdraft fees
  • Customers can request deferred payments on loans, auto loans, mortgages.
  • No negative credit bureau reporting
  • Paused foreclosure sales, evictions, and repossessions

PNC Bank

  • Working with customers on a case by case basis
  • Would not provide specific conditions for deferred payments or forbearance

Seacoast Bank

  • Working with customers on a case by case basis

Truist (SunTrust and BB&T)

  • Payment relief on various loans
  • Waiving ATM surcharge fees

Citi

  • Waiving fees​